Google Gives Advertisers Another “In” On YouTube

In a move that investors and marketers alike should applaud, Google's figured out another way to make money off the site it bought for $1.65 billion three and a half years ago.  Today, Google explained that it's come up with a tool to help small organizations advertise on YouTube.

Emily Williams, a member of the Inside AdWords team, explained on the corporate blog, "[W]e're announcing another new feature in Display Ad Builder that lets advertisers use simple templates to create InVideo overlays and companion ads on YouTube."  (FYI: "An InVideo ad is an animated flash overlay that appears at the bottom part of a video that a user is watching.")

Williams later continued, "Now, any advertiser can use Display Ad Builder to turn their image ads into overlays and run a campaign on YouTube in minutes.  Depending on the type of campaign an advertiser wants to run, overlays can be bought on a CPC (Cost Per Click) or CPM (Cost Per Thousand Impressions) basis, and can be matched to YouTube videos based on numerous criteria (like demographics or content categories), or even on a video by video level."

This could prove to be a very popular option, considering that takeover ads on the YouTube homepage are said to be sold far in advance for hundreds of thousands of dollars.  And the move also earns points for being low risk, since it probably didn't take much in the way of resources to execute and doesn't cut any privacy corners.

Now we just get to guess how much Google will actually make from the new feature.  One slightly relevant note: earlier this month, a Citigroup analyst estimated that YouTube will pull in about $1 billion in gross revenue this year.

Critical: Improve Your Mobile Search and Advertising Strategy

A Google exec recently said, "In three years' time, desktops will be irrelevant." That's debatable, but there's no question that mobile use will have grown much more than it already has. Based on comments in a recent keynote, Microsoft CEO Steve Ballmer doesn't seem to think PC use is going to drop too much, but he did say, "Mobile queries are just going to keep going up and up and up."

Do you think desktops will be irrelevant in 3 years? Share your thoughts here.

A study released last month found that the number of mobile phone subscribers is on track to increase from 4.6 billion to 5 billion globally by the end of 2010. Another study found that consumers are getting more comfortable with mobile shopping.

Mobile Search

Google has dominated the search market for a long time, and while this still continues to be the case, it's important to note that search in general changes with mobile. People are searching in different ways than just using their favorite search engines. They're using different apps. They're using their voices. They're scanning barcodes for instant access to product information. The number of ways people are finding information with their phones is only going to keep increasing. On mobile, it's not just about Google, Yahoo, and Bing.

That's not to say these three aren't still incredibly important to mobile. In fact, the search share among these top search engines may even become more greatly divided as time goes on. We're seeing different mobile carriers and manufacturers making deals with these companies, which affect the default search options for various devices. As we discussed before, mobile search engine use may be largely dictated by device popularity, which is (in my opinion) one of the biggest things Bing will have going in its favor in terms of market share - Microsoft's new Windows Phone 7 phones will come with Bing hardware keys, meaning the most convenient way to search on these devices will likely be to hit a single button taking the user to Bing. If these devices become popular, it could be huge for Microsoft in search.

As far as Google indexing and mobile sites goes, Google's Matt Cutts says, "If you can find a way where your existing site will work well in mobile browsers, we're not worrying about supporting two completely different sites."

To learn about this subject in more detail, read the Google Webmaster Central Blog posts: Help Google Index Your Mobile Site, and Running Desktop and Mobile Versions of Your Site.

Mobile Search Advertising

When it comes to AdWords, Google says to create separate, mobile-focused campaigns so you can optimize keywords, ad text, and landing pages for people using mobile devices. Google shared an interesting case study this week looking at Razorfish's mobile AdWords approach. They shared the following details:

- The Razorfish team started by duplicating the existing desktop campaigns and switching the settings to target mobile devices with full internet browsers.

- Since their client had a well-known brand name, they focused on branded keyword terms with enough traffic to help them learn quickly about what was working best for their campaigns.

- To measure performance, they tracked several conversion metrics including whether a mobile user looked up the brick and mortar store location or downloaded a coupon from the website. Right away, they saw a 7.5% lower cost per conversion on mobile devices, encouraging them to test ways to optimize their mobile campaigns.

- Razorfish tested whether variations in the campaign's landing page would affect conversion rates. The team hypothesized that mobile users might be looking to take a specific action, and by starting the user's experience closer to that action, the client would see better results. As it turned out, for this client, they saw much higher conversion rates when the user was directed to a landing page that showed nearby store locations.

- Finally, they tested variations in the ad text. Four versions of ad text were tested, including the original copy used in desktop campaigns. Each of the three new versions provided over 9.3% lift in conversion rate over the strongest performing copy in their desktop campaigns.

When it comes to Yahoo and Microsoft search advertising, things are about to get more appealing here in general, and presumably, that includes mobile. Microsoft and Yahoo advertisers will have the audiences of both search engines to view ads once Yahoo and Bing get their integration done.

Wrapping Up

One of the most important things any search marketer can do with regards to a mobile strategy, is to simply keep up with the latest mobile trends and innovations. This space is rapidly evolving, and new apps are released frequently. Pay attention to hot apps, and how your target audience is engaging with them. What devices, operating systems, and browsers are hot? Monitor studies and surveys that delve into demographics. Try to stay ahead of the curve.

Do you have a mobile search strategy? What suggestions do you have for improving in this area? Comment.

eBay Loses Court Case To Louis Vuitton

The Paris District Court ruled today that eBay is liable for harming the reputation of luxury goods maker Louis Vuitton through its use of trademarks, company name and domain name.

The Paris court has ordered eBay to stop using keywords which harm the reputation of the Louis Vuitton brand to promote its sites and will impose penalties of  $1,372 (1,000 euros) for future violations.

"Louis Vuitton welcomes this decision, which confirms established case law that aims to protect the consumer from the illicit use of company trademarks," said Nathalie Moull-Berteaux, Global Intellectual Property Director of Louis Vuitton.

The court also ordered eBay to pay $274,407 (200,000 euros) in damages to Louis Vuitton. eBay has also been ordered to pay $41,161 (30,000 euros) to reimburse the legal costs of Luis Vuitton.

"This case is about the use of Adwords to direct buyers' listings for authentic goods from eBay sellers," said Yohan Ruso, director general of eBay France.

"This issue is being used by certain Rights Owners as an excuse to retain total control of what people can buy, where they can buy it from, and how much they have to pay. This is why 750,000 Europeans signed a petition to the European Parliament last year, protesting barriers to Internet trade."

 

UK’s Department Of Health Reveals $4.25m AdWords Tab

Google users in the UK may be unusually well-informed with regards to their government's healthcare policies.  The Department of Health revealed this week that it spent about 2.72 million (or $4.25 million at the current exchange rate) on AdWords over the past year.

To be exact: the department spent 2,720,457.11 between February 1 of last year and January 31 of this one, according to official records.  And a whopping 21,939 keywords (including ones like "health information" and "stop smoking") were covered by its campaign.

As reported in a Smart Healthcare article, a Department of Health spokesperson explained this huge endeavor by stating, "The Department of Health's campaigns are designed to deliver better health, whether they be to help people change their behaviours to protect their long term health, to signpost people to NHS services, or to encourage healthier lifestyles."

The spokesperson then further justified the AdWords campaign by adding, "The campaigns are evaluated using a combination of robust techniques that help us identify exactly what works, so we know that these campaigns are saving lives."

That acts as a nice sort of pat on the back for Google.  The search giant no doubt appreciates the UK government's money, too.

Have You Read This?

> Google Narrows Down Mobile Ad Targeting

> Report Suggests More Revenue, But Fewer Advertisers For Google

> Google Now Rejecting AdWords Ads Without Proper Display

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