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Even after you’ve won the client’s business and run a successful program, you still have to show the client what you did for their money. In today’s SEM agency issues column, “Great Expectations: How to Communicate SEO Value,” William Flaiz points out that communicating the value your search program provided is not to be taken lightly. It could mean the difference between a renewal and a one-off client project.

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Click Forensics has released click fraud data for the third quarter of 2008. Overall, click fraud declined slightly. And by slightly, I mean barely noticeable.

• The overall industry average click fraud rate was 16.0% for Q3 2008, down from 16.2% reported for both Q2 2008 and Q3 2007.
• The average click fraud rate of PPC advertisements on search engine content networks was 27.1 percent, down from 27.6% in Q2 2008 and 28.1% in Q3 2007.
• Traffic from botnets was responsible for 27.6% of all click fraud traffic in Q3 2008, up from 25.2% for Q2 2008.
• In Q3 2008, the greatest percentage of click fraud originating from countries outside North America came from Russia (4.9%), France (4.8%) and the U.K. (3.5%).

Click Forensics president Tom Cuthbert had this to say about the data:

For the past two quarters the industry average click fraud rates seem to be hovering around the 16 percent level. Gains are being made by advertisers taking more action to proactively filter out fraud before it affects online campaigns. However, the growth in click fraud traffic from botnets continues to rise and it should be one of the top areas advertisers and the industry should monitor closely.

Related Reading:
Q1 2008 Click Fraud Down from Last Quarter, Up from Last Year
Lycos Partners with Click Forensics to Improve PPC Quality
Google, Yahoo Launch Click Fraud Resource Centers

According to a new report from eMarketer entitled, “Video Advertising Online: Spending and Pricing,” online video advertising will peak at 78.9% in 2012 — when “both traditional and alternative media companies will be distributing far more professional-quality video content online, and when the national elections and the summer Olympics will contribute far more to video ad spending than they will in 2008.”

That doesn’t mean that growth has been anemic this year. According to eMarketer, this year’s 55.9% increase in online video ad spending is a key indication that the channel is at least gaining speed — accompanied by parallel growth in the kind of trusted video content, such as sports, to support it.

David Hallerman, senior analyst at eMarketer and author of the new report, says, “Next year, there will be slightly slower growth, due to the still-struggling economy and the fact that advertisers are working out the best ways to do online video ads.”

He adds, “Marketers want video advertising for its far-greater branding power than other online formats.” Meanwhile, “Publishers want video advertising for its far-greater revenues — or at least higher CPMs—than other online ad formats.”

Stay tuned to see what happens next.

Google News has announced that they will be testing updates in the coming weeks. Only a few users will see the “experiments,” which will be based on research and feedback. Expect any changes to be related to the design of the site and the “evolving state of online journalism.”

Back in 2006, Google explained its testing process. “To learn more, we sometimes randomly select a group of people to see a possible improvement to search options. Or we may select a group of people and try out a new element while they’re searching. If you ever wonder why your Google site looks slightly different from that of the person sitting next to you, this is why.”

If you see any changes to Google News, let us know in the comments!

Related Reading:
Google News Clusters: Keep ‘Em Un-Separated
Google Finally Copies Microsoft, Adds ‘Related Searches’ to Google News
Google News Unveils Two Updates to Comments Feature

Search Engine Strategies Toronto is coming up June 16-18, 2008. To give attendees a sneak preview of some of the trends in search engine marketing that will be discussed at the event, we’ve interviewed Ken Jurina, the President and CEO of Epiar.

Ken will be one of the speakers at the “SEM Toolkit: Marketers Share” session, which will be held on Wednesday, June 18, from 12:45 to 2:00 p.m. And Epiar and Yahoo! Canada will be hosting The Official Search Engine Strategies Toronto After-Party on Tuesday, June 17.

But, we interviewed Ken primarily for his expert opinion. Scoring tickets to his party was only a secondary consideration. (As Maxwell Smart would say, “Would you believe I’m from New England, which still thinks the term ‘party’ means Boston Tea Party?”)

Seriously, as president and founder of Top Draw and Epiar, Ken has more than 15 years of expertise in traditional advertising and Internet marketing. And I’ve heard him speak at SES New York, Chicago, San Jose, and Toronto.

Q. Can you give me a brief overview of some of the trends the search marketing industry is seeing this year and what the next 5 to 10 years might look like?

A. The Microsoft bid for Yahoo! accompanied by the subsequent bid withdrawal, along with the much talked about Google-Yahoo! search advertising partnership have certainly resulted in much speculation regarding the future of search marketing as we know it. I also don’t think the deal is entirely off the table just yet.

Ask’s withdrawal from mainstream search as it abandoned its efforts to compete against the search giants in March has also affected the search landscape. Over the last 12 months Google’s search share has increased slightly, Yahoo! search share has remained stagnant in aggregate, and Microsoft’s share has fallen.

If we look at trends from the perspective of consumer behavior we continue to see increasing growth in the use of image and video search. Another consumer trend significantly affecting the search marketing space is the astronomical increase in the influence of social media marketing, in the form of consumer feedback and reviews, on brands, ecommerce conversions and tactical refinements of on-page content.

Google’s Universal Search results have been seen to have an impact on the traditional F-shaped heat maps generated by eye-tracking studies as eyes are now first drawn to image and video search results. The inclusion of the OneBox, as well as Sitelinks and ‘Search Within a Site’ search box features, are all affecting the usability of the results in the organic listings. User interaction is facilitated by these features and the probability is that the trend in click-throughs will skew towards increased searcher interaction with more ‘visible’, usable, graphic listings – assuming the relevancy factor is retained.

Google has also recently revised its display URL protocol in AdWords, and has been experimenting with the inclusion of video results in the paid search listings.

As to what the future holds, I think current behavioral trends and further improvements in the relevance and universal appeal of results provided by the search engines will continue unabated. However, based on the dramatic events in the industry in the last few months alone, at this stage I think it would be fool-hardy and irresponsible to attempt to predict anything more specific.

Q. How will marketers have to adjust their budgets to compensate for the upcoming changes?

A. Marketers should seriously consider budgeting for continued SEO initiatives, particularly regarding Internet market research on consumer search behavior. Assigning marketing dollars to image and video production and optimization is imperative, as is integrating with relevant social communities. Brands need to aggressively begin to empower brand proponents and embrace reputation management (RM) tools. RM has only recently gained the recognition it should have attained years ago. With the huge growth in both social influence and social media marketing, and the impact of reviews and consumer feedback on online purchase decisions, the need for brand transparency is becoming ever more important. Consequently, the need to facilitate consumer feedback and interaction is key to future success in the search and ecommerce space.

Q. How important is it to understand all the online touch-points of your visitors?

A. This answer is basically an addendum to the previous one. Understanding where and how your online market interacts online, what they do, and what they want, need and expect to achieve at each touch-point is imperative.

Meeting them on common ground in forums, on blogs, and in the social space is very important. Openly dealing with detractors and embracing and supporting evangelists is best done in this space.

Consumer exposure to your brand and online offering is unlikely to be limited to the information housed without your official web site. Review sites, feedback consumer forums and blogs are going to discuss businesses with or without official permission – freedom of expression online has reached previously unimagined new heights as regards the impact of this freedom on brand reputations. Proactively embracing the social space via RM tools and facilitating interaction on your own blog or site is no longer something to merely be considered, it has become a necessity. Advertising these social – touch-points via paid search is also something to be considered.

Q. When we talk about “tricks of the trade” used by search marketers, can you share a bit on what kind of “competitive intelligence” is required and what exactly is “exotic analytics?”

A. RM tools allow you to see what’s being said about you and your competition in the online space. Internet market research allows you to see how your consumers are behaving online and what terms they are utilizing when searching for your offering.

By understanding what your online market is really looking for – not what you think or want them to look for – can provide competitive intelligence on brand awareness and market share. It can also identify new product or service opportunities, consumer feedback and trending data, and a host of other factors that will allow you to refine your online offering.

As for “exotic analytics”, different web analytics software packages offer different levels of service and different features. Some are highly advanced for sure – trying to predict visitor behavior based on trending for example. However, a wealth of information is available through the basic measurement standards if it is analyzed properly and thoroughly.

Q. What excites you about Search Engine Strategies Toronto? What do you look forward to most?

A. The Epiar / Yahoo! Canada Party on Tuesday June 17 of course! There will be more details to follow closer to the event but you can expect it will be a party to remember like we are known for.

Q. Are there any advantages to being a Search Marketer based in Canada rather than any other place in the world?

A. Numerous advantages:
• 85% of Canadians have high-speed Internet access (one of the top ten levels of broad band penetration in the world);
• 94% of online Canadians interacted with Google and Microsoft sites in February;
• Canadian online business reaped $62.7B in 2007, an increase of 26% year over year, but the proportion of private sector companies who sold goods and services online remained relatively stable at 8%.

The market is big, it’s relatively untapped, and the returns are obvious. The future of search in Canada is promising. In fact, PricewaterhouseCoopers predicts that online ad spend will grow faster in Canada than anywhere else in the world over the next 5 years for two primary reasons:
1. high broadband penetration
2. lower online market saturation

It’s great to be Canadian, eh!

There seems to be a few cities in Texas that want the online travel industry to ante up millions of dollars in lost tax revenues - and there is a possibility this could move to the other states. Houston and San Antonio - guess Dallas would be next if the decider is towns with NBA teams - have filed suit against online travel companies for not paying the right amount of occupancy taxes dues.

“Hotels in Houston must remit to the city the hotel-occupancy tax of 7 percent, based on the price at which they sell rooms. The city uses the money to promote tourism and to pay off debt for Reliant Stadium, Toyota Center, Minute Maid Park and the Hilton Americas convention hotel”.

‘The city took in more than $57 million in the occupancy taxes in 2007,” a Houston City official told the Houston Chronicle.

“On Tuesday, a federal judge granted San Antonio’s motion for class-action certification in its lawsuit against 16 companies including Hotels.com, Expedia.com, Priceline.com and Orbitz. The San Antonio suit alleges the online companies collect hotel tax at the retail rate but only pay taxes on the bulk wholesale rate they are charged, ” WebProNews reported

Obviously the travel industry is claiming increased costs will have an impact on tourism. That is absolutely true, while the local governement may not collect the taxes and does lose - the money comes in the pockets of those who visit and thus the average spend of the customers will be less. So maybe the local chamber of commerces should think about that and talk to the mayor.

Bookings will be down slightly because of higher prices - even though the prices will just increase across the board so people will not recognize the jump. Either way in a time of high gas prices actions like this will only hurt the travel industry as a whole. There are not many travel agencies left and few would be looking to invest in one right now.

Once the most popular reasons for reinstalling your operating system is that it is often the easiest way to deal with a preponderance of viruses, spyware and other collected nasties that find their way onto your computer. So when reinstalling, it make sense to secure your like-new PC as best as possible. Here are five programs that make that possible.

AntiVirus – AVG Free
The most important security measure you can take on a new computer is protecting against viruses and Trojans. That’s where anti-virus software comes in. AV software, usually, runs in the background of your computer, analyzes new files received via email, downloaded or elsewhere to make sure they are safe. You can also schedule it to check your computer for viruses it may have missed, or manually check whenever you want.
For AV software to be good, it needs to stay up-to-date. For it to be tolerable to the user, it needs to run lightly in the background, and it needs to easily offer the user options to override it when it’s too aggressive, as nearly all anti-virus programs have been reporting too many false positives lately. AVG’s Free version accomplishes all that—and does it for free. Runner ups include NOD32, Kaspersky and BitDefender.

Anti-Spam – SpamBayes
Viruses may be the most dangerous problem possible affecting your computer, but Spam is probably the annoying. According to Akismet, nearly 90% of all email received is Spam. That comes out to 1,000 spam messages per day for an average user. While most of that Spam is trapped on your mail server, more than enough makes it through to your email reader, clogging up your folders, slowing down your email downloads and generally making finding real emails that much more annoying and tedious.

That are plenty of solutions for combating Spam, including the filters built into Microsoft Outlook, but I’m a big fan of SpamBayes. I’ve been using the open-source SpamBayes filter for more than five years now, ignoring newer and flashier filters. Why? Well, for one, it just works. It catches nearly all my Spam, and I get very few false positives. The way it works is also significant; like the name suggests, SpamBayes draws its power by using Bayesian algorithms to determine what is spam and what is ham. Simply stated: SpamBayes learns from you. Every time you tag a message as spam or ham, SpamBayes analyzes the email for clues as to what makes spam and what comprises ham. The more emails you tag, the smarter it gets.
SpamBayes is easily added on to Outlook, other desktop mail applications, webmail or even to your mail server. Set up is a breeze (just tag a few emails and go) and the program is light and fast.

Anti-Spyware – Ad-Aware and SpyBot
If viruses are dangerous and spam is annoying, spyware is the unholy marriage of the two; it slows down your computer, hijacks your home page and—as its name suggests—spies on you. It certainly annoys you, and can be very dangerous, either leaving your PC susceptible to viruses or stealing private data from you. Above all, it is intrusive. And it comes from some unlikely sources: companies you know, love and trust.
But you don’t have to succumb to it. Anti-virus programs like AVG will prevent most spyware programs from lodging on your computer, but there is more you can do. Firstly, read the End User License Agreement (EULA) on every new software program you install. Don’t just blindly click ‘Next’ when installing new programs. Secondly, download the above two programs: Ad-Aware and SpyBot. Both will scan your computer for spyware, adware and malware programs, and offer you the option of removing the programs they find. The free version of Ad-Aware won’t protect your PC in real-time, but you can upgrade to get that feature. SpyBot, which is freeware, includes TeaTime, which provides free real-time protection, including registry monitoring. SpyBot can even replace spyware programs with “dummy programs” so you can still run spyware-dependant programs. Between the two, you can remain completely spyware-free.

Extra Protection – Sandboxie
Even after all that protection, sometimes you need a little bit more. That’s where Sandboxie comes in. Sandboxie is a remarkable (and free) program that protects your PC from everything and anything run on it—by providing a virtual “sandbox” for that program to run it. Within the sandbox, no registry changes can be made and nothing can be installed to your actual PC; nothing bad can happen.

Someone sent you a program they swear is virus-free—and AVG also thinks it’s clean—but you’re still unsure about? Run it in the sandbox. You teenage niece is using your computer and you don’t want her messing anything up? She can browse the internet and work in Sandboxie. Son uses P2P software? No problem when it runs in Sandboxie. Don’t trust Internet Explorer? Set it to always run sandboxed. All downloads need to be approved by you before they can run. Executables run without affecting anything else.
And Sandboxie manages to give you all this protection without slowing down your PC. It runs quietly and unobtrusively in the background, and gives you that extra measure of protection you need.

comScore today announced the availability of comScore Video Metrix in four new markets: Canada, France, Germany and the UK. comScore Video Metrix, which was first launched in the US more than two years ago, now provides online video measurement across all five of these countries.

This enables search engine marketers “to better plan advertising to a highly-engaged, but often elusive audience, that typically spends less time with traditional media,” Jack Flanagan, executive vice president of comScore, said in a press release.

Of interest to search engine marketers planning to attend SES Toronto, comScore found that Canada has the heaviest online video viewing activity.

Of the five countries currently reported by comScore Video Metrix, online video had the highest reach in Canada, where 19 million viewers viewed a video online in December, representing 89 percent of the total online population age 15 and older. The UK was next with an 87 percent reach, followed by France with an 84 percent reach and Germany with an 81 percent reach. Penetration was slightly lower in the US, where online video reached 78 percent of the total online population.

Canada’s online video audience also viewed more videos than any of the other reported countries, averaging 112 videos per viewer for the month of December, followed by the UK with 108 videos per viewer, Germany with 92 videos per viewer, and France with 89 videos per viewer. Again, US activity was slightly lower, averaging 77 videos per viewer in December.

Driven largely by video viewership at YouTube, Google Sites led as the most popular online video destination in all reported countries. However, beyond this there were strong performances from key local players, with BBC Sites ranked second in the UK, DailyMotion.com ranked second in France, and Vivendi ranked second in Germany. Microsoft Sites was amongst the top 5 ranked video sites in the US, UK and Canada, but not in France and Germany.

Many search engine marketers have started creating online video on a much larger scale this year.

For example, the Search Engine Strategies Conference and Expo channel on YouTube now has more than 80 video interviews with speakers and exhibitors posted from SES London and SES New York 2008. Combined, they’ve received 10,932 views across all the videos as of this morning.

The most popular video in the SES channel is my interview with Nick Carr, the author of “The Big Switch,” conducted before his keynote presentation at SES London.

The Big Switch by Nick Carr — SES London 2008

And more video interviews are planned for SES Toronto 2008. So, stay tuned. Don’t touch that dial. Film at 11.

If you love advertising projections, then have we got some numbers for you. eMarketer has released new projections for both mobile advertising and online advertising.

This year, US mobile ad spending is expected to reach $1.7 billion, up from $878 million last year. By 2012, it will reach $6.5 billion in the US, but it’s the Asia-Pacific market that’s expected to dominate the mobile landscape by then, with the middle class in China and India making up the bulk of that demographic. Worldwide, mobile ad spending is projected to reach $19 billion by 2012.

Meanwhile, online spending is expected to continue growing, the the rate at which the growth will occur will decline, at least for a few years.

In 2008, eMarketer projects online ad spend to reach $25.9 billion, a 23% increase over 2007 spending. It’s slightly lower than their previous 2008 projection set at $27.5 billion, released in October 2007.

But in 2009, expect to see the growth rate drop to 15.8%, followed by 16.7% in 2010 and 17.1% in 2011. Things start to look robust again in 2012, when a recovered economy is projected to boost the online ad spend up by 24.4% and reaching a whopping $51 billion.

Related Reading:
Report: Online Ad Growth Slowing
The Offline Benefits of Online Advertising
Google + DoubleClick = 69% of Online Advertising Market
How Search Will Save Online Advertising… Again!