Microsoft Announces Engagement Mapping Ad Technology

AdWords has become a black box beyond the means of many small advertisers. To help some advertisers automate their accounts tools like free conversion tracking and CPA based bidding have came about. But all the tools that help enhance the perceived value of search ads and the value of conversions does nothing for brand ads or the other ads people see before searching and buying.

Content ads, which were relatively expensive when AdSense first came out, have seen their price drop over the years as

  • advertisers adjusted content bids downward
  • smart pricing reduces prices (again, again, and again)
  • quality scores that drives out arbitrage ads
  • the clickable region has got smaller

The value of many publishing based business models has aggressively eroded as

  • publishing markets get saturated
  • AdSense has replaced direct ad sales for many sites
  • Google keeps discounting the price (and perceived value) of non-search ads
  • Google's search based ads get conversion credit for demand created by other ads

Google claims their success is just because they are simply better than the competition and they have been doing search longer (that second claim is untrue - Yahoo! owns Inktomi and AltaVista, which have both been doing search longer than Google). The truth is they have a huge advantage in network effects, have advertising believe that their inventory is worth more than it is, and that other online ads are worth less than they are. It is going to be hard to create a viable competitor unless the metrics for measuring value are changed.

Microsoft's answer to this is called Engagement Mapping, yet another black box, but one that aims to share part of the ad credit with display ads (clicked or not) instead of tying most of the ad value to the search based conversion. Publishers would clearly benefit from this, but if it is hard to get advertisers to buy AdSense ads on Google (where Google essentially giving away the ads) how hard will it be to get advertisers to buy in on this? Perhaps big brands will use it, but smaller companies will not be interested.

If Microsoft does not own a big piece of the search market, another big hurdle is how will they advertisers trust this model without giving Microsoft their analytics data?

How might this pricing model change online publishing (for better or worse)?

Inclusionary Statements - Are You Willing to be One of the Best?

One of the things that a lot of thought leaders do is inspire people. It is easy to believe when they give you something to believe in.

I recently stumbled across this page. Although it is just text, to me it seems just as powerful as listening to Barack Obama speak. It is not even the words that matter...it is the underlying tone and enthusiasm.

Sometimes I am a bit too cynical for my own good. Far too often I place principal ahead of growth strategies. But most of that stuff does not matter. The future of sustainable marketing practices is more about creating inspiring stories than about knowing more or blending ads in content better. Which, I suppose, is a good reason to go to the gym every day. The better you maintain yourself the easier it is to be inspiring. Now that's a holistic marketing strategy. :)

Free Stuff

Chris Anderson, author of The Long Tail, announced his next book Free, in a featured Wired article.

Speaking of free stuff, Patrick Altoft created a free Wordpress plugin to track which pages on your blog get crawled most frequently. Joost De Valk has a free newsletter dedicated to Wordpress plugins.

Interview of Nicholas Carr on The Big Switch, Blogging, & the Internet

I recently finished reading Nicholas Carr's The Big Switch, and as a longtime fan of his Rough Type blog asked if he would be up for doing an interview. He said sure, and here is the interview.

What is The Big Switch about?

It's about the interplay between technology and economics and how it influences the way people live and work. I look at how the electric grid transformed industry and society a hundred years ago, which is a cool story in itself, and then I use that story as a way to explain the similar shift that's going on today with computing, as software applications and data storage shift onto the Internet's computing grid. I argue that the rise of "cloud computing," as it's called, will also have far-reaching social, cultural, and business effects - some good, some bad.

What inspired you to write The Big Switch?

It's been clear to me for a number of years that the Internet was going to transform computing - to turn it into a kind of centrally supplied utility. I guess I just wanted to put that shift into a broader context for readers, a historical and economic context as well as a technological context.

The web empowers many individuals. Yet in spite of all this innovation, the middle class in the United States is hollowing out. Why is that? As individuals how can we protect ourselves from that trend?

People with computers and Internet connections have enormous new opportunities to express themselves, and a smaller set of people have also gained new economic opportunities thanks to the Net. But I don't see any sign that the economic opportunities are being widely spread, as they were with industrialization in the last century. I think what we're seeing, in fact, is that software can take the place of labor on a broad scale without creating large new pools of attractive jobs. That's one of the main reasons the middle class has been stagnant in recent years and the divide between the very rich and everyone else has been growing ever wider. As the cost of computing continues to fall, software-based automation will only expand and accelerate. There will still be lots of good opportunities for individuals - the ranks of the rich are bigger than ever - but for the middle class in general things will likely get tougher.

With the publishing economy becoming more attention based, will most writing come in chunks so small and so fast that they lack context and the bigger picture? If so, how could this trend be reversed?

I think it's quite clear that the Internet is training our minds to take in information in quick bursts and that in turn we're slowly losing our ability to maintain the concentration and patience necessary to read extended pieces of writing. This is a phenomenon that many people who use the web a lot have noticed. I think we're probably at the start of a major shift in cognition, and I doubt it's reversible.

Sometimes I read TechMeme and 100 claimed thought leaders are all agreeing on the same thing. Then the next day (or sometimes two days later) you write about how all of them are wrong, and then 2/3 of them agree with you. What makes your contrarian blogging so captivating and buzz-worthy?

The wisdom of crowds is, I think, greatly overrated. Crowds are usually full of crap. So if you see a blog mob happily racing off in one direction, you can be pretty sure that if you go the opposite way you'll find something interesting.

TechMeme, by the way, is a great site to visit if you want to get a quick read on what's going on at the moment in the Internet end of the technology world. But it's a very dangerous site to spend a lot of time on if you're a tech blogger. It narrows your view and promotes rapid-fire me-too-ism. It's better to try to seek out interesting new sources of information, to give yourself some space to think rather than just reacting.

Some bloggers have called you cynical, but many of them fail to see connections that you easily make. What makes it so easy for you to identify relationships that others miss?

I don't really know. Being open to a broad set of influences is important, I think. To me, what's fun about writing - and about thinking, for that matter - is making unexpected connections. When most people write, they get very earnest. They approach writing as if it were work. It's better to be playful, to let your mind and your sentences take chances.

Is user generated content an answer to anything, or does it only accelerate the diminishing content quality problem?

People write blogs and upload photos and videos and tag content because they enjoy it. It gives them satisfaction. There's absolutely nothing wrong with that. But user-generated content does not exist in a vacuum. It competes with other content, and because it's cheap to produce and usually given away free it has a big market advantage. You have to ask yourself what's going to be crowded out of the market - what good stuff are we going to lose. A lot of people seem to think that new digital media represents a break from mainstream mass media. I don't see it that way. I think new media represents a continuation of mass media and a further amplification of some of mass media's worst qualities.

You mentioned studies about political blogs in The Big Switch. From those studies, it seems links, attention, and readership seemed confined and self-reinforcing in some ways. How may search engines (and other gate-keepers) promote the creation of balanced content when people typically vote for content that is aligned with their biases and identities?

That's a good question, but I don't have a good answer. I think what we're going to see is greater personalization in search and other filtering and navigation tools, and in time that will tend to further reinforce biases and push people to have less sympathy for views that are different from their own. I think media personalization is good for search engines and advertisers. I don't think it's a great thing for society.

Some publishing companies already use profit potential to guide what types of content they create and what topics they cover. Could this create a thinning out in many important fields where the economic viability of the publishing in the field is limited?

In the long run, all for-profit publishers are influenced by profit potential. How could they not be? That's not meant as any kind of criticism of journalistic ethics. It's just a simple observation that production shapes itself to the market. So, looking again at the longer term, you can expect that the combination of unbundled content and precisely targeted advertising will mean that some types of content, including some times of very serious, very worthy content, will fall by the wayside or be shunted to a small elite. We may come to look back fondly on the days of bundled content and lots of cross-subsidies.

How far will the shift to publishing profitable topics go. Might we see a weekly (or daily) NYT story on Viagra?

I think it will be more subtle than that, at least for the top papers. What we'll see is a slow but meaningful change in what's published and how it's published as publications adapt to the new modes of information consumption among readers and the new expectations of advertisers.

I just added a subscription based service to access parts of my website. Do you see publishing shifting to charging less for content (using content for marketing) and charging more for interaction? In what areas may selling content without interaction be a viable business model 20 years from now?

I think there will always be niche markets where specialized content carries a high value, and printed books and magazines will probably continue to sell well for a good long time. But for most online publishing, including interactive publishing, a subscription fee is an awfully hard sell.

Increasingly we let machines make decisions for us, which on the surface simplifies things. But what are the hidden costs?

When you let machines take over parts of your thinking, you start to think like a machine. This is the greatest danger posed by the Net. Computers get a little smarter, we get a little dumber, and eventually we meet somewhere in the middle.

Do you feel you have a health records problem, or was Google's recent move into the space guided by profit potential? At some point will people refuse to use the data hoarding ad networks?

There's a huge health records problem - a fatal problem for some unfortunate folks. I think Google sees this as a problem to solve, a problem well suited to its own expertise. I applaud them for their ambition. But I think that using health records as a platform for advertising is dangerous and unethical, and so while I don't doubt Google's good intentions I am very suspicious of how its program will actually play out.

If I was new to the web and wanted to write for a living, where would you suggest I start? What was key to helping you becoming a great writer?

First of all, thank you for the compliment. I think the best way to learn to write well is to read a lot, particularly when you're young and impressionable. If you want to write for a living on the web, your best bet is to find a niche market that's attractive to advertisers, start a blog, and then work like hell. You'll still probably fail, but you never know.

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Thanks Nick. If you would like to read more from Nick please check out his Rough Type blog. Go buy The Big Switch today as well, I promise you will like it.

Quick, Cheap, & Easy Strategies to Dominate Google's Search Results

Following last year's pillage of general web directories, Google reset the PageRank on many article syndication directories to PR3 or PR0. EzineArticles did not get edited, perhaps because they have more stringent editorial guidelines, they were a known market leader, or they were a Google case study. Just about every other article syndication directory did.

About 3 years ago I create a directory of directories so I could keep track of new directories. But very few of the directory owners considered editorial quality. Eventually they started polluting their directories with site-wide links to payday loan websites.

On the paid side some people who had success creating one low quality directory decided to create a dozen more pay for inclusion websites, often cross promoting them with discounts...after you buy one they thank you and offer you the ability to buy inclusion in the other dozen at half price.

And on the cheap end, it got to the point where lots of companies like Directory Maximizer do directory submissions for a dime to a quarter each, allowing you to space out the submissions, mix anchor text, and mix listing descriptions. And while many of these services claim to be "SEO friendly" and offer services in bulk, you can see that a search engineer might not hold the same opinion. :)

By the time a technique is cheaply and reliably outsourced the value has already been diminished or will soon become worthless.

  • lower cost and automation means more people will use the technique
  • the lower cost often appeals to those making lower quality websites
  • the more people who use a technique the more likely it is for search engineers to kill it

Andy Hagans used to charge $900 for doing a couple dozen article submissions, and back when he did it, it was probably worth it. He marketed it to highbrow clients who used it to promote quality website. Lower end webmasters probably could not justify paying $900 for that service.

And you could get a hand rolled product of similar quality to what Andy charged $900 for, but at a price $870 cheaper from We Submit Articles. About a month after I showed Andy that We Submit Articles website, where someone was selling services similar to his for $30, he changed his model to promote linkbait stuff, moving himself up the value chain, creating something that is much harder and more expensive to replicate.

Article submission software and article remixing software came out, only making the issue worse. Andy probably could have continued his old model for another year and been fine, but he knew that Google would eventually pull the rug out from under it. It took a while, but the article directories had their PageRank edited.

Search engineers can't stop everything, but by the time a technique is cheaply and reliably outsourced the value has already been diminished or will soon become worthless.

  • lower cost and automation means more people will use the technique
  • the lower cost often appeals to those making lower quality websites
  • the more people who use a technique the more likely it is for search engineers to kill it

When you think of the web from that perspective it is easy to see why my current business model is so much better than the old model. The community interaction allows for deeper understanding, and helps people move past using just the techniques that are quick, cheap, and easy.

Parasitic hosts and upload sites, social media sites full of spam, endless cross-referencing internal tagging, blog carnivals...all are quick, cheap, and easy. What do you think is the next quick, cheap, and easy marketing technique that Google will kill?

Steve Rubel, from Edelman, the PR Firm Behind the Fake Wal-Mart Blog, is Concerned About SEOs Gaming Blogs

How can a guy who brushes off his own company's overtly underhanded and deceptive marketing behaviors care about what others are doing?

What does get me hot and bothered is when consultants and bloggers propose launching such an initiatives solely for influencing search. SEO, like word of mouth, should be a byproduct outcome, not a primary objective. Any brand that plays in this space should be aiming to create value. Do that and the other stuff will follow.

But the SEO shenanigans for the sake of SEO has to stop. If you're going to play in our sandbox, follow the community's (unwritten) rules.

Using Steve Rubel's broken logic, public relations should be a natural outcome of product quality, and nobody should need to hire his firm to create fake blogs. But that is another story for another post.

One day your writing a fake blog for Wal Mart and the next day you are writing the rulebook for blogging. As long as you are consistent that is all that matters. Just keep writing. ;)

You really need to police yourself before talking about how you are going to police others, and before you write off other fields in their entirety.

Tracking Bogus Google AdWords Conversions

I recently bought a few AdWords ads for Microsoft adCenter's affiliate program. These links were direct affiliate links that headed directly to Microsoft - the searcher never touched my site.

Compare the following 3 AdWords ad campaigns

The first campaign is a strategic one, where I do not mind losing money if it increases usage, which may lead to more links (and better organic rankings) over time. But that second campaign, with a similar number of clicks, never even touches my site and still has a baseline conversion rate and conversion cost similar to the strategic ad group.

Truth be told those conversion sample sizes are so small that it is hard to draw concrete evidence from them, but if I was telling myself that some of the ad sales caused by that strategic ad campaign help subsidize at least some of the cost, then I might be operating under a false pretense. Some of those conversions may have happened anyway.

That third ad campaign consists largely of brand related keywords and a few other somewhat related terms. Notice how the conversion rate is higher. Microsoft recently published research that brand related search terms tend to convert better than twice as well as non-brand terms.

Why is this important? As Google controls an increasing large piece of the online advertiser pie, if you use their analytics, many of those conversions THEY track are falsely tied to their ads. They would have happened even if you were not buying AdWords ads. As far as brand related conversions go, conversions tied to brand phrases typically are not incremental, which means those would have happened even if you were not buying AdWords ads.

You can use direct conversions as a proxy for the value of advertisements, but if you have a large ad campaign and a well known brand, you are likely buying brand exposure more than direct conversions, even if you control your spend on using a CPA metric.

Does Your Golf Club Sweep the Ground?

Sometimes I can drive a golf ball about 350 yards. Sometimes I can throw my back out on a swing and a miss. Sometimes I hit the ball straight up and it comes crashing down hard. I have never had a birdie. But at least I have never hit a bird yet, like Giovanna did once.

One day my wife and I took golfing lessons. The instructor could hit the ball consistently swinging with one arm. Much better accuracy than I had with two. My biggest problem was form. But on practice swings I would have no way of knowing if my form was good or bad because I would swing, think it felt good, then swing and a miss.

If your golf club hits the ground then you know where the ground is. If you consistently sweep the ground then you will consistently hit the ball well. But if you do not touch the ground you do not know how far you are off.

How does that story relate to SEO?

A friend of mine has a bunch of decent domains he wants to build out, but he is afraid to spend too much on links on any of them. Given the field that he is in and that he has some exact match domain names he could probably rank a number of them just by using simple link building solutions like submitting to directories.

He said he did not want to invest too much into any one of them because he had a lot of them to do. I said I recommend over-investing in one of them so you guarantee the thing ranks, such that you get the traffic and market feedback needed to track conversions, test out the effect of making changes, and optimize the conversion process before applying it to dozens of sites.

Setting up one site, ranking it, and tweaking it in for conversion is just like finding Earth with a golf club. If gives you a baseline to work from to ensure you are getting maximal return out of your investments.

It does not matter how bad some of your business ideas are. As long as you are receptive to market feedback and you know where Earth is you can keep growing. For some inspiration, read about how Patrick Gavin went from "marketing the past" to becoming the leading link broker in the world.

Warning Spammers: We Only Promote the Ethical Use of This ____ Generator Tool

When I read must we piss in every public fountain by Dan Thies, I thought it was a great post. But at the same time, as an internet marketer you have to be pragmatic. Which is why I was unsurprised when 6 months later StomperNet sent out an email suggesting that readers could

visit propeller.com and open up 10 unique accounts using different usernames, email addresses, etc.

Use free email accounts from Yahoo, Gmail, etc. to open up the accounts.

Repeat the process for each of the 29 Social Bookmarking sites listed at SocialMarker.com

and then the next email claimed

Are they borderline? Yeah! We said they were. We pointed out in the email that you need to be careful when walking the line with social marketing. Do spammers use similar techniques to the ones Jeff outlined? I'm sure they do - Spammers are always on the lookout for new exploits... but they usually don't need to learn from legitimate marketing teachers to uncover them.

The difference between an ethical marketer and a spammer is a matter of intent. The ethical marketer seeks to profit by providing real value to real individuals. The spammer seeks only pure profit based on the laws of statistics - throw enough people at any offer, and someone will bite.

So you don't think you are telling people to be spammers when you tell them to set up 10 Propeller accounts? What exactly separates those "10 legitimate accounts" people from spammers? I would love to see an explanation about where that line in the sand is drawn.

If you are sending out an email offer for everything under the sun just because you need to trade publicity to be profitable, are you building a real business or actually providing any real value?

primarily what I got was sales pitch after sales pitch, and “new program” after “new program”, and far too many different forums that offered practically no participation by the original faculty members that were the catalyst to my joining.

Almost every internet marketer explains how other people are spammy, but what they do is somehow legitimate. When I was new and naive I may have bought that crap, but how can people claiming thought leader status still be dishing out such blatant lies in 2008?

I see that as silly. Techniques are either effective or they are not. And they carry an associated risk level. I chose to be technique agnostic because it is the only way you keep learning and keep growing faster than the market. Sometimes you only learn to appreciate the opportunity cost of risk after you get a site burned. But then it factors into future decisions.

At least once a month there is a story about how someone got caught spamming. The Guardian ran a story about how Matt Inman got over 100,000 links to a payday loan site by adding links in viral widgets.

That story did not appear because somebody spammed, it appeared because the marketing was so aggressive and overt. Anytime you have thousands of people embedding something someone is going to notice it. If it was done on a smaller scale it could have lasted for years. A few years ago, for about a 2 year period, one of the top ranked mesothelioma sites was there based on links syndicated with web counters.

Forbes sometimes writes stories about how SEOs are spammers and stories about how Google is clamping down on spam. And then they publish a bunch of cheesy lead generation pages on their site that are linked to nearly sitewide via a dropdown box that hides the links.

Do publishers need to keep content and ads separate to be legitimate, as demanded by this random commenter on a story about Ron Jackson working in a domain start up? No they don't. That is just the lie the media needs to push to be viewed as credible. Almost every popular website does reciprocal promotion and has editorial guided by their business interests. But when people can't follow their own advice and create profit, or they need to lie to just to make a buck, they have headed down the wrong path.

I enjoy helping people. But how I was doing it via endless emails was not working. I was worried that I might get some blowback when I changed my business model, so I could offer higher customer value. But largely the reaction was positive. I got numerous emails like this:

I have admired you and your work for a very long time, and not just that, but also your honest no-hype, no-crap approach to doing business online.

it's been my observance that some aspects of SEO and also 'net marketing' are so sleazy that it's not to be believed. even some people who started out 'legit' and made a bit of a name for themselves now have seemed to let themselves get sucked into the hype and associated with some less than ethical behaviours all to make money.

you know what is kind of funny? i keep encountering all these so-called experts, some in person, but most online, and i always ask them: "hey, did you get that book from Aaron Wall? you know, the SEO Book. what do you think of it?" and you know what? almost none of them have bought it. some of them even ask me, 'Aaron who?'. for me, you set the standard, so i find it really odd.

One member instant messaged me telling me "the community is like heaven for SEOs." I have learned a good bit from the forums too. I am surprised how well it has been working out so far. Are some of the suggestions considered spammy? Of course. Use the right tool for the right job.

Back to that topic of identifying spam. If you replaced the word spam with the word profit you would better understand how and why it is policed. Matt Inman's spam simply consisted of using push marketing, viral marketing, aiming it at a large audience, and embedding promotional value for other company assets in it.

When Google partners with large political parties are they actually looking out for your best interests? Google is using push marketing, viral marketing, aiming it at a large audience, and embedding promotional value for other company assets in it. Hmm. Sounds familiar.

Do you have a health records problem? Or is Google solving a marketing problem, helping pharmaceutical corporations push drugs at you based on your genetic flaws? If they are doing push marketing for large established bodies how can they expect anyone else to compete with them without using push marketing?

Build it and they will come...to someone else's site. Be aggressive and use push marketing, or earn 25% of your real market value. Almost everyone who tells you not to spam does not listen to their own advice, or changed their outlook AFTER they got a market leading position. But they didn't get where they are by following their own advice.

Data Visualization & Discovery

I have heard of Last.fm, Pandora, and a few other similar sites, but I really think Musicovery is a cool online music tool.

Once information is online it is hard to make it disappear. Recently a US judge closed down Wiki Leaks. But that did not work out too well.

Scribd's iPaper aims to make it the YouTube of documents. Syndicating content is really easy now, but for most webmasters, in the short term, the value of inbound links is far greater than the value of spreading documents onto other sites.

IBM's Many Eyes is a cool data visualization tool.

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