Getting the Yahoo! and Microsoft Search Alliance

Recently, I wrote about one of the main impacts of the Yahoo! and Microsoft Search Alliance being the transition of Yahoo! Search to the Microsoft adCenter platform. For search marketers this is a fairly significant consequence of the Search Alliance, but for the searcher, the changes will not be as drastic.

So is anything going to change for the searcher? If yes, what? More importantly, when?

Ins & Outs

The short answer is, not really. The searcher is still going to benefit from Yahoo! and Bing, with their individual offerings. Yahoo is not going to suddenly become obsolete and transition completely into Bing.

Quote from the Search Alliance website:

When the Yahoo! and Microsoft Search Alliance is implemented, both companies will continue to have differentiated consumer search experiences. However, Microsoft will manage the technology platforms that deliver the algorithmic (powered by Bing) and paid (powered by adCenter) search results.

What this means is that Yahoo will still look like Yahoo, but the search results will be ‘powered’ and thus syndicated by Bing, much in the same way that Google syndicates its search results to AOL.

Yahoo will try to give its search results a bit of a twist ‘by innovating around the listings it receives from Microsoft by integrating Yahoo! content, shortcuts and tools.’

The really simple answer for consumers is that unless they plan on buying shares in either of these companies, the intricacies of the search alliance will not be that obvious to them. The implications of Microsoft receiving a 10-year licence to certain Yahoo! search technologies thus making Bing and Google the principle ‘big II’ search engines will be interesting to say the least.

On the flip side, the search advertiser who is putting their dollars into Yahoo has a little bit more to worry about. The ramifications are slowly starting to become clear – more on that soon!

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Yahoo & Bing Merger – The Pain Awaits

The Pain Awaits

In mid-2009, the Yahoo-Bing merger became final and a wave of speculation hit the market about what it meant for the search industry, searcher experience, market competition, SEO & PPC implications etc.

We are now in Q2 of 2010 and the hype has died down, people got used to the merger and the key focus seems to be on Bing market share relative to Google. The irony is that slashing two engines into one was deemed the best strategy to give Google a run for its market share. Currently, market share figures for the US look as follows:

According to results published by Experian® Hitwise® on March 10, 2010 Bing’s share of search increased for a 3rd straight month, with share of search sitting at 9.7% compared to Google’s 70.95%.

Looking at market share data is fairly rudimentary and no less painful than when there were three major search engines in the ring. What many of us may have forgotten or chosen to block out is the fact that there are far more tangible implications of this merger awaiting us. Bing and Yahoo have 24-months to make the merger complete.

According to the Yahoo website, the split of services will be as follows:

Microsoft will be the provider of web, video and image results to Yahoo!, and the basic list of results provided will be the same as those displayed on Microsoft’s Bing engine. Microsoft will provide the search advertising platform (adCenter) that will be used by both companies, and will manage the search advertising marketplace.

Ultimately this means that Bing has 2 years to roll Yahoo’s Search Marketing program into its own, making Yahoo’s Paid Search obsolete.

Whoa, No More Yahoo Search?

A reality that all advertisers will have to face is that Yahoo Search will merge into Microsoft adCenter. What this means for both advertisers and agencies is that more focus should be placed on Bing to begin understanding the interface better, increase budgets and develop a more advanced Microsoft adCenter strategy.

Currently, the reality for many advertisers is that Microsoft adCenter gets the left over budget, while Google and Yahoo receive the bulk – this will need to change when Bing becomes the 2nd major paid search marketing platform after Google.

Expecting More from Bing

There are a number of reasons that advertisers and agencies alike may feel a sense of trepidation about the implications of this merger and Bing certainly should consider doing something about it in the near future. Otherwise Google AdWords may simply take the lion’s share of Yahoo Search’s previous budget allocation.

  • Search Volume: Getting volume out of Bing is sometimes like pulling teeth.
  • Poorer User Interface: The user interface is not intuitive, nor is it user friendly. In fact, between the big three, it is quite possibly the worst user experience.
  • adCenter Desktop Tool: The tool does exist but a number of technical issues plague it thus often rendering it useless. This is incredibly frustrating as it becomes virtually impossible to work on large accounts without the possibility of doing bulk uploads. A Microsoft tool riddled with bugs… what a surprise!
  • Customer Service: Getting anything organized with Bing requires the utmost patience because turnaround times are incredibly long. If it is billing associated, don’t hold your breath.
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Ad Sitelinks – Better for You or Google?

In late 2009, AdWords launched a new feature designed to ‘increase choice and relevancy in search ads’ by allowing you to provide additional links to deep content on your website.

If you are not yet familiar with sitelinks or you have seen it and wondered how to set up something similar in your AdWords campaign, the reason may lie in the fact that sitelinks is only available ‘for advertisers whose ads meet a certain high quality threshold.’ That is Google talk, in layman’s terms, if you are not spending enough money on your AdWords account, you shall not get access to sitelinks quite yet.

Here is an example of sitelinks in action, for the search phrase ‘hilton hotels’:
Ad SiteLinks

You can see the ad sitelinks in the top circled ad which happens to be the official Hilton website. Looking at the SERP result, the Hilton brand covers the most important page real estate with the paid search SERPs as well as the organic SERPs. Given the authority of the Hilton website, there are also organic sitelinks visible in the SERPs, which then bodes the question:

If the search is for a branded phrase, which indicates intent and knowledge of the Hilton brand and the organic SERPs are already strong, is it really necessary to spend more money on PPC sitelinks?

Warning: Proceed with Caution

Sitelinks may do wonders in increasing click-through rate (CTR) on branded and non-branded terms but is it capturing the right type of searcher?

Ad sitelinks will not be a panacea for all advertisers, so if you do implement this feature monitor and test carefully. You cannot simply switch on the ‘on’ button and leave it at that – if you do, you may see expenses increases without a direct correlation in sales increase.

Think about the following 3 factors when implementing site links:

  • Organic links vs. paid links – the reality is that these new paid search ad sitelinks so closely mimic organic results that searchers may not themselves recognise the difference. This may result in repeat visitors who are perhaps already customers or not in the market to buy, clicking on your paid sitelinks.
  • Beware of Tire kickers – suddenly you are giving searchers more options to click on your website. Even though this may have an initially positive impact in increasing your CTR, pay careful attention to your cost-per-acquisition. If this number starts to increase, you may have a problem on your hands.
  • How optimised are your pages – traditionally you have one landing page link in your paid search ad, now you can have up to four. Before you go crazy adding sitelinks to your paid search program, consider very carefully the pages to which you will be driving the searcher. Will they capture the attention of the searcher, do they have a clear path and some type of call-to-action or will these pages ultimately lead to a wasted click?
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Your PPC Client Resisting Change?

It appears that there are still a number of people out there who implement a paid search campaign in AdWords and then once it is operating at an acceptable level proceed to switch their minds off and forget about it.

Once they have ascertained that the existing CTR is acceptable, CPC is not bad and conversion rates going well, depending on their relative definition of ‘well’, they become opposed to the idea of changing anything, to avoid disrupting this status quo. What this means is that ad copy goes through little revision, if ever, and landing pages, well, let’s just say landing pages are as new as the 90s.

In the game of paid search where incremental changing, testing and analysing are required elements to increase performance, this can be a major setback. How do you deal with a client who simply does not wish to send a ripple through calm waters?

1. Persevere & Educate – It is imperative that you show your client the value of testing in PPC. Present them with white papers, industry citations, case studies that discuss the importance and successes of A/B Testing, of both landing pages and ad copy.

2. PPC Success is Relative – Help your client understand that ‘good’ in paid search is relative. How do you know that your current ‘good’ conversion rate is the best it can possibly be? You don’t. For this simple reason you should at every opportunity push forward the performance of the account.

3. ‘Help me, Help you’ – Every client will have paid search goals that tie into bigger business goals. If the goal for the quarter is to grow or reduce customer acquisition cost, help them see how revised landing pages that obey best practices may be exactly the change required in order to reach those goals & KPIs.

4. Testing is Safe – With technology such as Google Web Optimizer, you do not have to forgo the current ‘good’ landing page. It is as simple as setting up a Google Optimizer test – the winner takes it all. If you see the new design blow the old landing page out of the water, the business case for changing the landing pages becomes a lot more compelling.

5. Make it Easy – Some clients are so busy that the notion of organising new landing pages is a task with which they simply do not wish to deal. If this is what is preventing the recommended changes from moving forward, try to present alternatives. Ask the client whether they would be open to outsourcing landing page designs rather than doing them internally. If this is compelling to them, put together a quote and take this task out of the client’s hands. You can then have more control over the design process and you remove the burden for your client.

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Rushing into Paid Search

Rushing into PPCSometimes clients launch into paid search advertising, leaving the decision making to the agency without fully understanding the strategy being implemented. They nod, agree and seem to ‘get it’ so you proceed with the project, implementing structures that have been agreed upon, setting up the appropriate reporting to report on business goals and KPIs, which the client has identified as important. The project starts to move forward and then 2 months later, the client drops the bomb and says:

  • The current paid search account structure does not fit our internal reporting model
  • We would like to modify the current goals, our CPA goals have become more aggressive – CPA target is now 50% lower
  • We wish to change our paid search online strategy, radically

Fools Rush In

The result of any of the above points can easily spell hundreds of hours of wasted work, particularly if it is a large PPC account that uses intricate campaign segmentation and geographic targeting.

This happened because at the start of the project the client just did not ‘get’ paid search. Nor did the client appreciate that PPC advertising goals tie in directly to structure, set up, design of campaigns & ad groups. The client will certainly not be able to grasp the number of wasted hours on a set up that they have practically declared null.

Get on the Same Page

A typical problem of launching projects is that once the client has paid some money upfront or a percentage of the costs, there is an expectation that things will get rolling right away. There is a pressure from the internal sales team to get the project going in order to develop a good business relationship with the client in those first 2 months of operation. This generally means everyone comes out guns blazing, both the agency and the client.

Strategies are discussed. Things are rushed. Tactics are implemented. The client tries to ‘get it’. But doesn’t. Two months later, after putting two and two together, the client demands radical change.

It is critical that at the start of the paid search project, the client is taken through a process of education. Just because a company has been running a PPC campaign for 2 years does not mean that the people now responsible for that campaign know the first thing about PPC.

A safe assumption is that the client knows very little about paid search and even if they think they know about PPC, remember that you are the professional being paid to implement the services. Ascertain, at the start of the project what the level of understanding is and proceed accordingly with the education required. Do not rush into a project because the Chief Marketing Officer is pressuring both you and his internal team to do so. At the end of the day, that internal team reports results to the CMO – those results will be much stronger in two months if you push back a bit, put your foot on the breaks and ease into the project, making critical strategic and tactical decisions only when it is clear that the client fully understands the implications of those decisions.

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