Sunday, 16 October 2011

Marketing Pilgrim Published: “Are Google’s Local Efforts in Trouble?” plus 3 more

 

Marketing Pilgrim Published: "Are Google's Local Efforts in Trouble?" plus 3 more

Link to Marketing Pilgrim - Internet News & Opinion


Are Google's Local Efforts in Trouble?

Posted: 14 Oct 2011 07:43 AM PDT

Google is often given the edge in taking control of the whole local discovery thing. Considering recent developments that may not be the case at all.

The short term conventional wisdom regarding the new iPhone 4S is going some way to changing that. Its impact on the mobile world is that the voice recognition "engine" for the smartphone, Siri, is going to be a local search "killer app". Google is responding in a way that seems to point to their need to make sure that their version of "local" is better.

Google has announced that they are now using another way to update Google Place pages. As put by Jon Mitchell of ReadWriteWeb

Google just launched a more streamlined process for updating small business listings on Google Places, but it asks forgiveness instead of permission. Instead of requiring owners to manually update the listing, Google Places will now automatically update with user-submitted info or updates to another source on the Web that Google identifies. When a listing is updated, the system will notify the business owner of the change by email.

What we don't know for certain is where these updates are coming from (Attention experts: feel free to tell us more in the comments) and one wonders if there is room for any local information foul play which has become an local SEO pastime of sorts.

So where does Yelp fit? Well, one of the sources for Siri's data is Yelp. Here is some more insight from local search expert Mike Blumenthal

Interestingly the current Siri app pulls data from a wide range of data sources to answer your questions. That is true with business listing data as well. Depending on the local search it might show results from Yelp, Yahoo, CityGrid, Localeze or BooRah. I presume that it uses even more sources than I have so far discovered and it appears to be agnostic as to where it gets its data. Siri also seems to mix and match sources when necessary.

Blumenthal also checked in regarding the changes in how Google Places is updated.

Yesterday Google Places announced on the LatLong Blog that they would automatically update claimed listings more quickly with information from trusted third parties [and end users] if Google thought the information was more accurate than information that was in the Places Dashboard.

The program's goal is to improve index quality. If implemented carefully it can work. It is not clear how abuse proof program is and how much trust Google will put in end user edits. Obviously many of those, if not properly vetted, could create a whole new spate malicious activity.

If you would like to read even more of Mike's thoughts on Siri check out his Siri love letter.

In the end it appears as if Google is working to wean itself off of certain local data sources with Yelp being one that they would like to create some distance between for obvious reasons. With this strategy, however, there are risks for sure.

I don't have any evidence of this but one can pretty quickly surmise that Yelp is one of the companies that carries a pretty large target on it around the Googleplex. Right now though Google's voice recognition doesn't seem to be as smooth as Siri but the average Android user is used to clunky. iPhone users use the iPhone for a variety of reasons and one of those is that it is usually a smoother interface on all fronts. Android is usually playing catch up but that's to be expected. The idea of Siri making Yelp a bigger player in the local space must be maddening to Googlers like Marissa Mayer.

The trouble with this local battle is that Google has been expected to be the local business leader but it never seems to make a push to get far ahead of the field. It has all the components to do it. It has Places, it has Android but one thing it never seems to truly have is a plan. At least not one that that is easy to see and moving them forward all the time. Now they are starting to look like they are reactive in their local approach rather than proactive which often indicates that they are not in a position to lead the local push.

In the end, this move by Apple to use Siri could spell serious trouble for Google in a space that is critical for the future of the search giant. Whether it happens today or in the next few years, mobile will be a very large component of any online effort. The spread of smartphone ownership is making that more of a reality than just a prediction.

If Google fumbles the local search market that could be a turnover that could be a game changer for sure. Do I think it is going to happen that way? I'm not saying yet because it is still early. What I will say though is that it looks like Google may be more on their heels than I imagined when it comes to the mobile space. Just that possibility is enough to put everyone on alert that the local game has never been more up for grabs than it is now.

Your thoughts?


Google's Third Quarter Revenue Up 33% Year Over Year

Posted: 14 Oct 2011 05:12 AM PDT

Google gets to have all the fun especially when it comes to quarterly earnings reports. Rarely is there any bad news and the third quarter of 2011 was no exception. As Larry Page reports from the Google investor relations announcemnent:

"We had a great quarter," said Larry Page, CEO of Google. "Revenue was up 33% year on year and our quarterly revenue was just short of $10 billion. Google+ is now open to everyone and we just passed the 40 million user mark. People are flocking into Google+ at an incredible rate and we are just getting started!"

Maybe it's consistent quarterly results like these that draw the ire of those looking to bring Google down through government intervention. The biggest worry Google usually has around these calls is how negatively people will react to the size of their quarterly increase. When people complain that you didn't grow enough rather than jumping on a quarterly loss it can make these calls kinda fun I would guess. Nice problem to have huh?

Business Insider summed up the report with this:

Here's what Google reported vs. expectations:

Gross revenue: $9.72 billion vs $9.60 billion expected (by Citi's Mark Maheny)

EPS: $8.33

Non-GAAP EPS: $9.72 vs. $8.74 (consensus)

Net revenue (- TAC costs): $7.51 billion vs. $7.21 billion (consensus)

Net income: $2.73 billion

Google Sites gross revenue: $6.74 billion vs $6.67 billion (Citi).

Google Network gross revenue: $2.60 billion vs. $2.61 (Citi).

Operating expenses: $3.28 billion, or 34% of revenues. That's versus $2.19 billion, or 30% of revenue, last year. So it looks like the hiring spree is still ongoing. In fact, Google added 2,585 people during the quarter, bringing headcount above 30,000 for the first time.

For a historical perspective here is a chart showing revenue growth over the past two years. Pretty amazing.

Once again, this is the stuff of envy but, let's face it, we need Google to be performing both as an industry and as an economy as a whole. Imagine if Google reported a real problem what the shockwave ripple effect would be throughout the economy? That's one thing we can ill afford at this time so three cheers to Google's success.

Let's hope the engine of the online economy keeps humming along in Q4 as well. Do you agree?


Global Ad Spend Expected to Hit $500 Billion

Posted: 13 Oct 2011 01:09 PM PDT

Though the economy still has us all singing the blues here in the US, eMarketer says that global digital ad spending will continue to shine on through. The rough estimate is $500 billion spent by the end of the year thanks in part to the rise in mobile marketing.

As you can see from this chart (over there –>) North America is responsible for the largest chunk of the spend and that trend is expected to continue. However, Asia, Latin America and the Middle East are all making their move.

Asia, in particular, is being influenced by mobile marketing. It's one of the areas where mobile devices are the primary means of accessing the internet and though they only sit at about 55.4% penetration right now, that number should rise to 73% by 2015. Says eMarketer, that's "an eye-popping 2.9 billion mobile phone users."

The rise in mobile usage outside of the US, also means a global change in the demographics of the average user. In some areas, the average user will be older or younger than here in the US and often, not as affluent.

eMarketer says that mobile ad spending in the US alone will hit $1.23 billion this year with China heading for $1 billion by 2014.


Ebay Prepares to Transform the Online Marketplace with X.Commerce

Posted: 13 Oct 2011 12:02 PM PDT

eBay wants to transform the way we sell things on the internet and believe me, there's not a drop of sarcasm behind that statement.

Technology has changed everything about the way we shop, but it seems like the retail industry is always rushing to play catchup. eBay says it's time to get ahead of the curve, and to that end, they've created X.Commerce.

For developers, X.Commerce is the key to creating cutting-edge, apps and tools that will help people shop better, faster, and hopefully, more often.

For merchants, X.Commerce aims to be a one-stop shop for selling tools and solutions.

For marketers. . . well, it's a little too early to tell how it will effect your job, but it's probably going to be good.

For awhile now, eBay has been slowly positioning itself as more of a large-scale retailer and less of an auction site for naked action figures. They're trying to become Amazon, which is ironic since Amazon got a little eBay-like when they started buying and selling used goods.

In order to entice developers to play along, X-Commerce has a community section that promises free blogging space, a forum, profiles and directories (to help freelancers get hired by others) and even a point reward system for a coming Q&A project. Simply sign up and take the X.Commerce Pledge. All that's missing is the secret decoder ring, which takes on new meaning in 2011. (Okay, a little sarcasm there.)

Putting my natural suspicious nature aside, I have to say I believe in everything X.Commerce stands for. Here are the lines from the pledge:

We believe that merchants should harness technology, not the other way around. Technology solutions should be future-proof and meet their needs, not enslave them with confusion and costs.

We believe that developers should have one place where they can plug in, get the latest and greatest tools they need to build killer apps and features, using proven code.

We believe in helping all merchants and developers compete, save time, share ideas, grow, and frankly just make more money—faster.

And we're realists; we know we can't do it alone. Things are changing constantly, new ideas and technologies crop up daily. The customer is in control. The notion of "build it and they will come" is dead. To win in the commerce game, we need to combine forces, roll up our sleeves, stay caffeinated, and shape the future of commerce.

We pledge to make this happen in an open, transparent, and collaborative way. After all, isn't that the way it should be?

That really says it. I especially appreciate the line about "build it and they will come" being dead. Every week, I see newbies jumping into the online marketing game with the idea that they'll build a website tonight and be rolling in cash by the end of the month.

It's never been that easy, and technology is, in some ways, making it harder. It's not enough to sell items on a website. Now you have to have mobile, video, and social, too. I don't think we'll ever build a product that is "future-proof," but it would be nice to have a shopping experience on my tablet that is nothing like the one I get on my PC.

That's the idea behind X-Commerce and I can't wait to see what the developers come up with. Just don't stop running as an auction site, eBay, at least not until I complete my collection of Hardy Boys Casefiles.

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