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Thursday, November 30, 2006

How The Digg Editorial Process Differs From Search Engine Editorial Process

"Todd Malicoat has a write up called The Search Marketer’s Guide to Digg, where he explains the difference between the Digg.com editorial process and search engines editorial process. It all comes down to the "human editorial authority," and I quote;

While most the search engines DO have human intervention - they haven’t accepted and embraced it. One of the beauties of digg is if there is CRAP in the index - you know exactly who to blame for it.

As always, both human and algorithmic methods of intervention have their faults. I am sure Danny will go into a bigger write up on the pros and cons of each at a later point..."
More information and links to related articles.

Wednesday, November 29, 2006

More good news for online advertising...
Analysts Bullish on Online Ad Spending

NOVEMBER 27, 2006

An emerging consensus paints a positive picture.

The trend began early last week, when the Internet Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) released new data showing that US Internet advertising revenues reached a record $4.2 billion in the third quarter of 2006.

That represents a 35% increase over the $3.1 billion figure posted for the third quarter of 2005, and a 2% increase over the second-quarter 2006 total of nearly $4.1 billion.

"Interactive advertising, with its eighth consecutive quarter of growth and the largest single quarter ever, is on pace for its biggest year," said David Silverman of PwC.

Now Merrill Lynch has raised its estimates.

Merrill Lynch now estimates that US online ad revenue for the first three quarters of 2006 was 35.5% more than in the same period in 2005. The firm previously forecast a 31% increase.

The company also now expects US online ad spending in the fourth quarter to be 30% more than it was in Q4 2005, up from its previous estimate of a 27% increase.

For 2007, Merrill is projecting 23.3% growth in online ad spending — up slightly from its previous projection of 22.5%.

Merrill Lynch expects paid search to increase 27% next year, and branded ads to grow by 21%.

Even with the injection of online video ad spending expected in 2007, the firm projects that search will still account for over 42% of the online advertising spend, up one percentage point from this year.

For more on Internet advertising, read eMarketer's US Online Ad Spending: Peak or Plateau? report.

Monday, November 27, 2006

Why Ross Levinsohn Is Leaving News Corp.
"The executive who advised Rupert Murdoch to acquire MySpace will likely join a startup. "I like building," he says
by Steve Rosenbush

Ross Levinsohn, the News Corp. executive who put Rupert Murdoch's media empire on the digital map, says the online market is still exploding with opportunity. Levinsohn, who conceived of News Corp.'s (NWS) acquisition of social networking phenomenon MySpace (see BusinessWeek.com, 8/9/06, "Fox to Make MySpace More Spacious"), announced his resignation late on Nov. 16. "I have some opportunities," Levinsohn, 43, told BusinessWeek.com on Nov. 17. "It's the most exciting time in the history of the business, and I like building." ..."

Friday, November 17, 2006

"Internet search rivals unite to make websites easier to find

SAN FRANCISCO AFP 17/11/2006 02:57

Internet search rivals Google, Yahoo and Microsoft formed an unusual alliance to support a shared standard regarding how websites are pinpointed for their indexes.

The "joint initiative" was intended to make it easier for webmasters, or website creators, to let Internet search engines know what their online pages contained, according to Google was.

Search engines could use the information gathered in the "web crawl" process to better tailor results for their users.

Yahoo and Microsoft announced they would each support Google's "Sitemaps 0.90" protocol instead of using different standards for submissions by webmasters.

"The launch of Sitemaps is significant because it allows for a single, easy way for websites to provide content and metadata to search engines," said Yahoo Search director of product management Tim Mayer.

"Sitemaps helps webmasters surface content that is typically difficult for crawlers to discover, leading to a more comprehensive search experience for users."

Google launched its first Sitemaps protocol in June of 2005.

A Sitemap is a website file that acts as a marker for search engines to "crawl" certain pages. It allows webmasters to list their online addresses, called "URLs," along with data such as the last time the page was updated.

The Sitemaps protocol used by Google has been widely adopted by many Web properties, including sites from the Wikimedia Foundation.

"At industry conferences, webmasters have asked for open standards just like this," Search Engine Watch editor-in-chief Danny Sullivan said in a release.

"This is a great development for the whole community and addresses a real need of webmasters in a very convenient fashion." ..."

Jason Calacanis leaving AOL:
Yes, it's true... I'm leaving AOL.

"TechCrunch broke the story (less than two hours after I told everyone here), and the New York Times confirmed it with me by phone this afternoon.

I've got a lot to say, but I'm thinking that I'll just talk about it on the final episode of the Gillmor Gang podcast--which we happen to be doing tomorrow (crazy coincidence I know).

Your pal,

Jason"

PS - Thanks to everyone sending emails, IMing, and calling.

Monday, November 13, 2006

Insights on traffic to and from Myspace and other Web 2.0 properties.Who Goes Where (After Sharing and Socializing)?

"Social networking, photo and video sites send valuable traffic to other destinations.
By Debra Aho Williamson - Senior Analyst

People who use social networking or online video sites spend a lot of time engaging with the content that is already there. But how do those sites affect traffic to other sites?

A new report by Hitwise attempts to make sense of the business that sites such as MySpace and YouTube send to other destinations.

In September, MySpace had an 82% market share of visits to the top 20 social networking sites, according to Hitwise. The second most popular site, Facebook, received 7% of visits.

However, MySpace is a significant driver of traffic to other social networking sites: 24% of visits to the other 19 sites on the list came directly from MySpace, Hitwise found.

All this networking adds up to long usage times. In September, the average session time was just over 27 minutes for social networking sites, vs. around 11 minutes for all other sites.

MySpace also is a driver of traffic to other types of sites. Hitwise reports that "the share of upstream traffic from MySpace for the Telecommunications category was 89% greater in September 2006 than it was in March 2006. In the same 6-month period, the share of upstream traffic from MySpace grew by 83% for the Shopping and Classifieds category, 77% for the Banks and Financial Institutions category, and 71% for the Travel category."

In other words, MySpace is referring an increasing amount of traffic to those site categories, either by organic links (such as links within user profiles) or advertising links.

In the case of YouTube, 3.3% of visits that went directly from YouTube to another site went to the television category during the week ended October 7, 2006. CartoonNetwork.com received the most visits, followed by ESPN and Disney Channel.

The close relationship between social networking sites and photo sharing sites is also evident in the data. Photobucket, Slide and Imageshack all receive the majority of their traffic from MySpace. "In September 2006, 57% of upstream traffic to Photobucket came directly from MySpace," reported Hitwise. "MySpace accounted for 51% of upstream traffic to Imageshack and 77% of upstream traffic to Slide in September 2006."

All these sites represent advertising possibilities for those seeking to reach the MySpace or YouTube audience, Hitwise said.

For more on social networks, read eMarketer's new Social Network Marketing: Ad Spending Update report..."

Sunday, November 12, 2006

Looking at StumbleUpon, Yoono, & Web 2.0 Toolbar

"Was searching for video coverage of the 2006 Web 2.0 Conference this morning and ’stumbled’ across this excellent & entertaining video which highlights and explains the Web 2.0 Toolbar, Stumble Upon & the Yoono toolbar.

Each toolbar is a bit unique in its own way and the video identifies each toolbars’ differentiation point.

Currently, I use StumbleUpon, but after watching the video am tempted to give Yoono (which seems to be sponsoring many 2.0 related blogs) and Web 2.0 Toolbar a try..."

MySpace Founders ‘Shortchanged’ by Fox Interactive?

"VentureBeat’s Matt Marshall reports on MySpace co-founder Chris DeWolfe being “shortchanged” by the Fox MySpace acquisition. Reportedly he received only $5 million. On the one hand, how many people have $5 million? On the other, the company was sold for $580 million and so, if true, he was really diluted.

I spoke to a reporter last week who said the same thing and asked whether I’d heard that the MySpace founders were angry or frustrated with the money they received.

Many entrepreneurs I speak with aggressively caution against taking VC money. Something like: take as little as possible for as long as you can hold out. To that end, here’s an interesting NY Times piece (reg req’d) on the subject featuring IM “aggregator” Meebo, which was started with credit cards.

Low overhead is the answer to the question, “How can all these little companies survive?”..."

Friday, November 10, 2006

Social Network Ad Space: Sorry, Sold Out!

"Ad agencies are abuzz, inventory is tight…

For many marketers who were sitting on the sidelines of social networking as recently as four months ago, advertising on social networks has become a top priority.

In a recent interview with eMarketer, Michael Barrett, chief revenue officer at Fox Interactive Media (FIM), said, "The conversation with marketers has shifted in recent months from 'Why MySpace?' to 'How can I use MySpace?'"

"At this point, many of the dollars are still experimental, but in certain categories such as movies, TV and music, marketers are actively budgeting funds to social networking campaigns," says Debra Aho Williamson, eMarketer senior analyst and the author of the new Social Network Marketing: Ad Spending Update report. "Much like in the early days of Web marketing, there is a fear of being left behind: If a competitor is there, then I need to be there, too."

In fact, the pace of events since August (including Google's $900 million deal with MySpace and the trickle-down effects of this deal) has led eMarketer to revise its expectations for social network ad spending upward.

eMarketer now expects that US marketers will spend $350 million placing ads on social network sites in 2006 (up from our previous estimate of $280 million).

US spending on social network advertising is now expected to rise to $865 million in 2007 and to reach $2.15 billion in 2010.

"MySpace will continue to dominate, accounting for 60% of US online social network ad spending in 2007," says Ms. Williamson. "Networks including Facebook, Bebo and Piczo will make up the next largest chunk of revenue, followed by social networks offered by portal sites. Vertical, or 'niche,' networks are likely to generate $45 million in ad revenue in 2007."

Social network ad spending will account for 2.2% of the $15.9 billion spent on US online advertising in 2006 and 4.7% of the estimated $18.3 billion spent in 2007, according to eMarketer. By 2010, it will account for 8.5% of the estimated $25.2 billion US online advertising market.

Social network spending will by no means be limited to the US.

"eMarketer estimates that worldwide social network ad spending will be $1.1 billion in 2007, up from $445 million in 2006," says Ms Williamson. "Spending is expected to rise to $2.8 billion in 2010."

"The numbers speak for themselves," says Ms Williamson. "Projected growth in ad spending on social networking sites of 147% in 2007 shows that marketers are enthusiastic about the space. The race is on to capture their ad dollars."

Find out if the time is right to advertise on social networking sites; read eMarketer's new report, Social Network Marketing: Ad Spending Update, today..."

Online Retailers Face Four-Second Barrier

NOVEMBER 10, 2006

One... two... three... and gone!

When it comes to online retail, service matters — and so does speed.

"The customer experience begins the very instant a shopper types in your online address," said Don Becklin, president of Motorcycle Superstore. "We put a very strong focus on both the organization of our site and the site's performance."

A year ago, Taylor Nelson Sofres (TNS) found that slow-loading pages ranked near the top of the most "annoying" attributes list for online shoppers.

Now, as the all-important online holiday shopping season nears, and the competition for online shoppers increases, a new report from Akamai Technologies advises e-tailers to be on their toes — because a few heartbeats can make the difference between a sale and a lost customer.

The research shows that four seconds is the maximum length of time an average online shopper will wait for a Web page to load before abandoning one retail site and moving on to another.

"The critical takeaway from this research is that online shoppers not only demand quality site performance, they expect it," said Brad Rinklin of Akamai. "Four seconds is the new benchmark by which a retail site will be judged, which leaves little room for error for retailers to maintain a loyal online customer base."

With 46% of online shoppers insisting on a rapid checkout process, and with 55% of shoppers spending $1,500 or more demanding the same, the report contends that online shopper loyalty is contingent upon quick page loading — especially for high-spending shoppers.

In fact, poor site performance ranked second only to high product prices and shipping costs as leading factors for dissatisfaction among online shoppers.

Obviously, page-loading time could be a critical competitive differentiator, particularly during the heavy shopping season when traffic can slow even hardy systems. And plenty of sites should be worried. During normal business periods, almost half of the retailers on the Internet Retailer "Top 500" sites list have response times in excess of four seconds.

This holiday season, no speed could be dangerous for online retailers.

For more on Internet retail, read eMarketer's...

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