Display ad revenue is not as profitable for Google as its search engine business because it has to share it with partner publishers in the Google Display Network. The big success for Google is that the world’s biggest search engine became less dependent on search advertising, the text ads that appear on the search results page. Display revenue, including network ads and YouTube, has become a $5 billion annualized business, said Larry Page. That means it’s doubled in size since October 2010, when Google said display had become a $2.5 billion business.

“I’m most excited by the fact that we improved our velocity and execution,” said Mr. Page, noting that revenue for the quarter had passed $10 billion for the first time.

Google Mobile Advertising Expected to Explode

Mr. Page also said that 700,000 Android phones are now being activated every day, with 250 million now in use.

Bryan Wiener, CEO of digital marketing firm 360i, said he had expected a strong showing from Google in mobile — where its share of search is dominant — after Black Friday and Cyber Monday, when searches on mobile exploded.

“What’s lifting them seems to be a tipping point in consumer behavior,” he said, also noting that he had expected Google’s display business to benefit from YouTube’s redesign and the momentum it generated for brand display advertising.

Google+ May Drive Mobile Search

Mr. Page also reported that Google+ now has 90 million users, up from the 40 million reported last fall. He said that 60% of users engaged on the network on a daily basis, while 80% do on a weekly basis.

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Display Ad Rev. Doubles

This will be a tremendous boost to Google’s efforts to replace the Yellow Pages with local information that is useful to people searching Google Local. Google wanted to use Yelp but was unable to buy the company and has run into difficulty using the Yelp reviews freely. Zagat has a trusted reputation, even if it is not as hot as it once was.

Some New York Times readers scoffed at the acquisition, including Lyle Vos, who claims to be the Democratic candidate for president in 2012 (so consider his reliability). He says:

Nobody has used Zagat since 1997, Maybe Google would be interested in buying my Sony Walkman or my 8 Track collection.

While it may be true that New Yorkers use Zagat more as a directory than a reliable rating source, the rating technique will translate well for places like Santa Rosa which has considerable tourist traffic. There are restaurants with excellent food that will never have great websites because the owners and chef are not writers and don’t want to spend the time updating a blog and tweeting. Nevertheless, they should be able to enjoy new business based on excellent food. Reliable ratings is a great way to do it.

I think Marissa Mayer may find a big challenge in keeping the ratings as honest as possible. I am seeing an uptick in spam mail offering “reputation management” which is a fancy way of offering to revise the reviews. This may turn into an interesting duel.

What do you think? Would you try a place that was recommended on, ahem, Zagoogle?

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Google Buys Zagat

Matt Mullenweg announced that 22 out of every 100 new domain names registered went to WordPress sites.

There is so much to be excited about with the constantly evolving WordPress, including the new post formats, but the real joy of WordCamp is the energy of the speakers. The rooms seem to be swirling with curiosity and generosity. People offer help and ideas freely and enthusiastically. Absorbing the energy of WordCamp I realize that I keep coming back because it’s not about the features, it’s about the spirit.

We have heard about the Tipping Point and anthropologists talk about the 100th bird. We have all experienced that when a certain number of people embrace a new technology, suddenly everyone is using it. I remember the first telephone answering machines, fax machines, automatic coffee makers — we all use them now.

Scientists at Rensselaer Polytechnic Institute have found that when just 10 percent of the population holds an unshakable belief, their belief will always be adopted by the majority of the society. I predict that we will see accelerated adoption of WordPress, and that the percentage announced at next year’s WordCamp will be even higher.

For example, I just launched a new WordPress website that has no blog posts on it! WaterStorz emergency water storage containers hold 7,000 gallons of drinking water in a steel shipping container. The container is portable, can be delivered to any road-accessible level site and filled on-site with water for emergencies. Why did I use WordPress if this website isn’t going to be used as a blog? Because I could get the best looking design for the lowest cost to the client. He is thrilled.

What do you think? Is WordPress going to capture a larger share of the non-blog web design market? Are there other techniques that you think might catch up to WordPress and overtake it?

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WordCamp SF 2011

The latest ad innovations to Google AdWords were outlined by Google marketing pros Dan Friedman, Bill Kee and Alex Kenin at the Search Engine Strategies Conference in San Francisco in August. The “core principles” are Easy, Relevant and Smart. Alex showed how the Opportunities Tab in the AdWords dashboard makes it easy to find recommendations for keywords, bids and budgets. For advertisers using display ads, the new “Interest Categories” launched two months ago shows 100 active audience categories to make selection easier.

The Click to Call mobile ad innovation is that the link is NOT to the website but to the phone number (see photo left). Dan Friedman outlined Google’s efforts to deliver relevant ads including new ad formats including the exciting new hyperlocal mobile advertising which does NOT click through to the website. This mobile-only, GPS-triggered ad format is click-to-call only. Perfect for take-out pizza and towing companies. Dan revealed that many advertisers using ad sitelinks would be be surprised to learn that Google rearranges the order of the links to optimize clicks and he urged advertisers to offer Google as many as 10 site link choices. Google product ads bypass bidding and simply charge a commission on sale that is a percentage of the purchase price.

Bill Key showed how Google is working to make AdWords “Smart” with improved performance and conversion tracking reports available through Analytics. The five new reports on Multi-Channel Funnels describe the path to conversion including activity in social networks that lead to conversions. He demonstrated results from Facebook fan pages and referrals from Twitter and shows how this advanced reporting helped a Thailand resort boost sales 44% by offering special deals on the first click.

Are there ways you think Google can improve AdWords to make it more Easy, Relevant and Smart?

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Search Engine Strategies – AdWords Innovations

1. What do you do that’s remarkable?

Begin by identifying the things people are amazed by, the things you get asked questions about, the things that capture their attention.

2. What’s the “human story” behind that value?

Take what you do that’s remarkable and explain how it changes people’s lives. Describe the emotional impact of your product or service.

3. How can you tell that human story in a visual way?

There are different types of content: text, audio, photos and video. Which is most viral? You guessed it: photos and video!

4. How can you get your customers to tell that human story?

Content can come from two places: you or your customers. Which is most viral? Right again: content from your customers!

5. How can you incentivize your customers to tell more stories?

Incentives, incentives and more incentives. If you give people a reason to be creative, you’ll be amazed at what you get back.

Using these five points as guidelines, I can develop a compelling website for a client that will bring in new business. Coupled with Google advertising to attract potential new customers to the powerful new website, businesses can get and keep top-quality new business.

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Patrick Schwerdtfeger Social Media For Effective Marketing

Newspapers reported that Wallace, 43, claimed to have sent as many as 30 million junk Emails per day in the 1990s. He was arrested on the last day of the “black hat” convention in Las Vegas. Spam King Arrested Global Post.

More on this subject: Spam to Die Soon

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Spam King Arrested in Las Vegas

This chart was posted on AllThingsD.com by Ben Elowitz, an angel investor in media and e-commerce companies who now heads Wetpaint.com. Using commercial comScore ratings (which are financed by subscribers) he for his augury he predicts:

The old searchable Web is crashing; while the new connected, social Web is lifting off.

While this dramatic chart may be exaggerated by statistical data manipulation, the trend is clear. Each of us, every person on the planet, has a daily “pie” of time to allocate. The amount of time we spend on the Web is being increasingly gobbled up by Facebook which is brilliant at keeping people on the site. Was it only a year ago when your friends would Email you a link to a funny video and you (and other friends on the Email list) would click to YouTube? Now that link is embedded in your Facebook feed, and Facebook gets all the “comScore” for the time you and your friends spend watching the video. This chart reflects that technical shift.

People Now Connect to Other People, Not To The Web Page

Ordinary Facebook postings are not searchable, so Elowitz scoffs at the searchable Web as “the document web.” He sees a shift away from searching for information to a “fully connected” digital life. Today’s New York Times shows how big companies are using internal social networks as a way to keep team members “fully connected” on projects and upcoming events, bypassing Emails and meetings. http://www.nytimes.com/2011/06/27/technology/27social.html

Comparing Apples to Oranges

Again wielding his comScore cudgel, Elowitz asserts that Facebook began receiving as many visits as Google more than a year ago, in March 2010, and that it has triple the monthly viewing time as Google. He must have forgotten that Google is a search engine, not a content provider. Google is designed for people to find what they are looking for in a twinking and leave promptly for the desired content, so comparing site “stickiness” is not exactly relevant. Elowitz dismisses Google as providing a “utility relationship” but I have a very warm relationship with my utilities. I would give up both Google and Facebook before I would give up running water and electricity!

The Human Connection Changes Everything

Fifteen years ago, Luddites lamented the rise of the Internet as the work of the Devil, isolating people and fragmenting people into little cubicles at work and separate rooms at home. The pendulum has swung back with people now having access to the minutiae of life — our own, our friends, our congressmen. If you want to be connected, you have a wide range of tools. How does this affect your business?

We have reached a tipping point. We now need to stay connected to our customers and to provide them with insights into what is going on. In days gone by, people found goods and services through personal referral. Those days are back and it is only going to grow. Facebook, Yelp, Google Local and others are helping customers find the right supplier fast and reliable. Our time online is becoming more productive and more enjoyable. When we do this right, businesses and their customers become truly connected digital partners and can use the Web effectively to build relationships and, yes, even loyalty. Do you think the emergence of social networking will be a help to your business? What would be the best strategy to build loyalty with your customers?

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Why Your Business Must Be On Facebook

Not all ads look like ours, however. This screenshot from the Google article about the changes to “directions” clicks in AdWords appears to show the blue pin associated with a Boost ad.

This ad does not offer an expandable address with a + to reach a map, just a “Directions” link. If it is a Boost ad, this may make sense for businesses like restaurants. Searchers could put in the name of the restaurant and click on the “Directions” link to find their way. Restaurants would rather pay for clicks that deliver hungry customers than clicks to their website! But Boost advertising is not ideal for every business. See my article on some expensive pitfalls in Boost advertising.

The Smartphone search results are even more interesting. More useful to the searcher, more expensive to the business. When the searcher clicks OK, the advertiser is charged.

This is ideal for people on the road searching for lodging, auto repair or merchants for a specific item. Traveler’s services will greatly benefit from this service. But be careful, don’t use it indiscriminately, because people searching on your business name on Boost will not get a free listing — your business will show only as a ad link that boosts your click charges to Google.

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Google to Charge for Directions Clicks in AdWords

Google’s Strategy with Boost

Setting up Google AdWords advertising is wicked hard. Two months ago I taught a four hour class to 20 business owners at Santa Rosa Junior College on AdWords and even though every student left with an active Google AdWords account, the amount of material that needed to be covered in such a short time was brutal. The recent changes to the AdWords dashboard have made it ideal for quantitative analysis wonks and incomprehensible for normal business owners. Boost is Google’s effort to offer something more accessible. Google’s tells businesses that Boost will:

• Attract more local customers to your website or Place page.
• Pay only when people click on your ad.
• Create ads directly from your Places account within minutes.
• No ongoing management is needed after you sign up. Boost runs the ads for you.
• Measure the effectiveness of your ads in your Places dashboard.

The Boost set up takes some of the pain out of setting up Google advertising by making it as simple as 1-2-3

1. select search category from a drop down box
2. write a text ad
3. select a monthly budget amount from the suggestions ($50/mo minimum)

How Did Boost Work For This Client?

The customer had been advertising on Google AdWords for five years but was was slipping in page rank because their budget has not increased as fast as the competition for Google AdWords in their category. I shifted their budget from AdWords to Boost for a one month trial.

According to Google Analytics, traffic to the site plunged 94%. Of course the click charges plunged too, but the total Boost clicks for a month was a puny 14! Worst of all, when people searched on the exact business name, Boost charged $7.50 per click, and there was no way to click on a Google Places/Google Maps listing for the business without paying the Boost click charge. That is, the ONLY listing for the business was the enhanced Boost listing. This is in contrast to AdWords where the organic results appear in the left column and the ad appears in the right column. The two listings complement each other in Web searches.

I think Boost might be good for a bricks-and-mortar business that does not have good name recognition (Boost is designed for businesses with actual locations, not home-based or virtual businesses).

Have you tried Boost? What was your experience?

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Is Boost a Bust?

Computer scientists at UC Berkeley and UC San Diego delivered great news at the IEEE Symposium in Oakland yesterday — they found a way to choke off about 95% of spam. According to the New York Times, nearly all orders for spamiceuticals are handled by just three financial companies; one each in Azerbaijan, Denmark and Nevis in the West Indies.

Stefan Savage of the University of California, San Diego worked with colleagues at San Diego and Berkeley and at the International Computer Science Institute to develop “spamalytics” to find a choke point where spam transactions could be cut off, ending the financial lifeblood of spammers. By blocking the transactions at the point at which the consumer uses a credit card, it is possible to shift the burden of cost to the spammer.

“The defenders can, in principle, identify which banks the scammers are using far faster than they can get new banks,” Dr. Savage said, “and for basically zero cost.”

An earlier study undertaken by the scientists showed that a single commercial spam e-mail campaign generated three messages for every person on the planet. That same study revealed that to sell $100 worth of Viagra, a spam provider needed to send 12.5 million messages. Would you be glad to see an end to spam?

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Spam To Die Soon