Yahoo 22 Google 1.5

[temi]

Shares of Yahoothe number two search engine, have surged 22 percent this year while shares of Google, the top dog in search, are up just 1.5 percent.
The search wars continue: Google maintains a big market share lead but analysts are optimistic about Yahoo's new search platform Panama.
Google outshined Yahoo on Wall Street in 2006......but it has been a different story so far in 2007.
But with both companies due to report earnings in the next few days, some analysts think the momentum could swing back to Google. he increase in Yahoo's stock is largely due to optimism about the company's new search tool, called Project Panama.

full story

 

[Bagi Zoltán]

Good to know that. Temi, a little offtopic or rather offthread but what do you think about the future of the search engine marketing? I think that the contectual link units of google and yahoo will be substituted by the different text link advertising programs. I think they are more intelligent. Text links not javasrcipt based, and I don't think that a lot of adwords advertiser would be very satisfied. I can imagine that google will change their javascript based displayer code will be changed in the near future.

What do you think?

 

[temi]

I think you have seen things from and SEM view point, that is exactly how I see and hope things are
But you and I are not average internet users, we have lots of deep knowledge of how SEM and SEO works so we look for text based links rather than Javascript based link but majority of Google and Yahoo AdWord customer cannot tell the difference between text link and Javascript base.
I have a client who spend about the equvalent of 10,000 Euro with Google every month on AdWords, all he cares about is just traffic and he told me that when he spend that money he actually gets value for his money in terms of traffice, so such people do not care the basis of the traffic they just want traffic and they are satisfy as long as they make their money back.

Another reason I also thing Google/Yahoo will not go to text link ad is because it will affect organic search engine results. I have a felling they will keep the ad delivery technology as it is, the only thing I see them changine is moving from PPC to PPA as most PPC customer are not happy because of the amount of money they lose to click fraud.

 

[Bagi Zoltán]

Temi i need some explaination. I'm really dummy concerning SEM. Really very. I have never managed any campaign. What does PPA mean?

Can your client make threir money back by the traffic?

 

[temi]

Bagi,
PPA= Pay Per Action and PPC = Pay Per Click. With PPC, wether there is a sale or now, you pay Google for the click, with PPA, you only pay Google if the customer actually buy something from your site. PPA is very new, its has not been rolled out on a large scale like PPC just yet.

Yes, my client make his money back, he has been spending this budget for over 1 year now.

 

[OldWelshGuy]

Guys you can forget ever getting backlinks from PPC as it would be in direct breach of the FTC ruling that Paid and organic adverts must be clearly displayed, and that ANY organic listings that have been enhanced by payment ALSO have to be clearly marked. This means that if Google used indexable backlinks they would be acting illegally.

Dream on

 

[Bagi Zoltán]

Maybe I'm completetly wrong but in my opinion the cut of SEO and SEM is an empty heap. SEM means for me only the different paid adverts among the searching results and at other sites.

I think the reall customers of this kind of asvertising programmes are the internet marketing agencies. As far as I know setting an aswords campaign is not so easy thing if you make every effort to be as cost-effective as you can.

According to the online marketing consultant's interpretation the SEO is part of SEM. I understand this because they usually do the two task parallel. I hope this consultants once they will realize that buying text links at selected websites can provide more benefit increasing the cost-effectiveness and the satisfaction of their clients. According to my whole blather the marketshare of the different text links program will grow fast while AdWords loose.

If my version will materialize, I think google will adjust itself to the changed needs, and will substitute it's current paid program into something more saleable.

In Hungary the clients are not really curious about the paid advertising. They all want to be the first among the organic results.

 

[temi]

I think your argument about text link growing faster and adwords losing could be true in Hungary but I do not think its the case in UK, if anything AdWords will grow even more because I know serveral companies who are already number 1 for many many keywords withing their industry but are still buying adwords in addition to that.

Also there are some industry where the good are seasonal, the need to sell the goods withing say 2 months so they cannot wait till the organic search result is high, they want to sell TODAY! only adwords can bring you that kind of traffic.

But you are righ because I have another client, he spends about £900 per month on adwords and he hired me to get him organic results, I told him it will take about 3-4 months, he agree, when I got his important keywords to the top, he did not stop his adwords ads completely, he just reduce what he spends on adwords by about 70% so at the moment, I really do not see adword declining, its decline will come eventually but not in the next 4 years or so.

 

[Bagi Zoltán]

Temi, you have much more experience with PPC programs, could you tell me what is the advatage of the AdWords campaign against buying text links at high traffic sites? Because I can't understand that kind of customer behaviour.

 

[temi]

I am probably not as experienced as you think but I think I can confidently anser you question.
Lets us Golf Equipmet as and example. How many golf equipment related sites sell links and have high traffic in UK? Maybe 1 or 2.

How many search engines in UK can sell you number 1 keywords for Golf Equipment and actually deliver traffic? At least 4 of them: Google, MSN, Yahoo, Ask.

Now if you have 10,000 pieces of Golf equipment that MUST be sold this Summer because after summer you will lose lots of money and if you sell all the equipment you will make 10,000 Euro profit. And to buy the keyword on Google or Yahoo cost you 5,000 Euro to sell all the equipment. To buy text link on the most popular UK golf portal will cost you 1,000 Euro, that is 4,000 less than Google or Yahoo BUT that site does not have 1/100 of the traffic Google or Yahoo can deliver. Now, which advert will you buy?

Buy AdWord for 5,000 and make 15,000 profite after paying adwords or buy 1,000 text link from the Golf equipment portal and sell only about 2,000 equipment and make 1,000 profit?

If you are a business man, which advert will you buy? Adwords or Text links?

 

[OldWelshGuy]

You can not compare the two items. Adwords ads delivered to a searcher will result in a 1 in 7 click through. organic rankings #1 spot results in a 6 in 7 click through. an advert on a page will result in probably 1 in 50 or less click through, as people have already found what they are looking for on content advertising.

 

[temi]

Excellent stats James. Which of the two medium can put your keywords on Google in the next 1 hour? Organic or AdWords? this is the point I am trying to convey to Bagi.

If you have time sensitive products to shift, you do not have time to wait to get to number 1 for the appropriate keywords with organic results, you buy AdWords righ away.

 

[Bagi Zoltán]

Temi, it was a really clear explanation for me. Thank you for that!