Google Introduces New Search Based Keyword Tool

Google has released a new keyword tool that uses search data relevant to a specific site to provide keyword suggestion for advertising and other purposes according to a post on the Inside AdWords blog. The tool looks at a site’s pages and then identifies “keywords that potential customers are searching on to find your products or services.” The tool lists how many searches the keyword receives as well as the amount of competition and suggested bid for that keyword in Google’s AdWords search advertising program.  While the tool is designed to work with AdWords, the tool can be used without and AdWords account. The tool currently provides data for United States and United Kingdom, but will expand to additional languages and countries in the “near future” according to Google.

Google Withdraws From Yahoo Partnership

In a post on the Official Google Blog, Google announced that they were withdrawing from the search advertising partnership with Yahoo that was originally announced in June. In a press release the U.S. Justice Department stated that Google withdraw “after the Department of Justice informed the companies that it would file an antitrust lawsuit to block the implementation of the agreement”. The Justice Department said that the agreement “would likely harm competition in the markets for Internet search advertising and Internet search syndication” due to the companies accounting for over 90 percent of both markets. In Google’s post they stated they withdrew because of the risk of a protracted legal battle as well as “damage to relationships with valued partners.”

Google, Yahoo Propose Revised Partnership to Justice Department

Google and Yahoo have proposed a revised version of their search advertising partnership to the U.S. Justice Department according to a Wall Street Journal article. The revised proposal limits the amount of revenue Yahoo can receive from the partnership to 25 percent of Yahoo’s search advertising revenue, shortens the length of the partnership to two years from a possible 10, and allows Google advertisers to opt out having their ads appear on Yahoo. The Wall Street Journal also reported that people familiar with discussions between the companies and the Justice Department told them that as of late last week a stalemate had been reached in the discussions.

Google Putting More Ads Above Search Results

Google will be changing the requirement for ads to show up above search results instead of to the right of search results according to a post on the Inside AdWords blog. Previously, Google only displayed ads above search results if the ad had a high enough Quality Score and it was the top ranked ad for that particular search. Ads will now be displayed above the search results if they have a high enough Quality Score; even if it is not the top ranked ad.

The post also announced that there would be an update to the portion of the Quality Score algorithm based on click-through rate, which according to Google is the “most significant component of Quality Score.” Because click-through rate is higher for ad in higher positions regardless of the quality of the ad Google factors in the position of the ad when determining that part of the Quality Score. The update will change how the position of the ad is factored into the click-through rate, which Google claims that the update “will result in more accurate Quality Scores.”

Study Finds Half of Readers of Blogs Find Them Useful for Purchase Information

A JupiterResearch study sponsored by BuzzLogic, a social media analysis company and ad network, found that half of blog readers (defined as consumers who have read a blog in the past 12 months) find blogs useful for purchase information. Of those readers, 56 percent said that blogs with niche focus and topical expertise were “key sources.” The top categories that those readers founder were useful for purchase information include technology at 31 percent, media and entertainment at 15 percent, games/toys and/or sporting goods at 14 percent, travel at 12 percent, automotive at 11 percent, and health at 10 percent.

The study also found that same percentage of frequent blog readers (defined as consumers who read blogs more than once per month) said that they trusted blog advertising as paid search advertising. The percentage, 25, was six points higher that their trust of advertising on social networking sites. The study also found that 40 percent of blog readers and 50 percent of frequent blog readers had taken an action as the result of viewing an advertisement on an blog.

Click Fraud Level Remains Same As Year Ago Period

Click Forensics today reported that the overall industry average click fraud rate for pay-per-click (PPC) advertising was 16.0 percent in the third quarter of 2008, down from 16.2 percent in the third quarter of 2007. The rate was 16.2 percent in the second quarter of 2008. The rate of click fraud for PPC advertisements appearing on search engine content networks, including Google AdSense and the Yahoo Publisher Network, was significantly higher than the overall, representing 27.1 percent of clicks during the third quarter of 2008. Botnets made up over 27.6 of the click fraud during the quarter. Click Forensics gathers the data from a network of more than 4,500 online advertisers and agencies.

Yahoo Sued By American Airlines Over Trademark Search Ads

American Airlines has sued Yahoo for trademark infringement according to a CNET News article. American Airlines claims that Yahoo is diverting business from them by allowing competitors to purchase ads next to search results for terms related to American Airlines trademarks. Yahoo’s current trademarks policy states that advertising on search terms that may be someone else’s trademark is only allowed “if the advertiser presents content on its Web site that (a) refers to the trademark or its owner or related product in a permissible nominative manner without creating a likelihood of consumer confusion (for example, sale of a product bearing the trademark, or commentary, criticism or other permissible information about the trademark owner or its product) or (b) uses the term in a generic or merely descriptive manner. In addition, the advertiser’s listing should disclose the nature of the relevant content.” American Airlines previously sued Google over the issue and reached a confidential settlement.

Yahoo Introduces ZIP Code Geo Targeting To Yahoo Search Marketing

Yahoo has introduced a number of new geo targeting options to Yahoo Search Marketing, it’s advertising service for the Yahoo search, according to a post on the Yahoo! Search Marketing Blog. Previously targeting United States based users was limited to targeting the whole United States along with Canada, individual states, or Nielson Media Research’s Designated Marketing Areas (DMAs). Yahoo has now introduced the option to target by ZIP code, city, or the United States and Canada individually. Yahoo provides a dynamic map and a search feature to assist in finding the correct ZIP codes for the ZIP code targeting option, which is currently a beta feature.

Google Releases Display Ad Builder for AdWords

A post on the Inside AdWords blog announced the release of tool for creating display ads for AdWords. The display ad builder combines user provided text, images, logo, and color selections into a flash based ad built on one of a selection of templates. The tool creates ads in variety of sizes to work with all ad placement types including video and games. Ad templates designed specifically for entertainment and media, financial services, local, retail, technology and travel are available. A number of interactive ad formats including a photo gallery, a product showcase, and a business locator are also available. The tool is currently only available for advertisers in the U.S. and Canada.

Ad Network Display Ad Rates Drop

According to a report from PubMatic display ad rates on ad networks drop in the third quarter of 2008, according to an Advertising Age article. The rate per thousand impressions averaged 27 cents down 21 percent from the second quarter. This follows a drop of 8 percent from the first to the second quarter. Small sites (under 1 million monthly page views) averaged 61 cents, medium sites (between 1 million and 100 million) averaged 31 cents and large sites (over 100 million) averaged 18 cents. According to a New York Times article, Forbes.com, ESPN.com, and CNN.com have stopped using ad networks this year in response to lower ad rates.