Category Archives: Search

Demand Media Beats Wall Street’s Expectations, What’s Next

One of my least favorite category of ‘internet companies’ are those like About.com and Demand Media’s eHow.com. These sites create basically useless, non-authorative content that misleads consumers, provides little value and prevents higher quality content from appear in search engine results because that better content is not marketed as well.

Needless to say, it’s a billion dollar business.

And to prove it Demand Media bested Wall Street’s most recent quarterly earnings expectations. The question is, with all the changes Google and the other engines are making to the search algorithms, will that continue to affect DM’s future prospects, or will they remain highly reactive step-in-step?

Like I said, I despise this type of content. It sucks.

The problem is not that they are taking advantage of this market. The problem is the consumer. We need to educate non-technical people that when they are doing searches, sites that purvey low quality content should be ignored. Often this means avoiding the first few search results; or at least understanding which companies produce shitty content, like About.com and eHow.com.

Educate your friends and family and let high quality content prevail.

Amen.

Google CPCs and Sitelinks

If you want to learn more about the relationship between you average CPC (cost per click) and AdQuality score, and how those might be influenced inversely by way of ad extensions, check out this great article by ClickZ:

http://www.clickz.com/clickz/column/2143667/solving-mystery-googles-q4-cpc-drop

In a nutshell, as you leverage ad extension you you ultimate goal is to improve conversions as well CTR. Google ocourse wants both as well. Higher CPCs yield more ad revenue, while conversions keep advertisers happy.

So, ad extensions such as Sitelinks (one of my personal favorites) are essentially designed to do both. An interesting sideeffect of this is an improvement in your AdQuality score (because your CTR increases). In turn, your CPC decreases, a nice bonus. Over time this benefit will most likely diminish as more advertisers take advantage of the features. Therefore, being an early adopter of these types of technology can yield some nice benefits.

So it is more important than ever to ensure you stay up to date on the latest trends in the industry.

On a side note, this is my first post made from my iPad, and I’m doing soLin the airport waiting for my flight.

 

CPCs fall in Q4 for Google as Ad Quality Improves

In a rare turn of events for search marketers, the average CPC (cost per click) search marketers paid to Google in Q4 2011 actually fell by 8% according to MediaPost’s report on Google’s Q4 analyst earnings call.

As a search marketer, this news is extremely timely, relevant and refreshing. CPCs have been escalating for years as more and more competitors flood search with their ads.

It seems that many improvements that Google has made to scoring ads (QualityScore) and better education of advertising best practices, has lead to an increase in the quality of ads and advertising campaigns. This has made the campaigns more efficient, which then can often lower the cost of advertising and CPCs. To summarize at a really high level, higher quality ads don’t necessarily need the highest bid to be shown first and win clicks. Google factors in many variables to determine rank.

However, advertisers should not necessarily breathe a sigh of relief. In certain industries that are highly competitive, CPCs may not have declined, and certainly not by 8% as reported. Only your own data will show how your business has been affected. But, it might make you take your foot off the gas a bit and back down on those bids. I have long pondered about what would happen if advertisers all backed off to form a reverse auction, per se… Where everyone kept lowering their bids. A crazy thought of course, one that probably cannot take place in free market capitalism; and it has similarities to a cartel so-to-speak.

Nonetheless, I continue to encourage advertisers to occasionally take their foot of the gas and focus on landing page quality and ad quality versus simply raising their bids constantly. Focusing on the quality will yield better long term results.