PPC Earthquake: Chinwag Event in London
Posted by Robin Skidmore on Wednesday, March 28th, 2007 in PPC
Chinwag’s PPC earthquake event on tuesday night was entertaining. Hosted by Mike Butcher, as per his usual style, discussions cut to the chase immediately. This was a welcome break from the normal sanitized chat on PPC that occurs at these types of events. Panellists included three agencies, Blue Barracuda, Latitude and Neutralize and Nigel Leggat from Microsoft Adcenter. (names updated)
Firstly, i liked to say that most PPC events tend to be pretty dull for anyone who knows about the industry becuase typically what happens is the agencies tow the line and refuse to get drawn into opinionated discussions whilst the search engines play a game of diplomacy. Which all leads to a rather luke warm discussion on what is now a more mature industry. Nonetheless, there were lots of things to nod at or mumble under your breath about.
Highlights were:
Microsoft’s complete frankness regarding the launch of Adcenter
They scored themselves a schoolmark of “B/B : room for improvement” on the success of their launch of their new pay-per-click marketing product, Adcenter. I would have given them an “A” for openness in their evaluation on how much the launch met advertisers expectations. Basically to sum up:
- Launch went ok – in that they got a fair amount of avertisers on board.
- Service & support USP was a winner. Telephone support for all advertisers regardless of size of customer was working well and not met any crisis. In my opinion, lowering the barrier to entry is A Great Thing for such a big player like MSN to offer. Certainly in my experience, telephone support helped me to get on board quickly. As an agency this would spell good news too as it’s a great story to tell your smaller advertisers and make them feel loved. PPC was the most fun 5 years ago when you could use Adwords to propel a tiny cottage industry into the stratosphere – so for a second i got the tingle of a rennaisance of old fashioned values. None of this “what is your budget” snobbery that is rife among google and other agencies now.
- Quality traffic is present on the MSN network. This was backed up by Latitude who had discovered great conversion for some of their advertisers. They tend to work on a CPA busines model so they probably know what they’re talking about.
- Distribution & Traffic volume has still got a long way to go but is clearly outshined by Google. Ho hum.
- Demographic targeting – their most touted USP – does work but unfortuanately not a lot of advertisers are not really using it. This makes perfect sense to me and not something to worry about; until the volume and competition reaches a critical mass, there is no real need to target demographically, as current traffic volume are no where near most medium and large advertisers spending power. At this stage most of us are quite happy with cheaper traffic than Google!
- User Interface is tricky to use. Wow – amazed and glad they admitted that! Apologies to the guys at Adcenter, but in my opinion it truly is a dog. However if they acknowledge it then i’ll suffer in silence in the hope that it will get overhauled.
The house tended to agree that Yahoo panama hardly had earthquake potential but was a step in the right direction
Neutralize felt that the close resemblance of the new Yahoo Panama interface to Google AdWords was going to make account management easier and that they would probably attract a few more current advertisers on Google as it is now so easy to import the latter into the former. The quality score was more of the same, but was ultimately a fairer system and teh fact that you can separate Content and Search ads was a definite improvement. Blue Barracuda felt that clients were aware of the impending shift to Panama and that it would improve their image of Yahoo Search, especially if the new quality score helped them to improve clickthrough rates.
Frankly there is not much to say about Yahoo Panama except that it is very very welcome. Personally i would have added that Panama should bring back a lot of small business and niche advertisers who have been burnt by overtures particularly unwieldy and inflexible bidding engine. Everyone acts like these advertisers are not worth bothering with, they’re just small fry, but clearly they have not been reading enough Chris Anderson 
“A big hit is required”
No one felt that any of these developments from MSN Adcenter or Yahoo Panama was going to bite into Google’s market share. Although this was obvious – i was slightly disappointed at the overall lack of fighting talk from MSN or details of any strategy remotely resembling disruptive innovation. Mobile Search, Local Search and Pay-per-call were all word dropped which made me groan. Not just becuase all three make up the PPC grail trinity that everyone has been wishing on for years. Or the fact that it is universally acknowledged by the panel that mobile search is too low volume at this stage – but becuase clearly Google is already winning the mobile search battle with mobile sitemaps and auto-optimising websites for mobile browsers/screens. Furthermore MIVA are abandoning Pay-per-call this month not for lack of advertisers but for lack of response from consumers and local search is just not that interesting without a social element. Personally i think it’s the companies experimenting with microformats, like Upcoming and Technorati, that have anything interesting to offer this area. Obviously if anyone wants to debate this with me or just tell me i’m wrong – please do so!
So seemingly no big hitters were really on the horizon, although we did get one interesting insight into MSN’s skunkworks. They plan to roll out their search engine onto Xbox Live – which clearly presents a huge demographic targeting opportunity for advertisers.
Yet it’s hardly what i’d call disruptive innovation. What i really wanted to hear was that MSN would come to the rallying cry of publishers all over the country, replace their useless on site search facilities, and deliver a revenue strategy to supply PPC ads from highly targeted and desired demographics like the b2b sector. But maybe the market is more complicated than i think – Google has got most of the publishers tied up becuase they are willing to spend money on them. For the richest company in the world – microsoft have missed a great land grab and a chance to bite into the market share of search queries.
Sod talking about the big 3 anymore – Yahoo and MSN are fighting a losing battle by refusing to innovate or respond to the crisis traditional publishers are facing. The only search orientated companies that seem to value the publisher in the UK, the niche content producers, in my opinion are MIVA and AdPrecision, the latter whom spoke up at the event. Those smaller players are the ones recognising the demand from advertisers for genuinely better demographic targeting through branded partnerships and see the desperate struggle that traditional publishers face to avoid being completely dominated by the disruptive power of Google.
So that’s my roundup of the PPC earthquake – any food for thought? I don’t claim to be a journalist or anything, just an online ranter. An alternative view and interesting discussion is taking place here.
March 29th, 2007 at 12:50 pm
Great summary of the event. The guy from Microsoft is Nigel Leggatt who is AdCenter’s Marketing Manager.
March 29th, 2007 at 4:13 pm
A sterling summary of the discussion – you picked up a lot of points missed elsewhere. I’d also add that, it’s clear that Long Tail publishers could well be the ammunition MSN and Yahoo! need to take on Google. If only they could see it.
March 29th, 2007 at 4:54 pm
I talked about other ad networks useful for publishers such as AdBrite, and possible shifts in the types of buying metrics, maybe a hark back to the old days of fixed cost, fixed term placement rather than micro payment mechanisms that sometimes undervalue a publishers audience.
We also discussed distribution and access to new audiences as being critical for both Yahoo! and MSN. The deciding factors really seem to be – volume & quality in the paid search battle, and unless either releases some ground breaking search system to draw more volume to their SERPs, that’s most likely to be achieved through partnership/content network deals.