Intelligent Performance Marketing

Will No-Track Extensions Send Paid Search Advertisers Back to the Keyword Basics?

By: Julianne Bohl

There’s been a lot of chatter in recent weeks about Google Chrome’s new no-track option, an answer to rising consumer concern over online privacy. So what will the no-track option mean to me as a leisurely Internet user? What will it mean to me as a search advertiser? I’ll bet if I asked five different people how implementing no-track would affect their online experience I’d get five different answers.

We know that Google will not collect users’ browsing histories when the Opt-Out extension is selected, but users will continue to see ads. How is this so? Not all of Google’s ads are served based on user preference. When I started out in Search, my campaigns consisted of keyword-search paid ads and keyword contextually targeted display ads. That was pretty much the extent of it. But a lot has changed in five years!

Browser cookies – a small piece of information sent by a web server to store on a web browser – have allowed us to collect signals about users’ interests, enabling us to build more-robust profiles of who our customers are. This profile is no longer just defined by the search engine queries and the content of the sites visited. With this wealth of consumer insight, we can now serve an ad to a former customer, informing them when an upgrade for their previously bought product is released. Or we can serve an ad to a non-purchasing browser, offering a site or product coupon. Do consumers really dislike these ads? Personally, if I’m checking the weather, I’d rather see an ad for sales on flights to Florida (because I’ve been researching this, and yes, I want to know about this sale!) than an ad for gardening (this is irrelevant to me – a eucalyptus plant is about as far as I get in New York).

So if users start opting out, and search engines and ad networks are forced to move away from preference-based targeting and back to the basics of keyword targeting, will the problem be solved? Will end-consumers feel more secure searching online or will they be irritated by the less and less relevant ads they see? What about advertisers? Will online marketing become less insightful? Will advertisers pull back from spending online? Will content providers dependent on ad revenue be forced to stop producing this content?

It’s tough to say. But I think as an industry, we can agree that we face the tough challenge of rethinking how we approach this space.

The phenomenon of online marketing has always been its measurability. The compelling data and the insights an advertiser can glean from campaigns are truly above and beyond any other marketing channel, and to potentially lose this is such a shame. Wouldn’t InStyle’s print team love to find an efficient way to send me my issue with one set of ads (if only they knew I always skip the beauty section) and my sister her issue with a separate set of ads (she saves the beauty section)? Search advertising is at the risk of losing what it does best: Understand consumers and reach them in precise ways that are personally meaningful.

If we lose this as advertisers, current and future brand enthusiasts lose out too. It’s up to our industry to find a way to maintain this relevancy while also securing users’ privacy.

Julianne Bohl is the Director of Search Advertising for NetX.

Don’t Miss The Latest Headlines In The NetX Industry News Update!

Steve Jobs passes away while experts predict growth for this year’s holiday sales.  You can find these headlines and more in this week’s industry news update!

Apple Co-Founder Steve Jobs Passes Away
WashingtonPost.com
Steve Jobs, a co-founder of Apple Inc., has sadly passed away at the age of 56.  An original thinker who helped create the Macintosh also reinvented the portable music player with the iPod and reordered the cell phone market with the iPhone.  The introduction of the iPad also jump-started the tablet market, and now it dominates the field.

Holiday Sales to Rise 2.8% to $465 Billion
MediaPost.com
The National Retail Federation says it expects holiday spending to rise just 2.8% this year, to a total of $465.6 billion.  While that gain is far less than the 5.2% gain retailers saw last year, it is still above the 2.6% average of the last 10 years.  Retailers have posted sales gains for the last 14 months but ongoing concerns about the economy have them worried.

Google Analytics Adds Real-Time Traffic Data
Mashable.com
Google for the first time is providing a window into real-time web traffic with Google Analytics Real-Time.  Real-Time reports are available in the new version of Google Analytics, and administrators with Analytics accounts will get Real-Time reports.  For users trying to gauge how a campaign or post is performing, Real-Time will track the immediate impact to site traffic.

Mobile Ad Spend to Hit $1 Billion
SearchEngineWatch.com
According to eMarketer, mobile ad spending could reach $1.23 billion for U.S. advertisers by the end of the year, up 66% from last year’s $743 million figure.  They also predict that this figure will continue to see escalating growth, reaching $4.4 billion by 2015.

Google Launches Trusted Stores Program
InformationWeek.com
To ally doubts about the legitimacy of the e-commerce sites, Google has announced a new program to highlight exemplary online merchants.  Google Trusted Stores aspires to help shoppers recognize online stores that offer compelling shopping experiences.  Google has already begun admitting merchants into the program, which will require participating sites to share shipping and customer service data with Google.

Flash-sale E-mails Spark More Purchases When Sent Late in the Afternoon
InternetRetailer.com
Flash-sale e-mails sent after 3 P.M. generate more transactions and more revenue than e-mails sent out earlier in the day, according to an Experian CheetahMail analysis.  The data reveals that messages sent after 3 P.M. have an open rate 90% greater than e-mails sent at mid-day.  Late-day messages stand out more in consumers’ inboxes because fewer e-retailers send messages late in the day.

Read All The Latest Headlines In The Netx Industry News Update!

Didn’t have a chance to read this week’s headlines? Well you can find all the latest news in the Netx industry news update!

California’s Governor Brown Expected to Sign Affiliate Nexus Tax Repeal
PerformanceMarketingAssociation.com
This morning the Performance Marketing Association delivered a letter to Governor Brown, asking for his signature on AB 155, which would repeal the Affiliate Nexus Tax for one year.  The Governor is expected to sign AB 155 into law and since this is an ‘urgency stature,’ it will go into immediate effect once it is signed.

Michigan Bill Pushes for Affiliate Nexus Tax
DETNews.com
Michigan lawmakers are renewing a push to require more business selling items over the internet to collect the state’s 6% sales tax.  Proponents claim that online retailers have an unfair price advantage and it hurts Michigan businesses that have storefronts and collect sales taxes.

Mobile Landing Page Quality Now Affects AdWords Quality Score on Media Ads
SearchEngineWatch.com
Google has just announced that within weeks, mobile optimization will be a factor in ad quality for AdWords campaigns driving mobile search traffic.  Since advertisers with a higher quality score get a lower cost per click and better ad placement, it is strongly encouraged to optimize mobile landing pages.  Some optimization suggestions include keeping layouts simple, prioritizing content, making it easy to convert and designing the page for thumbs, not mice.

Display Spending Rose 13% in First Half of 2011
ClickZ.com
A new report from Kantar Media has found that display ad spending rose nearly 13% in the first half of 2011.  The report also found that search ad spending rose 8.6% while internet media spending has increased 10.4%.

Behavioral Targeting Comes to TV Ads
MediaPost.com
Companies targeting ads to consumers on TVs based on location, channel surfing activity and more might seem like a futuristic platform to some, but in reality companies offer the service today.  MStar and Channel Island have collaborated to advance TV advertising and applications in set-top boxes by creating new software that supports profiling and geographic targeting for motion video ads.  Network operators will receive audience measurements and response metrics that include behavioral information and, in the future, what consumers watch on TV will influence the ads they see online.

Twitter Influences Consumers’ Purchases
InternetRetailer.com
It turns out that Twitter may be more influential than Facebook in helping drive consumers’ shopping decisions.  A recent survey of over 2,000 online shoppers found that 35% of consumers said Twitter was influential or extremely influential in their decision to buy a product.  That compares with 24% who said Facebook helped guide a purchase.

Email Deliverability Rates Stagnate at 81%
DMNews.com
Only 81% of emails sent during the first half of 2011 reached consumers’ inboxes, according to a study released by the email deliverability firm Return Path.  In addition, the report found that 7% of emails worldwide were classified as spam while 12% went missing.

California’s Governor Brown Expected to Sign Affiliate Nexus Tax Repeal

PerformanceMarketingAssociation.com

This morning the Performance Marketing Association delivered a letter to Governor Brown, asking for his signature on AB 155, which would repeal the Affiliate Nexus Tax for one year. The Governor is expected to sign AB 155 into law and since this is an ‘urgency stature,’ it will go into immediate effect once it is signed.

 

Michigan Bill Pushes for Affiliate Nexus Tax

DETNews.com

Michigan lawmakers are renewing a push to require more business selling items over the internet to collect the state’s 6% sales tax. Proponents claim that online retailers have an unfair price advantage and it hurts Michigan businesses that have storefronts and collect sales taxes.

 

Mobile Landing Page Quality Now Affects AdWords Quality Score on Media Ads

SearchEngineWatch.com

Google has just announced that within weeks, mobile optimization will be a factor in ad quality for AdWords campaigns driving mobile search traffic. Since advertisers with a higher quality score get a lower cost per click and better ad placement, it is strongly encouraged to optimize mobile landing pages. Some optimization suggestions include keeping layouts simple, prioritizing content, making it easy to convert and designing the page for thumbs, not mice.

 

Display Spending Rose 13% in First Half of 2011

ClickZ.com

A new report from Kantar Media has found that display ad spending rose nearly 13% in the first half of 2011. The report also found that search ad spending rose 8.6% while internet media spending has increased 10.4%.

 

Behavioral Targeting Comes to TV Ads

MediaPost.com

Companies targeting ads to consumers on TVs based on location, channel surfing activity and more might seem like a futuristic platform to some, but in reality companies offer the service today. MStar and Channel Island have collaborated to advance TV advertising and applications in set-top boxes by creating new software that supports profiling and geographic targeting for motion video ads. Network operators will receive audience measurements and response metrics that include behavioral information and, in the future, what consumers watch on TV will influence the ads they see online.

 

Twitter Influences Consumers’ Purchases

InternetRetailer.com

It turns out that Twitter may be more influential than Facebook in helping drive consumers’ shopping decisions. A recent survey of over 2,000 online shoppers found that 35% of consumers said Twitter was influential or extremely influential in their decision to buy a product. That compares with 24% who said Facebook helped guide a purchase.

 

Email Deliverability Rates Stagnate at 81%

DMNews.com

Only 81% of emails sent during the first half of 2011 reached consumers’ inboxes, according to a study released by the email deliverability firm Return Path. In addition, the report found that 7% of emails worldwide were classified as spam while 12% went missing.