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Microsoft’s Live Search is adding more instant answers to the main search page. There are two new areas of instant answers being featured: Shopping and Flights.
For shopping, if you type in a keyword or phrase for the model of consumer product you’re interested in, you’ll get results for that product containing images with a price comparison and a links to the different e-tailers carrying that product. There’s also a link to review and use Cashback to enhance your search.

For flights, simply type in Flights from (point A) to (point B) and, in conjunction with this year’s acquired Farecast, you’ll get a result for a flight with those destinations.

What do you think of these Instant Answer additions? Leave your thoughts in the comments.
Chinese search engine Baidu saw a whopping 91% increase in the third quarter of 2008. The search engine had been seeing explosive growth leading up to the Beijing Olympics, which occurred during the third quarter.
Baidu expects profits in the fourth quarter to be around 80-85%. In the second quarter, Baidu’s profits increased by 87%.
Here’s the full press release:
Baidu Announces Third Quarter 2008 Results
Wednesday October 22, 5:00 pm ET
BEIJING, Oct. 22 /Xinhua-PRNewswire/ — Baidu.com, Inc. (Nasdaq: BIDU - News), the leading Chinese language Internet search provider, today announced its unaudited financial results for the third quarter ended September 30, 2008. (1)
(Logo: http://www.newscom.com/cgi-bin/prnh/20041011/BAIDULOGO )
Third Quarter 2008 Highlights
— Total revenues in the third quarter of 2008 increased to RMB919.1
million (US$135.4 million), representing an 85.1 % increase from the
corresponding period in 2007.
— Operating profit in the third quarter of 2008 increased to RMB368.3
million (US$54.2 million), representing a 119.1% increase from the
corresponding period in 2007.
— Net income in the third quarter of 2008 increased to RMB347.9 million
(US$51.2 million), representing a 91.4 % increase from the
corresponding period in 2007.
— Diluted earnings per share (”EPS”) for the third quarter of 2008 were
RMB10.00 (US$1.47); diluted EPS excluding share-based compensation
expenses (non-GAAP) for the third quarter of 2008 were RMB10.49
(US$1.54). Costs and expenses related to Baidu’s Japan operations,
incurred in both Japan and China, in the third quarter of 2008 were
RMB32.7 million (US$4.8 million), which reduced diluted EPS by RMB0.94
(US$0.14).
— The number of active online marketing customers during the third
quarter grew to over 194,000, an increase of 7.2% from the previous
quarter.
“I’m pleased to announce solid results for the third quarter,” said Robin Li, Baidu’s chairman and chief executive officer. “As China’s leader in paid search, Baidu has a large and diverse customer base covering numerous industries and sectors. Such diversity gives us great stability and positions us to capture future growth. Companies throughout China are increasingly recognizing the value of Baidu’s paid search as an effective marketing tool and we remain confident in our long-term growth potential.”
Jennifer Li, Baidu’s chief financial officer, said, “The impact of the 2008 Beijing Olympics on our business was in line with our projection for the quarter. We were also able to improve our operating margin again this quarter, highlighting the scalability of our business.”
Baidu recently launched the beta version of an online C2C platform that enables merchants to sell their products and services online via a Baidu- registered store. The new platform complements Baidu’s search business, enabling transaction fulfillment among our users. E-commerce is an emerging industry in China and there are vast opportunities for future growth in the sector. Baidu will continue to focus on providing the best quality experience for Internet users.
Third Quarter 2008 Results
Baidu reported total revenues of RMB919.1 million (US$135.4 million) for the third quarter ended September 30, 2008, representing an 85.1% increase from the corresponding period in 2007.
Online marketing revenues for the third quarter were RMB918.2 million (US$135.2 million), representing an 85.1% increase from the third quarter of 2007. Growth was mainly driven by increases in both the number of active online marketing customers and revenue per customer. Baidu had more than 194,000 active online marketing customers in the third quarter of 2008, representing a sequential increase of 7.2% and an increase of 35.7% from the corresponding period in 2007. Revenue per active online marketing customer for the third quarter increased to approximately RMB4,700 (US$692), a sequential increase of 6.8% and an increase of 34.3% from the corresponding period in 2007.
Traffic acquisition costs (TAC) as a component of cost of revenues were RMB108.8 million (US$16.0 million), representing 11.8% of total revenues, compared to 11.9% in the corresponding period in 2007.
Bandwidth costs as a component of cost of revenues were RMB48.0 million (US$7.1 million), representing 5.2% of total revenues, compared to 6.4% in the corresponding period in 2007. Depreciation costs as a component of cost of revenues were RMB56.9 million (US$8.4 million), representing 6.2% of total revenues, compared to 8.2% in the corresponding period in 2007.
Selling, general and administrative expenses were RMB163.2 million (US$24.0 million), representing an increase of 48.0% from the corresponding period in 2007, primarily due to the expansion of the direct sales force and an increase in customer service staff.
Research and development expenses were RMB78.2 million (US$11.5 million), representing a 109.0 % increase from the corresponding period in 2007, primarily due to an increase in research and development staff.
Share-based compensation expenses, which were allocated to related operating cost and expense line items, increased in aggregate by 211.1% to RMB17.0 million (US$2.5 million) in the third quarter of 2008 from RMB5.5 million in the corresponding period in 2007. The increase in share-based compensation expenses primarily reflects an increase in the number of options granted to employees.
Operating profit was RMB368.3 million (US$54.2 million), representing a 119.1% increase from the corresponding period in 2007. Operating profit excluding share-based compensation expenses (non-GAAP) was RMB385.3 million (US$56.8 million) for the third quarter of 2008, a 122.0% increase from the corresponding period in 2007.
Adjusted EBITDA (non-GAAP), which is defined in this announcement as earnings before interest, taxes, depreciation, amortization, other non-operating income and share-based compensation expenses, were RMB457.3 million (US$67.4 million) for the third quarter of 2008, representing a 104.7% increase from the corresponding period in 2007.
Income tax expense was RMB34.8 million (US$5.1 million), compared to an income tax expense of RMB2.6 million in the third quarter of 2007. The year- on-year increase in tax expenses was due to higher tax rates applicable to some of our PRC subsidiaries as their tax holidays either expired or partially elapsed.
Net income was RMB347.9 million (US$51.2 million), representing a 91.4% increase from the corresponding period in 2007. Basic and diluted EPS for the third quarter of 2008 amounted to RMB10.15 (US$1.50) and RMB10.00 (US$1.47), respectively.
Net income excluding share-based compensation expenses (non-GAAP) was RMB364.9 million (US$53.7 million), a 94.9% increase from the corresponding period in 2007. Basic and diluted EPS excluding share-based compensation expenses (non-GAAP) for the third quarter of 2008 were RMB10.65 (US$1.57) and RMB10.49 (US$1.54), respectively.
As of September 30, 2008, Baidu’s cash, cash equivalents and short-term investments amounted to RMB2.3 billion (US$338.0 million). Net operating cash inflow and capital expenditures on a cash basis for the third quarter of 2008 were RMB482.2 million (US$71.0 million) and RMB85.1 million (US$12.5 million), respectively. A portion of our capital expenditure for the quarter was related to the construction of Baidu’s new campus facility.
Outlook for Fourth Quarter 2008
Baidu currently expects to generate total revenues in an amount ranging from RMB1,025 million (US$151 million) to RMB1,055 million (US$155 million) for the fourth quarter of 2008, representing an 80% to 85% increase from the corresponding period in 2007 and a 12% to 15% increase from the third quarter of 2008. This fourth quarter forecast reflects Baidu’s current and preliminary view, which is subject to change.
(1) This announcement contains translations of certain RMB amounts into
U.S. dollars at specified rates solely for the convenience of the
reader. Unless otherwise noted, all translations from RMB to U.S.
dollars are made at a rate of RMB 6.7899 to USD 1.00, the effective
noon buying rate as of September 30, 2008 in The City of New York for
cable transfers of RMB as certified for customs purposes by the
Federal Reserve Bank of New York.
Conference Call Information
Baidu’s management will hold an earnings conference call on October 22, 2008 at 8:00 PM U.S. Eastern Time (8:00 AM, October 23, Beijing/Hong Kong time).
Dial-in details for the earnings conference call are as follows:
US: +1-617-786-2902
UK: +44-207-365-8426
Hong Kong: +852-3002-1672
Passcode for all regions: 55689997
A replay of the conference call may be accessed by phone at the following number until October 29, 2008:
International: +1-617-801-6888
Passcode: 69587650
Additionally, a live and archived webcast of this conference call will be available at http://ir.baidu.com .
About Baidu
Baidu.com, Inc. is the leading Chinese language Internet search provider. As a technology-based media company, Baidu aims to provide the best way for people to find information. In addition to serving Internet search users, Baidu provides an effective platform for businesses to reach potential customers. Baidu’s ADSs, each of which represents one Class A ordinary share, currently trade on the NASDAQ Global Select Market under the symbol “BIDU”.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the outlook for the fourth quarter of 2008 and quotations from management in this announcement, as well as Baidu’s strategic and operational plans, contain forward-looking statements. Baidu may also make written forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Baidu’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our growth strategies; our future business development, results of operations and financial condition; our ability to attract and retain users and customers; competition in the Chinese language and Japanese language Internet search markets; competition for online marketing customers; changes in our revenues and certain cost or expense items as a percentage of our revenues; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; the expected growth of the Chinese language and Japanese language Internet search markets and the number of Internet and broadband users in China; and Chinese governmental policies relating to the Internet and Internet content providers. Further information regarding these and other risks is included in our annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. Baidu does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of October 22, 2008, and Baidu undertakes no duty to update such information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement Baidu’s consolidated financial results presented in accordance with GAAP, Baidu uses the following measures which are non-GAAP financial measures: adjusted EBITDA, operating profit excluding share-based compensation expenses, net income excluding share-based compensation expenses, and basic and diluted EPS excluding share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures” and “Reconciliation from net cash provided by operating activities to adjusted EBITDA” set forth at the end of this release.
Baidu believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding certain expenses and expenditures that may not be indicative of its operating performance from a cash perspective. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to Baidu’s historical performance and liquidity. Baidu computes its non-GAAP financial measures using the same consistent method from quarter to quarter since April 1, 2006. We believe these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP operating profit excluding share-based compensation expenses, net income excluding share-based compensation expenses, and basic and diluted EPS excluding share-based compensation expenses is that these non-GAAP measures exclude share-based compensation charge that has been and will continue to be for the foreseeable future a significant recurring expense in our business. A limitation of using non-GAAP Adjusted EBITDA is that it does not include all items that impact our net income for the period. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
Baidu.com, Inc.
Condensed Consolidated Balance Sheets
September 30 December 31,
(in RMB thousands) 2008 2007
Unaudited Audited
ASSETS
Current assets:
Cash and cash equivalents 2,088,554 1,350,600
Short-term investments 206,360 242,037
Accounts receivable, net 100,193 64,274
Prepaid expenses and other current
assets 109,597 65,996
Deferred tax assets, net 2,587 2,587
Total current assets 2,507,291 1,725,494
Non-current assets:
Fixed assets, net 748,582 678,886
Land use right, net 95,008 96,472
Intangible assets, net 33,814 40,460
Goodwill 51,081 51,093
Investments, net 20,197 15,439
Deferred tax assets, net 17,060 15,716
Other non-current assets 84,394 32,348
Total non-current assets 1,050,136 930,414
TOTAL ASSETS 3,557,427 2,655,908
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accrued expenses and other
liabilities 371,745 359,310
Customers’ deposits 357,884 257,577
Deferred revenue 9,149 11,832
Deferred income 633 2,485
Total current liabilities 739,411 631,204
Non-current liabilities:
Long-term payable — 3,000
Deferred income — 332
Total non-current liabilities — 3,332
Total liabilities 739,411 634,536
Shareholders’ equity
Class A Ordinary Shares, Par value
US$0.00005 per share, 825,000,000
shares authorized, and 25,136,147
shares and 25,413,789 shares issued
and outstanding as at December 31,
2007 and September 30, 2008 11 10
Class B Ordinary Shares, Par value
US$0.00005 per share, 35,400,000
shares authorized, and 8,996,842
shares and 8,873,986 shares issued
and outstanding as at December 31,
2007 and September 30, 2008 4 4
Additional paid-in capital 1,254,593 1,171,575
Accumulated other comprehensive loss (127,770) (81,953)
Retained earnings 1,691,178 931,736
Total shareholders’ equity 2,818,016 2,021,372
TOTAL LIABILITIES AND SHAREHOLDERS’
EQUITY 3,557,427 2,655,908
Baidu.com, Inc.
Condensed Consolidated Statements of Income
For the Three Months Ended
September September
30, 30, June 30,
(in RMB thousands except for share, 2008 2007 2008
per share information) Unaudited Unaudited Unaudited
Revenues:
Online marketing services 918,179 496,120 802,183
Other services 946 410 428
Total revenues 919,125 496,530 802,611
Operating costs and expenses:
Cost of revenues (note 1, 2) (309,342) (180,704) (280,980)
Selling, general and administrative
(note 2) (163,247) (110,312) (174,213)
Research and development (note 2) (78,231) (37,433) (71,078)
Total operating costs and expenses (550,820) (328,449) (526,271)
Operating profit 368,305 168,081 276,340
Other income:
Interest income 11,375 12,519 10,378
Exchange loss, net (5) (331) (204)
Other income, net 3,009 4,040 7,032
Total other income 14,379 16,228 17,206
Income before income taxes 382,684 184,309 293,546
Income taxes (34,825) (2,580) (28,561)
Net income 347,859 181,729 264,985
Earnings per share for Class A and
Class B ordinary shares:
Basic 10.15 5.35 7.74
Diluted 10.00 5.23 7.62
Weighted average aggregate number of
Class A and Class B ordinary shares
outstanding:
Basic 34,257,974 33,983,137 34,217,081
Diluted 34,786,353 34,763,639 34,786,342
(1) Cost of revenues are detailed as
follows:
Business tax and surcharges (57,288) (30,702) (49,511)
Traffic acquisition costs (108,797) (59,155) (101,693)
Bandwidth costs (48,029) (31,837) (43,012)
Depreciation costs (56,907) (40,654) (57,790)
Operational costs (37,379) (17,979) (27,795)
Share-based compensation expenses (942) (377) (1,179)
Total cost of revenues (309,342) (180,704) (280,980)
(2) Includes share-based compensation
expenses as follows:
Cost of revenues (942) (377) (1,179)
Selling, general and administrative (6,933) (68) (16,484)
Research and development (9,149) (5,027) (11,618)
Total share-based compensation
expenses (17,024) (5,472) (29,281)
Reconciliations of non-GAAP results of operations measures to the nearest
comparable GAAP measures (*) (in RMB thousands, unaudited)
Three months ended September 30, 2007
GAAP Result Adjustment Non-GAAP Results
Operating profit 168,081 5,472 173,553
Three months ended September 30, 2007
GAAP Result Adjustment Non-GAAP Results
Net income 181,729 5,472 187,201
Three months ended June 30, 2008
GAAP Result Adjustment Non-GAAP Results
Operating profit 276,340 29,281 305,621
Three months ended June 30, 2008
GAAP Result Adjustment Non-GAAP Results
Net income 264,985 29,281 294,266
Three months ended September 30, 2008
GAAP Result Adjustment Non-GAAP Results
Operating profit 368,305 17,024 385,329
Three months ended September 30, 2008
GAAP Result Adjustment Non-GAAP Results
Net income 347,859 17,024 364,883
(*) The adjustment is only for share-based compensation.
Reconciliation from net cash provided by operating activities to adjusted
EBITDA(*) (in RMB thousands, unaudited)
Three As a Three As a Three As a
months % of months % of months % of
ended total ended total ended total
September revenues June 30, revenues September revenues
30, 2007 2008 30, 2008
Net cash
provided by
operating
activities 254,870 51% 403,378 50% 482,172 52%
Changes in
assets and
liabilities,
net of
effects of
acquisitions (17,800) -4% (37,893) -5% (45,293) -5%
Income taxes
expenses 2,580 1% 28,561 4% 34,825 4%
Interest income
and other, net (16,228) -3% (17,206) -2% (14,379) -1%
Adjusted EBITDA 223,422 45% 376,840 47% 457,325 50%
(*) Definition of adjusted EBITDA: earnings before interest, taxes,
depreciation, amortization, other non-operating income, and share-
based compensation expenses.
For more information, please contact:
Investor inquiries:
China
Linda Sun
Baidu.com, Inc.
Tel: +86-10-8262-1188
Email: ir@baidu.com
Helen Plummer
Ogilvy Financial, Beijing
Tel: +86-10-8520-3090
Email: helen.plummer@ogilvy.com
U.S.
Thomas Smith
Ogilvy Financial, New York
Tel: +1-212-880-5269
Email: thomas.smith@ogilvypr.com
Media inquiries:
Ceren Wende
Ogilvy Financial, Beijing
Tel: +86-10-8520-6514
Email: ceren.wende@ogilvy.com
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SES San Jose 2008 was held just a couple of weeks back, but still gives us enough time to find out what topics the top 10 videos on YouTube from the event were about.
Okay, so I only looked at the YouTube videos posted on the SESConferenceExpo’s channel — but that provides an apples to apples comparison. Besides, this is more about the topics discussed at the show than the popularity of the one channel versus another.
So, what are the topics covered in the top 10 videos from SES San Jose 2008?
1. (with 251 views) Avinash’s Long Tail Terms, Bouncy Icebergs, and Analytics
Avinash Kaushik of Google and Bryan Eisenberg of Future Now, Inc., talk about goals, bounce rates, and all sorts of important topics for marketers interested in measuring their campaigns, especially with Google Analytics. Later on in the video, Avinash talks about new features in Google Analytics like the partner program and data visualizations to help marketers understand what works and what doesn’t. He moves on to testing at the end, and plugs Bryan’s new Google Website Optimizer book, Always Be Testing.
2. (with 128 views) Small Business Viral Marketing Tips, SES San Jose 2008
Jennifer Laycock of Search Engine Guide and Andrew Goodman of Page Zero Media follow up their SES San Jose 2008 “Igniting Viral Campaigns” session with a discussion of the best tips on viral campaigns and social media marketing, especially for small business who want to make the most of their business online without spending too much money. The two talk about using social media sites like Linkedin and Twitter to communicate one’s marketing message to a dedicated and enthusiastic audience.
3. (with 121 views in 1 week) Mobile Search Lazarus, Mobi Job with Rebecca Lieb
Rebecca Lieb of ClickZ opines that mobile search is back and in a strong way, of course as a result of better smart phones and with what she and others see as the death of mobi. I interview Rebecca on her Death of .mobi panel at SES San Jose 2008 to learn more about the changing mobile search landscape.
4. (with 121 views in 2 weeks) Social Responsibility & SEM for Nonprofits with Jamie Welsh
Jamie Welsh of 10 Percent Solution talks with Byron Gordon of SEO-PR about her organization’s work to certify companies with respect to three categories: philanthropy, as defined through the donation of five percent of pre-tax profits or one percent of sales; volunteerism through individual employees; and green sustainability.
5. (with 80 views) Measuring Web 2.0 with Star Trek & SiteLogic’s Matt Bailey
Matt Bailey of SiteLogic Marketing talks Trekkie lore and web analytics with Jamie O’Donnell of SEO-PR about his SES San Jose 2008 panel on Web 2.0 measurement. Matt’s famous Star Trek/Web Analytics mashup played well at the show as he explained the increasing likelihood of Enterprise ensigns’ chances of survival given various circumstance, including the color of their shirts, shuttlecraft landings, and the captain’s amorous liaisons.
6. (with 78 views) Johanna Wright of Google on Google Universal Search
Johanna Wright of Google talks with me about Google’s Universal Search platform, which integrates various online media in its search results page to offer searchers a wider selection of relevant results. Johanna gives some insight for SEO (search engine optimization) pro’s into how the vertical backends are put together and advocates a thoughtful approach to making information accessible to Google through use of sitemaps and detailed descriptions.
7. (with 76 views) Lee Siegel Punches the Internet
Lee Siegel, author of Against the Machine, talks with Kevin Ryan of Search Engine Strategies and me about why the internet is an abuse — and not a use of the internet for human life. Well, that’s the big-picture idea, at least. Mostly he just beats up on Gawker. No objections here…?
8. (with 63 views) A/B Test Experts Tim Ash and Bryan Eisenberg
Tim Ash of SiteTuners and Bryan Eisenberg of Future Now, two A/B testing gurus, talk landing page testing shop on the conference floor at SES San Jose 2008. Tim and Bryan discuss the crucial nature of testing for the bottom line with the triple threat of incrased online competition, rising PPC costs, and a recession economy. Tim also talks about SiteTuners’ new self-service portal which opens up, for the first time, some of SiteTuners’ large-scale multivariate testing tools to in-house SEM’s (search engine marketers).
9. (with 57 views) How Much Search is Enough - Kevin Ryan at SES San Jose 2008
Kevin Ryan of Search Engine Strategies (SES) talks with Byron Gordon of SEO-PR at SES San Jose 2008 about his panel on holistic approaches to online marketing, in which he and the other agency panelists investigated what the appropriate mix of search and other online mediums was in properly integrated campaigns. Kevin relays some tips from the speakers regarding how to experiment in order to make the most of your online presence.
10. (with 54 views) Soothware Online Advertising Platform Intro with Tim Ogilvie
Tim Ogilvy of Soothware chats with John Mulligan of SEO-PR about his company, Soothware. Soothware helps advertisers manage their search advertising and display advertising campaigns in one place, tapping into Google and the RightMedia ad Exchange.
There are more videos on the SESConferenceExpo’s channel — and another 20+ videos from SES San Jose 2008 over on the WebProNews Video Blog. And you’ll find even more videos from the event at SEOWebTraffic’s Channel, SocialJulio’s Channel, StepForth’s Channel, HHeitzman’s Channel, SageRock’s Channel, ChrisDaviesCa’s Channel, misiggaes’ Channel, and HudsonHorizon’s Channel.
While you really had to be there to catch all the action, at least now you can get some samples of the what turned out to be the best attended SES of all time. That’s right. There were more people at SES San Jose 2008 than attended SES New York 2008 or SES San Jose 2007 — the next two biggest shows.
Microsoft has reached an agreement to acquire Greenfield Online, the owner of Ciao, a European price comparison and shopping site. This seems to be in line with Microsoft’s strategy of focusing on building up focused areas of search.
Ciao also includes consumer reviews and ratings with its search results. They boast a multimillion-user-strong online community and see more than 26.5 million unique visitors per month across seven countries. So far, more than 5 million product reviews have been generated.
Ciao joins Farecast, FAST, and Powerset in Microsoft’s portfolio of search-related acquisitions for 2008.
“Ciao’s success has been led by a team of talented people who took a unique combination of intuitive technology and the insight that comes out of their passionate consumer community to become one of Europe’s leading shopping comparison sites,” said John Mangelaars, vice president, Consumer and Online, Microsoft Europe, Middle East and Africa. “This makes the company a fantastic asset to the future of our search offer. Integrating Ciao’s capabilities into Live Search will provide a strong launchpad for our commercial search offer in Europe and enhance our e-commerce offering on MSN.”
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The [...]
According to an exclusive story in the National Journal Online, John McCain has outspent Barack Obama for two consecutive months in search engine advertising.
Written by Lucas Grindley, the story, entitled, “McCain buys his way to top of Google,” cites Nielsen Online data that shows McCain bought 7 million “sponsored search link impressions” in June and 5.4 million in May, compared with 1.15 million for Obama in June and 1.8 million during the previous month.
Since search engine advertising is sold on a cost-per-click (CPC) basis instead of cost-per-thousand impressions (CPM), it’s unclear if McCain’s dramatic lead in impressions generated equally dramatic number of clicks.
It’s worth noting that one of the top five sites where McCain bought image-based banner impressions was … the National Review. However, the other five included Topix and The Washington Post, so it’s not clear that you can read anything between the lines here.
By comparison, the top five sites where Obama bought image-based banner impressions included Yahoo, CNN and MSN. Plus, Obama bought 80 million banner impressions in June, compared with McCain’s 16 million.
So, what’s all this mean to search engine marketers?
For his story, Grindley interviewed Peter Greenberger, who manages the “small but growing” elections and issue advocacy team at Google. Greenberger speculated that the Presidential campaigns were in a “persuasion phase,” where candidates might be more interested in banner advertising.
“You are not looking for that active voter who maybe knows who he or she is voting for,” said Greenberger. “You are looking for that more passive voter who is reading information but not quite ready to commit.”
Hmmm. I wonder if Greenberger has seen the new study conducted by Enquiro Research with Google in Europe that found the ability of unclicked search ads to build brand. If he hasn’t, he can click on “Digging Still Deeper Into The Search Branding Question” and read the blog post by Gord Hotchkiss, the CEO of Enquiro.
Of course, Gord would be the first one to tell you that the debate over the search branding question is far from over.
But, if I were working in the McCain or Obama campaigns, I would run, not walk, to get my hands on the latest research. Gord is a Canadian, so he doesn’t have a horse in this race. And, if this upcoming election is as close as the latest polls indicates that it is, then neither presidential campaign can afford to leave even a small amount of search branding value on the table.
As for the search engine marketers who read this blog, I would also encourage you to run, not walk, to get your hands on this latest research. As Gord says, “search can be the most important brand tool in a marketer’s arsenal, if it’s used in the right place. It’s a matter of understanding what search can do and what it can’t. And, even more importantly, understanding how to measure that value.”

Microsoft launched a limited time promotion today called Back-to-School Deal Days for Live Search cashback. The promotion lets customers save big (and in some cases double the rewards) from hundreds of participating online retailers.
The back-to-school season is the second largest retail season of the year. That bodes well for Microsoft’s share of searches as they continue to compete with Yahoo for (a distant) second place.
Live Search cashback offers ad-funded cash rebates to customers using the service. Live Search also offers price comparisons, making side-by-side price shopping quicker and easier.
A recent survey from Deloitte found that during this back-to-school shopping season, 71 percent of households plan on spending less on back-to-school items than they have in previous years. With consumers feeling financial strain from higher gas and food prices, Live Search cashback is offering back-to-school shoppers extra savings to stretch their dollars further.
Back-to-school savings start today and will run for a limited time during the month of August.
How It Works: Online shoppers can search, shop and get cashback rebates from hundreds of participating online stores through the Microsoft Live Search cashback program, which launched in May. Current retailers include Barnes & Noble.com, Overstock.com, Sears, Foot Locker and Zappos.com, among many others. This month, the cashback return is even higher with Deal Days.
Here are a few examples of the bargains:
Rebate of 36 percent on Jordan Men’s AJF 12 basketball shoes from Foot Locker
Rebate of 18 percent on Lenovo ThinkPad X61 Tablet PCs from Zappos.com
Rebate of 30 percent on The North Face Doubletrack backpacks from eBags
Consumers can save money each time they use Live Search cashback. For every qualifying purchase, the shopper will be sent an e-mail message confirming the Live Search cashback savings. Consumers’ cash can be claimed when their Live Search cashback balance hits at least $5, 60 days after the purchase. Microsoft will provide the rebate one of three ways: via PayPal, check or direct deposit into a bank account.
Search engine marketers in the US tend to look West when trying to spot new SEM trends. As Frederick Jackson Turner first observed back in 1893, the frontier has always had a significant influence on American perceptions.
But, if you stare into the sunset too long, you might not see the other “new frontier” North of the Canada-United States border that’s also shaping search engine marketing trends. While Search Engine Strategies Toronto ended last week, I’m still sorting through some of the new SEM trends that I spotted by looking in a different direction.
One of the more intriguing trends that I noticed was this one: More than 80 employees of the Yellow Pages Group (YPG), Canada’s largest directory publisher, attended SES Toronto. YPG also owns and manages Canada’s most visited online directories, YellowPages.ca and Canada411.ca, so the company is no stranger to local search or Search Engine Strategies Toronto.
Now, I’ve often encouraged SES alumni as well as first time attendees of Search Engine Strategies to “bring a couple of colleagues along with you” to an upcoming SEM conference. And I’ve seen companies send teams of more than a dozen people to other SES conferences. But, I’ve never seen a group quite as large as the one I saw at SES Toronto last week.
So, I tracked down one of the key players behind this new trend. His name is Darby Sieben and he’s the Director of Online Services at the Yellow Pages Group. You can watch my interview with Darby on the SES Conference Expo channel on YouTube.
Yellow Pages’ Darby Sieben at SES Toronto 2008
Or you can read my interview with Darby Sieben of the Yellow Pages Group below. He has some very interesting insights into small and medium-sized enterprises (SMEs).
Q: The Yellow Pages directory story started 100 years ago by connecting Canadian buyers with sellers. YellowPages.ca went online in 1995. Has the Internet dramatically changed the way people approach the shopping experience?
A: Yes and No. By this I mean, the need of connecting buyers and sellers has not changed and never will. The way in which they go about doing it has changed and will continue to evolve and the Internet is only one way. Consumers are more complex today and depending on the need and particular circumstances will connect using a combination of ways including print, internet, voice, mobile, etc. The key piece of advice to a SME in this evolving world is to understand that this is about syndication of their information across multiple media platforms.
Q: According to comScore Media Metrix, the Yellow Pages Group reaches 41% of all online Canadians — and ranks #8 out of the top properties in Canada. In the United States, the SuperPages.com Network reaches about 16% of all online Americans and ranks about #21 out of the top properties in the United States. What’s going on in the Great White North?
A: The main difference between Canada and the US is the fact that the Yellow Pages brand in Canada is trademarked; we are the sole owners and users of the brand. In the US, the value and strength of the brand has been diluted as there is confusion. Second, I believe we are a very progressive directory player. We were the first to sign a deal to license data to Google, we work with all the major search players and we continue to push the envelope on technologies such as our 411 voice services, SMS, IM and our mobile platforms. Syndication of our advertiser’s information is very important. We believe in the anywhere, anytime and on any platform to get information.
Q: The content and keywords found in a print advertisement in the Yellow Pages Group and contained in a business profile on YellowPages.ca are fully searchable on the web and made available to your online partner network including Google, MSN and Yahoo! Isn’t that that a strange brew?
A: We don’t think so. If we examine a key barrier to search, that would be content. YP.ca and the search players are only as good as content that is digitized. The issue is that half of Canadian SME’s don’t have a website. We view print as the start of a very incredible journey for a SME because it contains very important pieces of content that consumers look for in the buying process. Those ads get digitized; keywords extracted, bucketized and distributed on YP.ca for our users as well as being pushed to search engines who index. It creates some incredible synergies and creates an ROI for our advertisers. To add one point here – a few years back we launched an initiative called the WebNumber. This is where we have mapped every phone number in our directory to a URL. For example – http://7804517857.yp.ca (this is the phone number for a Harley Davidson Dealership in Edmonton, Alberta). If you type that URL in – you land on their merchant page and can see their video and a host of rich content about that business. Many of our clients will register a domain name and simply point it to their page instead of investing in expensive design services.
Q: More than 80 people from the Yellow Pages Group attended Search Engine Strategies Toronto last week. Why did you bring everyone except the McKenzie brothers to the conference?
A: Well Bob and Doug are launching a cartoon version of their hit from SCTV to be aired this fall, so they were unavailable. On a serious note it is all about further learning’s and understanding. In 2007 we signed Canada’s first reseller agreement with Google and have bundled AdWords with our print and YellowPages.ca advertising. We also launched last year full customized search marketing solutions based on a budget spend and have been testing and continue to sell a guaranteed clicks product. To really become the CMO for small businesses you need to understand all sources of generating results for your customer.
Q: You mentioned that you are bundling Google with your print and YellowPages.ca advertising – isn’t Google considered a competitor?
A: We are definitely in a world of cooperative competition. You referenced ComScore earlier; here is a key fact that best explains the strategy. If we examine the unduplicated audience between Google Maps and our properties – what you realize is that there is a significant boost in audience reach. Both of us have around 31-32% reach and combined we reach over 50% - that is incredible for any SME who is looking to be placed in the path of consumers when they are making buying decisions. One thing I would like to add is that in terms of the purchase funnel – YellowPages.ca generates a very high ROI because by the time users come to us they tend to already know what they want to buy or are very close to a buying decision and need to do some comparisons. We tend to be further down the purchase funnel than search engines and the measurement for SME’s has to go beyond clicks to include phone calls and store visits. As we often say, nobody comes to YellowPages.ca to surf they come to buy and this remains a key focus for us.
Last week, Google launched Google Merchant Search. This week, Edward Cowell, Director of digital marketing agency Guava; says, ““Google Merchant Search will truly put the cat amongst pigeons for some of Google’s biggest search advertisers, the financial services comparison websites.”
Price comparison websites are big business in the UK and all the major industry players
advertise heavily on Google. Research by Resolution Foundation shows that 45% of UK adults used a comparison site to help them make a financial decision in the last year and that the price-comparison market is estimated to be growing at 30% a year.
That’s why the launch of the new service comes at a critical time for Google and its financial services advertisers. Says Cowell, “Most big financial services websites are just coming to terms with a marked increase in their paid search advertising budgets due to the recent changes in Google’s trademark bidding policies, so Merchant Search could be rubbing salt into the wound.”
Sites such as Ebay have boycotted Google Adwords by withdrawing its adverting when Google attempted to encroach on PayPal’s territory. So, uprisings are not unheard of in the search arena.
That’s why Cowell and the rest of the industry is waiting to see how the price comparisons companies react to the launch of Merchant Search.