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Friday, September 12, 2008

Need A Little Chrome on Your Browser?

Google is a little like most politicians. They keep denying this and that, when it's obvious that they are going to something. In this case, it was create their own browser. Called Chrome, they had to finally let the cat out of the bag, when this clever comic book was discovered by the public before they were ready.

Although there are a lot of reviews and explanations for Chrome out there already, I'm gonna give my simple-minded spin. The comic explains the reasons, but it's somewhat technical, and definitely biased.

Chrome is Google's ultimate weapon. They know if you control the browser, you get to direct user behavior. Sure, the reasons are better speed, easier to run web apps, security, less crashing etc, but the REAL reason in my opinion was ensure they had a platform that they could control to make all the things they want work - work. And to ensure that Microsoft didn't stop them by not allowing it, or SLOWLY cooperating.

Firefox is already open source and does most of the things that Google needs. But they don't control Firefox, and besides Firefox is only about 18-20% of the market. And because Firefox can't be bought because of their company structure, Google put their tremendous resources to work and built their own.

So what that mean to you dear reader? You will have another choice to make. With all the free applications and tools from Google, you can be sure they will run better in Chrome. On the other hand, some things, especially Microsoft products (both paid and free) will likely not be as compatible. Think of it as what a browser was supposed to do, but without the wrinkles that Microsoft plugged in to make their browsers 'better'.

What I'm going to do is keep using Firefox, until I see a clear need to switch to Chrome. I might have Chrome on my desktop, in case something I'm using really needs to run in Chrome (just like I have IE on my desktop for IE 'enhanced' web pages), but otherwise, the last thing I need is another browser.

Where it does make sense is when they make Chrome usable on a PC without an operating system. Which is what I think is the ultimate goal. No Windows, just boot up your Netbook and use your browser for everything. Then your phone is next with Google's Android project. No wonder Microsoft doesn't like Google.

BTW, the comic book a lot better in my opinion than the Seinfeld/Microsoft commercials, because frankly most people don't get the commercial...the commercial has a pile of inside jokes while at least with the comic, you can ask somebody what all the geek means.

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Monday, May 05, 2008

Microhoo Deal Dead

Over 3 months after making a $44.6 billion bid for Yahoo, Microsoft has decided that 'clearly a deal is not to be done'. Microsoft's latest bid which upped the total price to $47.5 billion over the weekend, was rejected as inadequate.

So what does that mean? For one, it means I was wrong to expect that a 80% premium would be enough to convince Yahoo. And more importantly, it may mean that both sides didn't want to do the deal - which may be a good thing. Both sides have had over 3 months to get feedback from analysts, employees and even competitors as to the value of the merger, and if the point was to take on Google - they may have both figured out that this might have been a disaster.

From an online advertising standpoint, it will mean:
  • Google will get even stronger, especially in the short term
  • Yahoo might get better and be willing to change dramatically because of the scrutiny
  • Microsoft will have to grow this part of their business themselves, and get better at it.
For us and advertisers, I think this will mean we will have a more vibrant search engine marketing and online advertising industry. More competition usually means more innovation, choices and lower pricing. It will take some time to get there and it may hurt these industry giants but in the longer term, the rest of us should benefit.

One thing is certain. Online advertising and marketing is BIG, and getting bigger. If you haven't already, hitch your wagon to it.

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Friday, February 01, 2008

Microsoft Buying Yahoo

Well, it's finally happened. After a big dip in the markets, and Yahoo ready to layoff 1,000 employees, Microsoft made its move and offered $44.6 billion for Yahoo. That's Microsoft biggest bet yet, that the Internet advertising business is a large part of their future. Remember they spent $6 billion not long ago to buy Aquantive. So just those two now represent a $50 billion investment in online ads, search engine marketing and online marketing by MS.

You're probably thinking that this is a bid, not a done deal, which it is. I'm talking like it's a done deal because it will be - there is no way that the shareholders will turn this premium done, and there is no one else out there (save Google), who can beat this bid. And the anti-trust hurdles aren't there, because it's Google that needs to worry about that nowadays, rather than MS.

So what does this mean? Well for one, MS has finally admitted that they can't build a significant enough search and online ad business, because they are a band of techies who build software. And Yahoo, who is floundering because they depended more on display ads and portal content (like a media company), needs more Goog-like technical savvy. Does this mean it will work to catch Google? Only time will tell for sure, but I for one don't think so. The culture and mentality is too different. Googles need to be built by tech guys who ALL know they are in the advertising and media business.

Certainly Microsoft and Yahoo will both continue to do reasonably well, given the growth in online ads, search engine marketing and online media. But as for knocking down the big dog in this space - no.

I am hopeful that the combination will make the industry more competitive. Online ad pricing is starting to get expensive, and less effective. More competition will keep innovation up and costs down.

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Thursday, October 04, 2007

30% Increase in Online Ad Spend Expected from Local Search and Online Video

According to a forecast from ZenithOptimedia, marketers should expect to see a 30% increase in online ad spend in local search and video. This will help online advertising go over $33 billion next year. And by 2009 online ad spending will account for almost 10% of total ad spend worldwide.

While this is going on, they predict that newspaper ad spend will decline by 29%, with magazines and radio declining as well. Only TV and outdoor advertising will have small increases in the traditional marketing side.

This doesn't go near as far as what Steve Ballmer at Microsoft was quoted recently as saying. He stated that sometime in the next decade, all advertising will be digital. He's predicting that as much as 25% of Microsoft's revenue will come from advertising, and likely with ad-supported Microsoft products.

30% per year is a big number. That means, the spending will double every 2.1 years, which means maybe Microsoft isn't so crazy after all. We use online ads, in addition to helping people use it, and we can honestly say it is by far the lowest cost, most effective medium that our clients use. If you haven't tried it, you'd better, or you might be using a horse and buggy when everyone else is using a new fangled horseless carriage known as the automobile.

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Friday, May 11, 2007

Bill Gates Says Future of Advertising is Online

This week, Microsoft Chairman , Bill Gates stated that he will spend the remainder of his employment at Microsoft, focused on advertising and marketing services.

Speaking at Microsoft's annual Strategic Account Summit, Bill Gates said that his main focus before he left his full-time position would be on 'search, buyers and sellers'. While that will only be about a year since he is leaving in mid-2008, his comment, 'That will be my biggest thing', is fairly telling.

'We're saying newspapers will go online, and there will be massive innovation that comes out of that,' he said 'We're saying that TV, the biggest ad market in the world, will completely go online and have the kind of targeting interaction that you only get out on the Web today.'

According to BizReport, the shift to online, with its associated lower costs and enhanced user experience will, Gates said, contribute to the shift of advertising online over the next five years and beyond.

This is important announcement in the online marketing world. First, he is predicting Microsoft's future, and the future is online advertising, particularly search. Not a small change, considering their business has been primarily Windows and Office. And secondly, he is admitting that their future is to catch up to Google.

In my opinion, this is a watershed moment - and one that may define the future of the Internet. Microsoft has $50 billion cash in the bank to make the shift.

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