Microsoft Corp. will aim to strike more agreements for its Web-search software to be included on computers and mobile phones, even though the deals may not always make money, Chief Executive Officer Steve Ballmer said.
“It might still be a good marketing investment for us to make,” Ballmer said today in an interview in New York. The deals may not make “economic sense” at the outset, he said.
Microsoft, Google Inc. and Yahoo! Inc. form partnerships to make their search engines the default setting on computers and mobile phones to attract new users. Google can pay more for the deals without losing money, Ballmer said.
Google, the most-popular search engine, gets an estimated 9.5 cents to 10 cents on average in ad sales from each search, while Microsoft and Yahoo get 4 cents to 5 cents, Ballmer said. That means Google can give its partners 8 cents from each search, while Microsoft may have to lose money, he said.
“Google can bid them to a point where we are not economical,” said Ballmer, 52. Microsoft will probably do a “bit of investment” in those agreements as existing partnerships that companies have with Google and Yahoo expire, he said.
Microsoft handled about 8 percent of search queries in the U.S. in February, compared with Google’s 63 percent and Yahoo’s 21 percent, according to researcher ComScore Inc. Outside the U.S., Microsoft’s market share is even smaller.
Dell, Verizon
Kim Rubey, a spokeswoman for Sunnyvale, California-based Yahoo, declined to comment on how much revenue the company makes per search. Google, based in Mountain View, California, didn’t have an immediate comment.
Microsoft struck partnerships to put its search software on Dell Inc. computers and Verizon Wireless mobile phones this year, beating out Google for the deals. Last year, Microsoft reached agreements with Hewlett-Packard Co., Sun Microsystems Inc. and Facebook Inc. Hewlett-Packard, the world’s biggest personal-computer maker, had a deal with Yahoo.
The agreements mean that new computers come preloaded with a toolbar that lets them use Microsoft’s Live Search. The search engine also appears on the home screen of some Verizon handsets and is included when customers download Sun’s Java software.
Ballmer reiterated that he’s interested in a search partnership with Yahoo because it “makes all the sense in the world.”
Ballmer said earlier today at a conference that he has spoken with Yahoo CEO Carol Bartz and that they will talk when it’s appropriate.
“What’s she been there now -- all of a month and a half, two months?,” Ballmer said in the interview. The Web-search industry has been harder for him and other executives to learn than most businesses, Ballmer said.
Microsoft, based in Redmond, Washington, rose 18 cents to $17.14 today in Nasdaq Stock Market trading. The shares have lost 12 percent this year.
Showing posts with label PubCon. Show all posts
Showing posts with label PubCon. Show all posts
Thursday, March 19, 2009
Tuesday, March 17, 2009
Gasta News: Playboy advances its digital turn
Playboy's latest 10K filing offers some new evidence for a claim the company has been making in recent weeks—that it is throwing more resources into the digital side. Offering some data that didn't come out in its fourth-quarter earnings reports or in the company's earnings call, Playboy (NYSE: PLA) (NYSE:PLA) said it increased production costs for exclusive online/mobile programming by 25 percent in 2008, to $7 million. Online/mobile production costs now account for 14 percent of total production costs, up from 9 percent in 2007. Much of the spending was on “webisodes,” typically are three- to five-minute clips, like Interns, a series rolled out at the end of last year about the lives of three college interns at Playboy's New York City offices. The series was sponsored by Audi's Quattro and included content sharing on Quattro sites as as well product placement.
Playboy has struggled with its online identity, and has chosen to stick with its “gentlemanly” brand of adult entertainment as a growing number of hard-core and amateur porn sites pop up. The company's online revenue declined 24 percent last year to $15.6 million.
Playboy has struggled with its online identity, and has chosen to stick with its “gentlemanly” brand of adult entertainment as a growing number of hard-core and amateur porn sites pop up. The company's online revenue declined 24 percent last year to $15.6 million.
Tuesday, November 18, 2008
Gasta Ready for the New search3.0 wave
At PubCon, Bruce Clay, Inc. President Bruce Clay presented at a session entitled "Top-Shelf Organic SEO" in which he discussed the approaching future of SEO as search engines evolve into more modern ranking methods. Bruce was good enough to take the time to speak with our own Michael McDonald in a one-on-one interview, which can be viewed in the video below.
Behavior Based Search
Bruce says that everybody who does a search will end up with different search results based on their prior search history. Personalization is going to be "web-wide" using third party cookies and things.
He provided a specific example of a search for "java". Some are looking for programming, some are looking for the beverage, and some are looking for travel information. Theoretically, the search engines will know that and provide results accordingly.
"We can't search for any term and look at rankings because I can get different results than you for exactly the same query. So that's going to change a lot," he says. It doesn't matter if you're logged into Google or not. Bruce believes that personalized results will be coming out within the first quarter of next year.
Intent-based Search
Google has been looking up your IP and revising results based on IP. They know where you're located and can make assumptions about the intent of your search. As you get more into intent-based search, it's going to change the way pages rank, Bruce explains. "The page that ranks for a shopping query is an entirely different architecture than the page that ranks for a research query."
Where Does this Leave the SEO Crowd?
"Ranking is dead," says Bruce, recalling his words from his presentation. Going forward, he says you're going to have to look at analytics, measure traffic, bounce rates, action, etc. SEOs will have to ask themselves questions like:
- Did I get the conversion I was after?
- Did I really deliver on the promise of SEO?
Bruce thinks that in the first six months of 2009, we're going to see a lot more implementation of behavior and intent-based search leading to a mindset of "ranking is dead, and traffic is all that matters."
Universal Search
Bruce ClayBruce says this will be the most significant factor of 2009. Google looks at soundtracks and convert them to text. They can jump into the middle of videos, scan sites to determine if you have video/images or not. There are a lot of variables in universal search, and some of these variables tell how engaging your site is.
If you don't have video and your competition does, Bruce thinks we're going to see a big shift in rankings. He thinks if the top ten sites don't have video, they may lose their ranking over night.
Bruce notes that Google has been testing some of these variables, and will really start testing them a lot more in the first quarter, once the holidays are out of the way. He mentions the criticism Google took over the Florida Update, which took place in the month of November, and believes the company wants to avoid that again. He thinks we're going to see a lot of "Google Dances" early in the year though.
The Impact on Spam
According to Bruce, this is all going to really help Google fight spammers. He says it will affect the way scrapers and spammers work, because if they are just scraping text, they wouldn't be able to rank.
He also says that all of the variables that come into play may diminish the value of linking, which will certainly not help the spammers' cause either. He says it will be a big win for Google, and big win for the searchers.
There's no question that if everything Bruce talked about comes true, the SEO world will be turned on its ear. Bruce says, "If you're not ready for it as an SEO, you're gonna lose."
Behavior Based Search
Bruce says that everybody who does a search will end up with different search results based on their prior search history. Personalization is going to be "web-wide" using third party cookies and things.
He provided a specific example of a search for "java". Some are looking for programming, some are looking for the beverage, and some are looking for travel information. Theoretically, the search engines will know that and provide results accordingly.
"We can't search for any term and look at rankings because I can get different results than you for exactly the same query. So that's going to change a lot," he says. It doesn't matter if you're logged into Google or not. Bruce believes that personalized results will be coming out within the first quarter of next year.
Intent-based Search
Google has been looking up your IP and revising results based on IP. They know where you're located and can make assumptions about the intent of your search. As you get more into intent-based search, it's going to change the way pages rank, Bruce explains. "The page that ranks for a shopping query is an entirely different architecture than the page that ranks for a research query."
Where Does this Leave the SEO Crowd?
"Ranking is dead," says Bruce, recalling his words from his presentation. Going forward, he says you're going to have to look at analytics, measure traffic, bounce rates, action, etc. SEOs will have to ask themselves questions like:
- Did I get the conversion I was after?
- Did I really deliver on the promise of SEO?
Bruce thinks that in the first six months of 2009, we're going to see a lot more implementation of behavior and intent-based search leading to a mindset of "ranking is dead, and traffic is all that matters."
Universal Search
Bruce ClayBruce says this will be the most significant factor of 2009. Google looks at soundtracks and convert them to text. They can jump into the middle of videos, scan sites to determine if you have video/images or not. There are a lot of variables in universal search, and some of these variables tell how engaging your site is.
If you don't have video and your competition does, Bruce thinks we're going to see a big shift in rankings. He thinks if the top ten sites don't have video, they may lose their ranking over night.
Bruce notes that Google has been testing some of these variables, and will really start testing them a lot more in the first quarter, once the holidays are out of the way. He mentions the criticism Google took over the Florida Update, which took place in the month of November, and believes the company wants to avoid that again. He thinks we're going to see a lot of "Google Dances" early in the year though.
The Impact on Spam
According to Bruce, this is all going to really help Google fight spammers. He says it will affect the way scrapers and spammers work, because if they are just scraping text, they wouldn't be able to rank.
He also says that all of the variables that come into play may diminish the value of linking, which will certainly not help the spammers' cause either. He says it will be a big win for Google, and big win for the searchers.
There's no question that if everything Bruce talked about comes true, the SEO world will be turned on its ear. Bruce says, "If you're not ready for it as an SEO, you're gonna lose."
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