Why Search Engines are Acquiring Agencies

Google has acquired DoubleClick for $3.1bn, Double click is an Ad company working with Advertisers and Publishers in Ad business. They developed a DART product respectively for Advertisers and Publishers to help target and manage campaigns to meet their respective goals.

Google is already a leader in Targeted Advertising both Text Ad/Image Ad display. They have great products such as Adwords & Adsense for Advertisers & Publishers respectively; this technology is for anybody and requires little or no human involvement from Google’s end.

The main question is why did Google Acquire DoubleClick? Some of the reasons I can think for are:

1) Google took inspiration from Overture to build an Ad system to display relevant text ads based on search terms. They built a system and revolutionized it in a big way. Now they might be thinking of repeating the history again with DoubleClick. DoubleClick has DART, which Google might want to make it enormously scalable for anybody to just plug and play. They might want to keep the human intervention to the minimum level and let technology work the maximum, mainly to reduce cost which ultimately benefits the end user.

2) The Ad business is growing at a rapid rate, with internet overtaking Radio and competing with Print. Ad Agency business is really on the rise. Google wants to have a share of that pie too. It not just wants to be a medium to offer and manage inventory, they would also want to actively work with advertisers and publishers to meet their end goals & take major share of the pie.

3) Most Agencies managing Ad business apart from few good ones do not have long term satisfied customers. Most companies are looking for more accountability and reliability from Agencies. Google is more trusted than anyone in the online industry.

4) Google being the leader in the Online Ad selling; its move towards vertical integration is very natural.

Google would be using its technological expertise in combination with DoubleClick’s business acumen & client servicing capabilities to reach it goals.

Yahoo has in acquired Right Media to be able to compete evenly with Google.com. To state another interesting acquisition is Google acquiring Performics, since Performics is a part of DoubleClick. Performics is a company that sells SEO services to its clients. So, formally Google has acquired a SEO Company, I am sure its business would increase whether Google actually supports it or not.

What will Google do with Performics is yet to be seen….

Pay Per Action Fraud

Google has started inviting advertisers for its affiliate network model. This a entry into the affiliate market, Google will definitely take a share of the total market revenue. This is a good opportunity for advertisers looking to pay only for the incoming leads.

However we have to wait and watch how effectively Google can monitor and prevent fraud in the CPA model. Some issues or concerns which arise out from the PPA program are:

1) The publishers are totally unaware of the business model of the advertisers. So it is up to Google to display Ads in relevant sections of the site.

2) For B2B advertisers, where leads generated are very low in quantity & high in value, publishers would be unwilling to display PPA ads as revenue maybe uncertain, inconsistent & less attractive.

3) Publishers have to really work hard to maximize their revenue through referral ads by testing & displaying Ads in the right sections of the site. Many publishers might be unwilling or incapable of doing so.

4) More MFA sites for referral ad revenue would increase… These spam web pages would make promises of advertisers’ product which may not be real.

5) Advertisers have to pay for junk leads. In traditional affiliate model there can be higher control of quality of leads from the affiliate sites.

Internet Businesses in Vietnam

Internet businesses in Vietnam is at growth phase, some businesses are decade old such as vietnamworks.com, but most are very new such as travel portals, ecommerce portals.

Online businesses succeed only with a strong revenue/business model that creates a genuine value to the consumer/user by making a strong impact in reducing the demand and supply gap in the industry.

Online businesses cannot grow just on advertising revenue that relies on worthiness of their website content. Neither it can grow by generating traffic and selling their webspace.

I am a regular reader of the latest happenings on online world, both in Vietnam and world wide. digitaltrends and Vnexpress are some of the sources that provide up to date information on the latest news on Vietnam Online Industry.

Recently you could read about companies getting funds from various VCs for their businesses. This is the time where everyone and their mom and pop are looking to start a online businesses. We need to wait and see how many sustain and how many fall back

SEM & PPC Campaigns – Analysis & Reporting is the Key to Effective Management

There are lot of companies such as Pinstorm, Group M & other agencies managing Search Engine Marketing Campaigns on Google AdWordsOverture, MSN Ad center & other smaller PPC Engines.

The Key to effective management is strong reporting and use of analytical methods to mine history data and generate reports that can effectively help in better improving campaigns.

Analysis using excel is good enough for most campaigns by using built in excel features such as Pivot Table, V-look up etc.

The main benefits of analysis can be very interesting such as getting an insight into the user behaviour and their nature. For instance suppose your analysis shows that your brand term generates most clicks then your offline marketing is helping to generate more online visitors.

Also it can show that some set of keywords on your AdWords Accounts have more conversions or clicks from your content target ted campaigns. Then you could approach websites that have similar theme to these keywords for online display advertising, since you are confident of receiving quality traffic.

Similarly by digging into the keywords in your accounts & campaigns and analyzing your inferences can benefit other forms of advertising/marketing.