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Archive for April, 2009

Microsoft plans to spend between $80 million and $100 million advertising its new search engine.

Google still holds the lead in search. Yahoo! is a distant second. Microsoft has languished in an even farther third place for as long as we can remember. It looks as though they will be putting a big push on to show why their new engine is different. At present, Microsoft is not a major focus for any of the Search Engine Optimization work we’re doing with our clients. We’ll keep our eye on them to see if the new engine merrits a change in offering mix.

Can Microsoft market its way out of the search basement? Probably not, but it’s going to try, entrusting roster agency JWT to craft a campaign for its new search engine, alternately dubbed Kumo or Project Kiev or Live Search, depending on who’s talking about it.

Several screenshots of the interface have been circulating in the blogosphere, and an internal memo about the changes from Microsoft search chief Satya Nadella was posted by AllThingsD. The service is being tested and is expected to make its debut in the summer.

Industry executives expect JWT, part of WPP, to unveil an estimated $80 million to $100 million push for the new search engine in June, with online, TV, print and radio executions. Microsoft spent $361 million on U.S. measured media in 2008, the bulk of it devoted to brand advertising and smaller chunks to other Microsoft brands such as Xbox and MSN, according to TNS Media Intelligence data.

Regardless, the marketing will be an uphill battle. Microsoft’s search engine has languished in third place and has seen its share of the category drop in the past year. Its declined almost 15% from February 2008 to February 2009, when it captured 8.2% of all consumer searches. During the same period, Google grew its share 7% to 63.3%, and Yahoo was up 5% to 20.6% share, according to ComScore.

The losses in share occurred despite Microsoft’s trying some interesting tactics intended to goose usage. Last year, for example, it launched Live Search CashBack, which essentially offered consumers cash discounts when they bought products they had searched for using Live Search.

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MySpace, CitySearch to Partner

Facebook and Twitter seem to dominate the social marketing buzz we hear everyday. It’s easy to forget about MySpace in all the tweets and postings. Well it seems that the guys at MySpace aren’t out of the game yet. The big question is, do we as internet marketers care?

MySpace has struck a deal with IAC/InterActiveCorp‘s Citysearch to collaborate on a local-business project, as it tries to tap into the relatively fast-growing local online-advertising market.

The project, MySpace Local, will feature Citysearch’s database of local business profiles on its site. Users will be able to rate, review and comment on businesses and share those opinions with their friends on the network.

MySpace executives say they hope the initiative will open up a new revenue stream for the social networking site. Citysearch charges advertisers a fee when consumers take certain actions, such as downloading a menu for a restaurant. The two companies plan to split revenues when MySpace users access Citysearch content via MySpace Local. MySpace also is selling sponsorship of the local initiative to national marketers, with Outback Steakhouse and Coors as the initial sponsors.

While MySpace is great for kids and musicians, I’m not aware of anyone else using it. It doesn’t mean they aren’t. Just an observation on the people we work with every day.

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Internet Advertising Revenues Surpass $23 Billion in ?08, Reaching Record High

The terms “Integrated Marketing Plan” and Interactive Marketing are getting a bit closer together. With the down-turn in the economy and the fact that many brands are turning to the web to reach their target demographic, is this any surprise? Search Engine Optimization lead the way with 45% of the spending. Display Ads came in second with 33% of the spend.

Internet advertising revenues in the U.S. remain strong, topping $23 billion, according to the 2008 Internet Advertising Revenue Report, released today by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers LLP (PwC). Despite a difficult U.S. economy, interactive advertising?s continued growth, albeit at a slower pace, confirms marketers’ increased recognition of the medium?s value in reaching consumers online where they are spending more and more of their time.

Search remains the main driver of revenue growth according to the report, showing a 19.8% increase over 2007. Digital video, though still a small overall contributor, more than doubled its revenue with an increase to $734 million from $324 million in 2007, demonstrating how both marketers and consumers are embracing this dynamic platform.

As in 2007, retail, financial services, computing and automotive remained the four largest verticals among Internet advertisers in 2008. Consumer packaged goods, an industry vertical historically slow to embrace interactive advertising, notably increased its share of total Internet ad revenues by 60 percent over 2007. The Internet is now the third largest ad-supported medium, marking its increasing significance to marketers and consumers.

Conducted by the New Media Group of PricewaterhouseCoopers LLP, the Internet Advertising Revenue Report was launched in 1996 by the IAB, and aggregates data from all companies that report meaningful online advertising revenues. The results are considered the most accurate measurement of interactive advertising revenues with the data compiled directly from information supplied by companies selling advertising on the Internet. The survey includes data concerning online advertising revenues from Web sites, commercial online services, ad networks, free e-mail providers, and all other companies selling online advertising. First and third quarter revenue reports are estimates, with the actual figures being released along with second and fourth quarter data respectively. PwC does not audit the information and provides no opinion or other form of assurance with respect to the information.

Great news for any firm in the web design industry. Even better news for full service interactive marketing firms like DoubleDome.

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