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PPC Click Fraud Rate Q2 2008 »

There is good news and bad news for PPC advertisers on the issue of click fraud for the second quarter of 2008.  Click Forensics has released their click fraud numbers for last quarter and so I will give you the good news first:

Other than that, that is about all the good news for PPC advertisers and click fraud.  Here is the bad news:

The sad thing about this is that, according to Tom Cuthbert, president of Click Forensics, a primary reason for the slight decline in click fraud from last quarter is because of the efforts of the ADVERTISERS, not necessarily the Ad networks.  According to Click Forensics, the advertisers have spent more time checking their clicks and filtering out the fraudulent ones before their campaigns were affected.  The Ad Networks have made better strides in doing that automatically, but it is still not enough.  In the end, it is still up to the people who pay to double-check their accounts, which is unfortunate that it has to be left up to them.

With the PPC click fraud rate being 16 percent industry wide, that loosely translates into $16.00 out of every $100 you spend is lining the pockets of some person who is not the least bit interested in your product or service.  If your monthly budget is $100, you are paying a lot per year for fraudulent clicks.  Pretty steep to me.

If you only advertise on Google and Yahoo, that number could climb to $27 out of $100, loosly figured.

This indicates that one should not just jump into Internet Advertising without examining all the angles.  It can certainly provide great benefits, but also presents risks that one should measure first.

It should also be noted about Click Forensics that their data are gathered from their own network called the Click Fraud Network.  That network is made up of more than 4,500 online advertisers and agencies, but it does not include everyone.  So, if you are weighing the pros and cons of PPC advertising, you should review data from multiple sources including the actual Ad Network you are considering joining.

Microsoft Opening European Search Centers »

Steve Balmer of Microsoft announced Thursday that they were opening 3 R&D centers in Europe as part of their ongoing efforts to catch up to Google in Search Engine market share.  The search center locations would be in Munich, Paris and London.

Microsoft also announced that it was going to be increasing its $600 million/yr European research and development budget.  They are also anticipating employing several hundred including software developers.

The center in Paris is expected to be open in March 2009 and they are getting some pretty nice tax breaks too.  Microsoft will get 30 euros back for every 100 euros it invests.

Speaking in Paris, Balmer said:

We are the challenger, not the leader, in search, but we believe strongly that search is in its infancy and there is so much room for innovation. For companies like Microsoft search is the key for unlocking huge new opportunities in advertising.

In the US, Microsoft barely has 8% of the search market share, compared to Google’s 62%.  But in Europe, Microsoft’s share is even less at 2 percent.

New Microsoft Pay to Search Program »

Microsoft started an initiative back in May called Live Search Cashback which provides rebates to users of its search engine who search for and purchase products through Microsoft Live.

It was a novel approach to attempt to increase search engine market share.  Currently, Google has a commanding lead at about 63%.  Yahoo! is second with just under 20% and Microsoft is third at just over 8 percent.

The latest “pay to search” program from Microsoft is called SearchPerks and it works pretty simply:

  1. Visit the site using Internet Explorer 6 or higher and sign up for SearchPerks.
  2. Download and install the tracking program to a Windows PC.
  3. Use Microsoft Live Search and earn “search tickets” every time you search - up to 25 per day.
  4. Redeem those tickets for prizes.

The first time you signup, you are credited with 500 tickets and the first prize point is 5 music downloads for 525 tickets.  You can even get things like airline miles.

It could be worth a check because it is sort of like Microsoft giving you $5 to use Live Search.  If you download music, typically each song costs about $1 (5 songs = 5 bucks).  So, signup for SearchPerks, use Microsoft Live Search for a few days and redeem your 525 tickets for 5 music downloads :) .

Wikia Search Update »

Wikia Search was launched in Alpha earlier this year and we have been watching it out of the corner of our eye to gauge its progress.  At first, wow, it was bad.  The search results were slow and chocked full of irrelevant sites.  But, hey, it was only an alpha release and creating a new search engine is a HUGE undertaking.

Then in June ‘08, the alpha was re-launched.  They knew the results were bad and needed to improve before they could become a real player in the search engine market and they expected the results to begin to show improvement within a few weeks.

So, what do we think now that about 2 months have passed since Alpha relaunch?  Well, wow, it is bad.

Here is what a search for “buy computer online” will show:

  1. An article about Best Buy from Wikipedia.  Ok, fair enough if you want to give props to Wikipedia first above all else, even though that does not help me buy a computer online.  Maybe a link to Dell or HP or something like that would be more helpful.
  2. A link to ebay’s main search page where I have to retype my search query “buy computer online”.  Well, at least it is possible to actually buy a computer from the site you directed me to.  But could you not at least direct me to the Electronics category or even, *cough* the Computers category?
  3. A link to about.com where I can download computer games.  But wait, I have not even bought my computer yet - I am trying to make a purchase first and then I can download and install games.  Proverbial “cart before the horse” I think.
  4. A link to Apple’s home page where I can at least see a computer, eventually, after I first wade through the gaudy iPhone pitch and then stumble on the little button at the top that says, “Mac” - assuming I know what a Mac is and am not a complete computer novice.
  5. A link to a site that will tell me how to make money online (refer to comments on #3 listing).
  6. A link to oreilly.com where I can download PDF files and a bunch of other stuff that is no help because I still do not have a computer yet.
  7. A link to the Scottsdale Public Library, which is possibly where I am physically located because I still do not have my own computer and am using one of theirs.
  8. I give up…

What’s is more, at the top of my search page is a small graphic that prompts me to see results from Google and Yahoo.  Wait, I thought that was one of the points behind WikiaSearch - to take market share away from Google and Yahoo.

wikia search directs to googleAnyway, I would not hold your breath on a Beta launch of Wikia Search anytime soon.  They are way behind nearly every other search engine in the Internet and the main way the intend on improving is by having you and I edit their search results telling them when we find something irrelevant.  I think the concept is good, but I don’t have time to do that.  A search engine is not a destination; it is a waypoint.  I want to type in my query and move on.

Cuil First Impressions »

By now, I would imagine that everyone in the SEO world has at least heard of the new startup search engine called Cuil (pronounced “cool”).  It is run by some former Google employees, uses different  algorithms and shows the results in a layout similar to a magazine or newspaper.

cuil search engine As one might expect, an announcement of a new search engine has created a pretty good buzz around the Internet, but many searchers using Cuil are less than impressed.  You can easily find comments about it taking minutes to return results and about it returning zero results for popular terms.  Many of the feedback that I have seen has been quite negative, which one might expect in today’s “instant gratification” Internet where you have only seconds to make an impression.

However,  I tend to be ever-so-slightly enthused with Cuil for two basic reasons:

Having said that, I certainly think that the returned results leave something to be desired.  Many of the searches that I did returned completely unrelated results on the first page, which would indicate an issue with the ranking algorithms.  I am sure they will sort that out, but I can’t help but wonder how much testing they did before launch.  For example, a search for “cuil search engine” on Cuil will not even list cuil.com in the search results.  Hmm.

Another issue is the slow response time for some searches.  It would appear that their servers are not currently up to the challenge of being a real threat to Google, or even Yahoo! or MSN.

Those last two points make me wonder how much testing they did and how exhaustive it really was.  One would think that success in those two areas would be the very foundation of a modern search engine and, therefore, would be top priority.  But maybe it was just a case of first day jitters.

All-in-all, I think it is unfortunate that there has been so much negative publicity surrounding Cuil.  They have some bugs to work out and that is to be expected.   I think that their algorithm will get smarter and their servers’ response times will improve.  In fact, a few of the searches that I tried early yesterday, which returned woefully unrelated results, were vastly improved when I tried them last night.  That is a step in the right direction and I would expect that things will get better.

Google competitor?  Not at the moment.  Threat to Google?  Not at the moment.  Should Yahoo! and MSN pay attention?  Not right now, but don’t get too comfortable.

TechCrunch and Search Engine Land have some extensive reviews of Cuil.

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