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Lasting Impressions Blog

| By Lisa Picarille
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Archive for July, 2005

Big Events?

July 29th, 2005

If you’re over 30 you probably have at least some vague recollection of this day 24 years ago. You or parents were likely glued to the television (just like over 1 billion viewers in 74 countries) to witness the marriage of Prince Charles, heir to the British throne, to a young English schoolteacher named Lady Diana Spencer, as they wed in a grand ceremony at St. Paul’s Cathedral before 2,650 guests.

Here are a few exciting things happening right now in the world of online marketing. You make the call as to which (if any of them) most of us will remember a quarter of a century from now.

Judge bans Google from poaching Microsoft exec

Two types of mobile searchers

A couple of entries about corporate blogging by Mark Cuban

LookSmart losses widen

Yahoo recruits IBM talent as search war looms

A new program that rewards affiliates

Google tying to patent ads in RSS feeds
View the patent here.

Online adspend on real estate to reach $1.8 billion

Let me know your latest news. lisap@revenuetoday.com

P.S. A fond farewell to someone special.

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X-mas in July

July 26th, 2005

It’s nearly the end of July and you know what that means. Thoughts of sleigh rides, turkey dinners, mistletoe, beautifully wrapped presents under the perfectly trimmed tree and the jolly old fat man in the red suit.

Well, these might be your thoughts if you edited a quarterly publication and were currently working many, many months ahead to get out the issue that will be in your readers’ hands during October, November and December.

While, you’ve been on the beach or slathering on the sunscreen poolside or enjoying a family camping trip, I’ve spent the better part of the last couple of weeks talking with merchants, affiliates, and online marketers about what’s going to be hot during the holidays. It’s going to be an exciting time and by most estimates even bigger for online marketers than last year.

Consumers spent a whopping $8.8 billion in online shopping purchases during the 2004 holiday season, a 24 percent increase over the year-ago period from Thanksgiving through December 27, according to VeriSign.

The average price of an online purchase through Wednesday, December 22, 2004, reached $178. Additionally, the final five shopping days to Christmas accounted for $1.5 billion in online purchases, according to VeriSign.

Other estimates claim that between Dec. 13 and Dec. 19, 2004 consumers spent $2.45 billion online, an increase of 57 percent over 2003, according to ComScore Networks.

For 2004, total online sales reached $69.2 billion. While that turns out to be less than 2 percent of all retail sales, it’s a huge jump (23.5 percent) over 2003. Analysts believe the online channel is likely to account for 7 percent of all retail sales by 2010. That’s a potential increase of nearly $200 billion.

This is all great news for the online marketing community and the perfect motivation to be prepared – even if the mercury is still in the triple digits. Once, I completely cool down from having attended a wedding in 107 degree heat I promise to get completely into the holiday spirit.

Ho, ho, ho. Tell me about your online marketing strategy for the holiday season. lisap@revenuetoday.com

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Earn Baby, Earn

July 22nd, 2005

Confession time. I’m a former high tech business editor who doesn’t really like numbers. I’m a huge sports fan who hates all those pesky statistics. I’m a not even good at balancing my own checkbook. Dare, I admit it? I really hate math.

It’s not that I’m bad at math. I’m just lazy about it and don’t like to deal with all those numbers. I’m more about the words and less about the numbers. Though, I’m lightening fast at calculating percentages on sale items at Nordstrom.

But for two weeks out of each quarter I turn into math geek. I’m like an MBA-wannabe and I spend hours pouring over the financial reports and earnings statements of my favorite and not so favorite companies. I truly love earnings season. Maybe it’s the reporter in me; my inquisitive nature. I feel like a forensic financial sleuth trying to uncover clues that will reveal the actual health of a company. Sometimes I make a spreadsheet to compare earnings. Shhh. Keep it down.

And, I particularly get a kick out of comparing the actual financial statements the press releases the company’s send out for media consumption. It’s fun to see what numbers are left out of the news releases in order to put a more positive spin on the results.

So, with Google and Microsoft both announcing earnings this week, it’s been nothing but a financial fiesta for me.

Let’s start with Google. Almost all of the search giant’s revenue comes from online advertising dollars and for it’s second quarter of 2005, ended June 30, Google reported record revenue of $1.38 billion – a whopping 98 percent (that’s nearly double folks) year-over-year increase from the same quarter last year. Quarterly profits were $342.8 million, or $1.19 per share. That’s a fourfold increase from last year’s 30 cents per share earnings.

However, that fell short of analysts’ expectations. Analysts predicted that the company would earn $1.21 per share, according to Thomson First Call.

Google’s shares reached a high of $317.80 on Thursday before retreating slightly to finish at $313.94, up $1.94. But the shares plunged $20.79, or 6.6 percent, in extended trading as investors apparently fretted about a slowdown in the company’s growth.

Jupiter Research analyst Gary Stein makes a good point. “…When 3x earnings doesn’t meet expectations, it may be time to re-examine your expectations.”

Revenue from sites owned by Google (including its main page, local search and maps) was $737 million, a 115 percent increase over the same quarter last year. That figure represents 53 percent of total revenues. Google’s AdSense network generated $630 million, or 46 percent of total revenues, which is an 82 percent year-over-year increase in the network’s revenues in the second quarter.

In a conference call with investors, analysts and reporters, co-founder Larry Page noted that Google will be rolling out a number of new mobile services in the coming months, including a mobile version of Google Maps. He didn’t give out any details.

Google’s other co-founder, Sergey Brin, highlighted the new developments in international markets, mentioning new offices in Latin America and China. Google’s international operations accounted for approximately 39 percent of its revenue, while domestic revenue was 61 percent.

Brin also brought up former Microsoft corporate vice president Kai Fu Lee, who Google hired to be president of its China operations. Microsoft this week filed a suit alleging that Lee is violating a non-compete clause in his Microsoft contract by going to work for rival Google.

I was also interested to see that Google mentioned click fraud in a disclaimer at the start of the call as something that could impact its financial results in the future. Although, Google Chief Financial Officer George Reyes later says that click fraud has never been a material problem for Google “and we’re working hard to make sure it stays that way.” Click fraud is the cover story for our Fall Issue, so naturally those statements caught my attention.

If you’re really interested, check out the entire investor conference call.

As for Microsoft, revenue for its MSN division was flat, at $582 million this year compared with $588 million for the year-ago quarter. Operating income rose sharply to $104 million for the quarter, from $29 million for the same quarter last year.

Overall, Microsoft, for the three months that ended June 30, said net earnings climbed to $3.7 billion, or 34 cents a share, from $2.69 billion, or 25 cents a share, a year earlier. Revenue for the software giant jumped 9 percent, to $10.2 billion from $9.3 billion for the same quarter last year.

Analysts polled by Thomson First Call predicted Microsoft to have a quarterly profit of 31 cents a share, on revenue of $10.2 billion. Analysts’ estimates did not factor in the onetime charges.

Microsoft shares rose 25 cents to close at $26.44 on Thursday, and then dropped 51 cents in late trading.

Let me know what about online marketing is not adding up for you. lisap@revenuetoday.com

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Where it’s At

July 19th, 2005

Following last night’s super-rocking Beck concert I’m serving up a big dose of “nicotine and gravy.” Translation: today’s blog entry is a mixed bag of really interesting happenings in the world of online marketing.

Podcasting goes mainstream.

Google growth yields privacy concerns.

Online maps point to ad growth.

Online ad spending is up.

News Corp. buys Intermix.

Movers turn to local search.

Don’t be a loser, baby. Let me know your fascinating online marketing news of the day. lisap@revenuetoday.com

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J’Adore Online Marketing

July 14th, 2005

Bonjour. Je m’appelle Lisa. Today I’m feeling very French. I think I’ll try and I’ll pepper all my conversations with the dozen or so words I recall from high school French class. It’ll be tough but I think I can work in phrases about le bibliotheque and Pierre at the pool if I try tres hard. Though, I’m not guaranteeing the grammatical use or pronunciation of any of these words or phrases.

Microsoft, Claria deal est mort. Less than two weeks after word got out that Microsoft was attempting to acquire adware company Claria, there are now reports that the deal has been called off.

The reported reasons behind the collapse of the $500 million deal - concerns on Microsoft’s part about a PR fallout that could follow a Claria purchase. File that under “D” for duh! Mon dieu.

Meanwhile, Claria has started testing a personalized search service that tailors search results to Web surfers’ behavior. Claria already tracks users’ movements around the Web, but now the company plans to analyze those users’ search behavior. Claria’s search engine is now being tested by a small group, but is expected to be unveiled by the end of 2005.

Google just announced its personalized search product. Other major search players, including Yahoo, Ask Jeeves, and Amazon’s A9.com are also reportedly working on similar initiatives. Chacun entre la piscine. I warned you that I was going to work that one in.

So, it’s a done deal. DoubleClick announced Wednesday that its acquisition by Click Holding Corp. (a subsidiary of equity investment funds from Hellman & Friedman LLC and JMI Equity) has been approved by shareholders. and is completed. Fini.

As previously announced by the company, DoubleClick’s CEO Kevin Ryan has stepped down to pursue other opportunities. DoubleClick’s TechSolutions and Data segments will now be operated separately. David Rosenblatt will continue to oversee DoubleClick’s Ad Management, Email and Performics divisions as CEO of DoubleClick Digital Advertising and Email Solutions.

Tres magnifique. Last night I was transported back to the heyday of the dotcom boom (and then bust) via a new musical called Goin’ Dot Com! It was scary how much of that I covered as a high tech journalist. However, I managed to live through it all without ever breaking into song.

After the show I had an overwhelming desire to eat some fromage cubes and scallops wrapped in bacon while schmoozing with 23-year old executives on Razor scooters at a swanky launch party.

Anyway, if you happen to be in the San Francisco area before the show’s run is over in mid-August, get tickets. It’s a great night of entertainment and brings you right back to the start of ecommerce and etailing on the Net. Plus, one of the fabulously, talented stars of the show is a co-worker.

Tell me, en Francias, s’il vous plait, about your latest online marketing efforts. Au revior. lisap@revenuetoday.com

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Top Performers

July 12th, 2005

Thirty-three years ago today the Rolling Stones gave their first public performance. It took place at the Marquee Club in London. The band’s lineup has changed some since then, but singer Mick Jagger and guitarist Keith Richards are still hanging in there for the group’s tour this year.

While many (including me) claim the band’s decision to tour yet again is more about the money than the music, it’s hard to deny the Stones their rightful place in rock n’ roll history. Still, in spite of the obvious jokes about needing walkers, wearing Depends and collecting social security, the Stones continue to be one of the top grossing bands whenever they go on tour.

So, what does any of this have to do with affiliate marketing? Not much – except that I have spent a lot of time thinking about top performers in a variety of different industries over the last few days.

There are two reasons that the concept of top performers has been on my mind: first, Commission Junction just launched a new program to reward its top performing affiliates; second, there has been a huge uproar surrounding a list of top performing affiliates put out by consultant Jeff Molander.

Let’s start off with the less controversial of the top performer topics. On Monday Commission Junction announced its CJ Performer program, whereby top-performing publishers get access to enhanced support and resources and recognition within Commission Junction’s network as a premier publisher.

According to CJ company officials, about 200 of its more than 70,000 active affiliates are expected to be invited to join the program. These Web publishers will identified at CJ Performers with the Commission Junction Marketplace.

For publishers this means they get assigned a CJ account manager who will work with them to o improve their results and to develop relationships with advertisers in the network. CJ Performers also get expedited responses to technical inquiries, free access to product catalog data and customized reporting.

And just in case you’ve managed to avoid the hoopla regarding The Affiliate List, let me get you up to speed.

About a month ago at the Affiliate Summit 2005 in Las Vegas, Molander released a ranking of approximately 200 top affiliate websites. It is compiled using data from several databases (Alexa, Whois, Googspy and MarketLeap and possibly others). Molander sells this list for $399.

At the crux of the controversy are publishers that are up in arms about being included on the list. They don’t want all their information (information they consider private and proprietary) being sold. Many have asked to be taken off the list. Molander is not removing publishers from his list claiming that the information included is all publicly available and he simply compiled in it in a useful fashion.

I’m not taking sides on this one and will let you be the judge. Check out Threadwatch to follow ongoing hoo-ha. Some of the entries are hilarious and the entire thread makes for really interesting reading.

Meanwhile, let me know your tricks for becoming a top performer. lisap@revenuetoday.com

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About a Blog

July 8th, 2005

Twice a week I get to address anyone that is willing to listen, er read, via this blog. We started the Revenue blog back in November 2004 for a variety of different reasons. It’s a great way to interact more with our growing readership and potential subscribers. It lets me spew some hopefully insightful (or at least mildly entertaining) information. And let’s not kid each other; it helps promote our brand – Revenue.

We are certainly not alone in taking this tact. Business Week recently ran a cover story on how “Blogs Will Change Your Business,” and other mainstream publications such as The New York Times are also very closely following the trend of companies attempting to use blogging as a way to establish and maintain strong, mutually beneficial relationships with customers, partners, employees and other key audiences.

While many industry watchers pondered the effect blog had on the presidential election in 2004, the rise of blogs at business was flying under the radar. Until now. You can’t swing a dead cat without running across a research group or an analyst that isn’t predicting an explosive growth for blogging and especially business blogging.

Savvy affiliates have already gotten on the blogging bandwagon and know that the cost of blogging is lower than that of other marketing media. Affiliates also know blogs are a great way to experiment, to test new ideas, or to reach narrow niche markets.

Affiliates seem to have caught on to what others have missed – blogs are a new medium and they should not be compared with traditional journalism or big media. There is plenty of room for both to exist.

I’m working on an article for our Fall Issue about affiliates and blogging. It’s been one of the most fascinating topics that I’ve researched and reported in a long time. I’d love to hear your stories about blogging. lisap@revenuetoday.com

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Searching for Google

July 5th, 2005

The three-day weekend is just a pleasantly blurred memory of fireworks, food and friends. Now it’s back to work and thoughts of Google are exploding in my head.

Google won a $75,000 judgment against an AdSense partner publisher that it had accused of deliberate click fraud. Not sure why it took so long for news of this to surface, but it was nearly two months ago when a California judge granted Google a $75,000 judgment against Auction Experts, a Houston, Texas firm. In its complaint filed late last year, Google had alleged that Auction Experts had hired individuals to click on the ads that appeared on the firm’s sites, racking up advertiser costs of at least $50,000.

Still, Google’s click fraud challenges are far from over. The company is involved in at least two high-profile lawsuits related to click fraud. We’ll have a lot more on this topic in the Fall Issue of Revenue. In fact, click fraud is the subject of our cover story. Stay tuned.

And it looks like Google will be releasing a version of its IE toolbar for the Firefox browser. It’s slated for release on Thursday, according to a developer website.

However, the most interesting part of the post is not details about the forthcoming toolbar, but Google’s plea for folks not to comment on the toolbar launch prior to the official announcement. It reads, “Since you were in the Google-toolbar-for-firefox space first, it’s conceivable that the press might contact you for comment. If they do it would be great if you could hold of replying until our press releases go out on the 6th.” Like that ‘s going to stop people from talking.

And Google keeps getting bigger and bigger. In a ranking of world top 500 companies published by UK’s Financial Times, Google has entered the top 100 with a market value of $50 billion.

Let me know what you know about Google. lisap@revenuetoday.com

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Microsoft/Claria: Done Deal or Dumb Deal?

July 1st, 2005

The fireworks about Microsoft possibly buying Claria certainly has the affiliate and performance marketing community exploding with opinions. Here’s what’s being said about the potential acquisition in the blogsphere and beyond:

“This could be huge.”

“This is no surprise to some anti-spyware vendors who have speculated that while the Microsoft anti-spyware tool is efficacious…”

“Microsoft’s $500 million bid for Claria is not enough.”

“I’m in shock.”

“Should Microsoft be rewarding deception?”

“The only way it makes sense is if Microsoft buys the company, fires everyone involved with it, has their buildings exorcised, and rewrites every line of code in their product.”

Let me know what you think about the deal. lisap@revenuetoday.com

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