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Can Google Find The Money In Social Networks?

If Google Can’t Who Can?

That’s the question being asked lately referring to Google’s attempts at monetizing social networks.

Google has a deal with MySpace through the 2nd quarter of 2010 worth $900 million to place advertising throughout the network on over 100 million users pages. It’s a revenue sharing agreement made with the giant social network that is supposed to tap into the behaviors of MySpace users.

So far, Google is losing the battle. It has cost them 1.5% off their gross profit margins and that is totally unacceptable to Google according to estimates from Bernstein Research analyst Jeffrey Lindsay.

No one has been able to crack into the social networks advertising nut, primarily because social networks don’t work off of searches and intent, they work on actions.

Users in social network communities search for like minded individuals and groups, not specific content, as in traditional search methods all of which Google is famous for. But, one advertising specialist says he knows how to monetize the networks and claims Google is doing it wrong.

Andy Monfried thinks he can help publishers do it. Monfried, a former Advertising.com executive and current CEO and founder of Lotame, says he’s discovered the secret sauce for monetizing social networks…

“You can’t put up contextual ads against user-generated content,” Monfried says. “It’s irrelevant, and advertisers don’t want to risk their brands on user-generated content.”

In essence, expect to see more attempts at ads popping up in social networks. Primarily because they mean money for the owners of such networks and everyone needs to earn a living. Or maybe Google will just go ahead and purchase Yahoo, call it Yahoogle and tap into some of the social networks Yahoo owns — like Flickr.

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Posted by Teasa’s Tips

It’s Over, No More 10 Cent Fixed Bids On Yahoo

Minimum bids for a number of Sponsored Search keywords will no longer be fixed at $.10 for Yahoo Search Marketing advertisers. The new minimum bids can be lower or higher than $.10. Content Match minimum bids currently however will remain at $.10.

According to the YSM weblog post on the minimum bids subject, the amount set as the minimum bid on a keyword in Sponsored Search can vary depending on multiple factors, such as the relevance of your keywords (as measured by the quality of the ads associated with them), and the number of bidders and bid amounts in the particular keyword market. Advertisers, are you listening? You’ll now have to meet a “reserve price”.

As you can imagine, some advertisers are none too pleased with the Google-esque pricing model. One comment on the post sums up the thoughts of a few advertisers - “This is terrible, I’m going back to Google.“

(courtesy Website Magazine)

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Yahoo + Microsoft Does Not Equal Google

Even if Microsoft is successful in their takeover of Yahoo, their combined market share would still fall short of Google. Right now, 23% of searchers use Yahoo and 10% utilize MSN; Google commands 58%. In using the different search engines I found major differences.

MSN Search does not have the same user friendly feel of Google. With Google you can find anything using everyday words; while searching on MSN can leave a user with incomplete and indirect information.

Yahoo is about the closest thing to be compared to the manner in which information is searched for that mimics Google.

Since the announcement of the merger, Google has issued a public statement with concerns of anti-trust behavior by the two. Google is going to be self-serving in the interest of maintaining and protecting their market share.

But, competition could provide additional opportunities for advertisers. Not withstanding similar corporate cultural environments. Experts believe a merger could further damage Google’s low penetration of the B2B market. Further evidence that Google speaks to the everyday consumer that being the key differentiator between Google and MSN.

Yahoo search more closely mirrors Google’s search system. While MSN has a business skew, a pairing with Yahoo could give MSN the ability to ride the tailwind of Yahoo, creating an enviable foe for Google.

Another hidden advantage for the #2 and #3 SE’s- MSN and Yahoo have the respect and confidence of the top ad networks in the world. These relationships have taken years to build, something Google lacks.

It’s a well known fact that competition improves a product. Google seems to be focused on remaining in front of the curve that predicts the behaviors of its users, and maintaining satisfaction from them. The friendly user-bility of Google may be the thing that sets them apart.

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Microsoft Offers To Buy Yahoo

In new stock tech news, Microsoft has offered to buy struggling search engine Yahoo! for $44.68 billion. Microsoft wants to boost its position in the powerful and financially rewarding search business.

Just last week, Jason Miller of WebProNews Insider Report wrote that Yahoo! was working to uncover Google’s method of page ranking.

“search experts at Yahoo seem to think it’s not complex enough. Based on patent filings, Yahoo is dabbling in ranking algorithms that incorporate more user behavior data in advance of the company’s next run at toppling Google’s haloed relevance. “

Definitely what Yahoo has not grasped nor Microsoft is the search habits of real people. People are not just searching terms anymore. We are looking for pictures, jpegs, music, music videos, the parameters for search has changed, and Yahoo nor I believe Microsoft have changed with their audiences. They spend lots of time trying to figure out Google’s algorithm, when really they should just look at what people are looking for and how they look for information. They hemmed and hawed, so the cheese moved.

The unsolicited offer will allow Yahoo shareholders to choose from cash or stock when the buyout occurs.

This offer should not come to any surprise, as Microsoft and Yahoo both explored ways to work together in 2006 and 2007. At that time Yahoo rejected the idea of a takeover.

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