BCA

From: World Advertising Research Center (WARC)

Google has rolled out a modified search algorithm across its English-language services, in a bid to downgrade the rankings of low-quality content.

The algorithm was first released in the US just over a month ago. According to the search firm, the change affects the ranking of 2% of US sites.

Writing on Google’s Webmaster Central Blog, Google Fellow Amit Singhal said: “We’ve gotten a lot of positive responses about the change: searchers are finding better results, and many great publishers are getting more traffic.

“We’ve found the algorithm is very accurate at detecting site quality.”

Commenting on the move, digital marketing specialist Econsultancy said: “Google’s drive to boost the quality of its index is, of course, a very good thing in principle, and publishers focused on providing high-quality content will hope that the changes reward them for their efforts.

“At the same time, however, one has to wonder if the speed at which Google is changing its algorithms and its desire to publicize those changes is motivated more by a genuine desire to improve the SERPs, or by a genuine desire to create the appearance that it is.”

Details on the nature of the algorithm’s change still confidential

The precise nature of the algorithmic change has not been revealed by Google, though Singhal pointed out that in “high-confidence situations”, sites blocked by users are beginning to be incorporated into the data.

Google recommended that publishers whose search rankings are affected by the changes contact the company.

“While we aren’t making any manual exceptions, we will consider this feedback as we continue to refine our algorithms,” Singhal added.

Series of changes to improve services

The algorithm change represents one of a series of innovations by search engines over recent months as they attempt to improve their services to users.

For example, Bing, a Microsoft-owned site, has begun to incorporate social media content by including “likes” registered by users’ Facebook friends in its results pages.

Data sourced from Google/Econsultancy/Warc/comScore; additional content by Warc staff15 April 2011

From: e-Marketer

 For complete data charts and story, go to e-marketer.com

Boomers’ lives are going in many different directions, as empty-nesters, step-parents, grandparents and caregivers. For all of these roles, the internet and digital media are absolutely essential.

eMarketer estimates 78.2% of this cohort is online, nearly 60 million adults. Even as their numbers decline, that penetration rate will remain high through 2015. And they control more than $2 trillion in annual spending.

“The baby boomers grew up being chased by marketers and advertisers that tailored products and brands to appeal to them,” said Lisa E. Phillips, eMarketer senior analyst and author of the new report, “Digital Lives of Boomers: Reaching Them Online.” “Now the median age of this cohort is 55, and many boomers feel as if they have dropped off many marketers’ radar.”

Boomers spend more time and money online than any other demographic. Younger boomers (ages 47 to 55) spent an average of 39.3 hours online per month in 2010, according to the Pew Internet & American Life Project. Older boomers (ages 56 to 65) averaged only slightly less, at 36.5 hours. A lot of that time was spent shopping—and buying. Forrester Research reported that boomers spent an average of about $650 online over a three-month period in 2010, compared with $581 by Generation X internet users (ages 35 to 46) and $429 by millennials (ages 18 to 34).

Boomers also stay connected on the go. eMarketer estimates 86.9% will have a mobile phone this year, and 16.9 million boomers will access the internet from a mobile browser or installed app. In 2015, that number will reach 25.4 million, or nearly 40% of boomer mobile users. This is a market that content providers, game publishers and brand marketers should not pass by.

Marketers who widen their messages to include boomers would be wise to make their efforts ageless, rather than targeted at an older set.

Most brands do not want to “age” their products

“Boomers are immediately turned off by association with old age, infirmity and decline,” said Phillips. “Most brands do not want to ‘age’ their products with blatant appeals to older consumers. The win-win is to create an overarching brand message that gives a nod to boomers, but also includes younger adults and even grandchildren.”

This often means turning a negative—fears about failing health, for example—into a positive, such as showing the benefits of products that contribute to a healthy lifestyle.

The full report, “Digital Lives of Boomers: Reaching Them Online” also answers these key questions:

• How do baby boomers use the internet differently from other age groups?
• What other kinds of technology do boomers use?
• What forms of social media appeal most to boomers?
• How do you talk to an audience that avoids advertising?

For complete data charts and story, go to e-Marketer.com

From: World Advertising Research Center (WARC)

Competition is intensifying in the mobile apps sector, as major players like Amazon, Google, Microsoft and Apple all seek to attract an audience.

Online retailer Amazon has this week started selling applications for smartphones and tablets using Google’s Android operating system.

The company’s Appstore was introduced with roughly 3,800 such tools, including those for Newsweek magazine, Zagat’s consumer-generated restaurant reviews and an offering from travel specialist Kayak.

“It’s day one for us, and we’re adding new apps every day,” Aaron Rubenson, Amazon’s category leader, mobile services, told the Seattle Times.

“There are literally hundreds of thousands of apps available, with new ones coming every day.”

Amazon is providing one free app each day

In promoting the latest addition to its portfolio, Amazon is providing one free application each day, and lets people “test drive” apps for around half an hour before choosing whether to buy them.

Leveraging its ecommerce site, the Appstore will also give visitors recommendations based on an individual’s purchase history, for example suggesting recipe apps to someone who recently acquired kitchenware.

“While that breadth of selection is interesting, it can make it difficult for customers to select products that are relevant to them,” said Rubenson.

Emphasis is on having a great selection

“We focus on having great selection and helping customers find products that are right for them.”

Ben Schachter, an analyst at Macquarie Securities, argued Amazon should benefit from its existing capabilities in the internet arena.

“The mobile apps ecosystem has its unique challenges, but we believe Amazon’s strength in online retailing and digital delivery position it to be a leader here,” he said,

Research firm Forrester estimates smartphone app sales will reach $4.5bn worldwide this year, and $1.1bn on tablet equivalents, totals expected to hit $29.4bn and $8.1bn respectively by 2015.

Amazon has a huge base accustomed to paying for goods

Sarah Rotman Epps, a technology analyst at Forrester, stated the fact Amazon already boasts an enormous customer base schooled in paying for goods via its interface might be advantageous.

“Consumers interact with Google all the time, but not with their credit cards,” she said, adding that Amazon could “change the economics of apps” for Android as a result.

To date, iPhone subscribers have proved more willing to download paid-for apps than Android counterparts.

Apple’s App Store contains 350,000 options – ahead of Amazon and Android’s 130,000 – while the manufacturer of the iPad and iPod holds details about 200m credit card accounts.

Credit cards are the coin of the realm

“That’s the coin of the realm – people who have secured their accounts with a credit card,” Michael McGuire, a Gartner analyst, said.

“You have a lot a choices all coming back to that one credit card. Google certainly can’t claim that.”

McGuire added: “Developers will look at momentum. Will Amazon build new devices? How much is Amazon investing in its ecosystem?”

Apple is trying to trademark App Store term

In an indication of the fierce rivalry now emerging, Apple has attempted to trademark the term App Store, and is suing Amazon for employing a derivative of it.

“Amazon has begun improperly using Apple’s App Store mark in connection with Amazon’s mobile software developer program,” the organisation’s lawsuit said.

“Consumers of mobile software downloads are likely to be confused as to whether Amazon’s mobile software download service is sponsored or approved by Apple.”

Microsoft, another possible actor in this area having rolled out the Windows 7 Phone, has previously also opposed Apple’s moves.

“An app store is an app store,” Russell Pangborn, Microsoft’s associate general counsel said earlier this year.

“Like shoe store or toy store, it is a generic term that is commonly used by companies, governments and individuals that offer apps.”

Data sourced from Wall Street Journal, Seattle Times, Financial Times, BBC; additional content by Warc staff24 March 2011

From: World Advertising Research Center (WARC)

 Facebook, the social network, is seeking to provide solutions helping brand owners forge substantive “associations around people.”

Speaking to AdAge, David Fischer, Facebook’s vp, advertising and global operations, suggested its core strength lies in offering an intrinsically interactive experience. “The web can be the best branding opportunity if you think about creating associations around people,” he said.
“Part of what’s so exciting about Facebook, it’s clear that what drives change and motivates people to act is other people … It’s about how you tell stories through people.”

“People, really, is the operating system that drives all of our behaviors. It’s the organising principal that drives us. I’m seeing that come to life via Facebook.”

Having previously worked for Google, Fischer argued the rapid rise of Web 2.0 platforms across the globe constitutes the next stage in the internet’s development.

“Search has been an incredible advancement, but the opportunity for brands that the web has always represented – there’s an opportunity to fulfill that through Facebook that you hadn’t had before,” he said.

Coke leads the way

Among the most successful firms here at present are soft drinks giant Coca-Cola, boasting 22.7m fans, and coffee house chain Starbucks, with 19.8m. “Those millions of connections are not the end. It’s just the start. Those millions are the means to the end,” said Fischer.

“It’s a way to build relationships with those people, and then to tap into all those people’s friends. It’s an opportunity to do word-of-mouth marketing at scale.”

Indeed, Facebook is empowering companies as much as consumers, thus meeting a range of traditional needs in new ways.

“As we build out the social graph, there’s an opportunity for brands to rebuild their businesses themselves,” said Fischer. “Marketing is key to that, and so is customer acquisitions and customer relationships.”

Always on is an essential strategy

Another essential strategy takes the form of an “always on” approach, from setting up pages to handing insider status to their followers, stimulating viral traction.

Ford, the carmaker, launched the latest version of the Focus in this way, demonstrating such a process in action.

Nike’s ‘Write the Future’ video, for the FIFA World Cup in South Africa, also attracted 3m Facebook members, delivering considerable WOM.

“In the world of marketing, we think about paid media, owned media and earned media – all three exist on Facebook,” Fischer said. “As you build up more connections, each thing you publish, you can build more and more ongoing connections.”

“Sponsored stories”, which determines when netizens choose to “like” a brand, creates an ad featuring the names of the relevant person and product, and then displays it to their contacts, have also proved effective. “That impact of having a name will increase brand awareness by 68%, and it has a four-times increase in purchase intent,” Fischer said.

Building brand associations is powerful

“That really is the power. And that’s the kind of brand associations we’re trying to build for companies. Branding should happen around people.”

Although Facebook has rapidly become one of the biggest sources for display ads in nations like the UK and US, it only hosts a single homepage ad at any given time, and encourages clients to target specific demographics.

“We do want the messaging to pop. At the same time, we’re careful to avoid an intrusive experience,” said Fischer. “We do what we think will be appealing to markers and be useful to our users. That’s why we don’t sell home page takeover for an entire day.”

“Marketers have to understand the opportunity goes far beyond the particular box on the home page.

Data sourced from AdAge; additional content by Warc staff, 2 March 2011