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Google’s Incentive and the Open Source Movement in Online Marketing

The blogosphere has been all abuzz with the latest news from Jimmy Wales, the founder of Wikipedia, in that he is attempting to construct a human generated search platform to rival Google.

Search is part of the fundamental infrastructure of the Internet. And, it is currently broken.

Why is it broken? It is broken for the same reason that proprietary software is always broken: lack of freedom, lack of community, lack of accountability, lack of transparency.

Here, we will change all that.

There are already dozens of thoughts and opinions on whether or not this will work or if it is even original or feasible (see the holy tech trinity of Techmeme, TechCrunch and Technorati if you haven’t been following).

However, one of the questions very few are asking is whether or not Google is doing a decent job at providing access to all of the world’s information, which was one of the company’s original mission statements.

Does Google have enough incentive to provide a decent search platform? I’d argue no, because Google is at its heart an advertising company.

Dave Winer sums it up the best with:

Today Google’s profits come from ads, and that business gives them a reason to keep search weak. They want you to do a lot of searching to find what you’re looking for — and the stuff they find for you for free is competing with the stuff they make money on. So Google actually has a disincentive to make search better.

Amen, Dave.

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Whether or not Jimmy’s project succeeds or fails is important to watch, but realizing that Google’s hegemonic grip on providing quick access to our information is beginning to loosen is also important to ponder.

It means everything to online marketing.

Whether you like them or not, CPA networks reflect the democratization of the affiliate network structure which held the affiliate marketing industry back in terms of reach, technology platforms and stature within the larger scope of online marketing. In a way, CPA networks show the market’s ability to prefer democracy over hierarchical and non-transparent imposed structures.

The next 50 years will see the exponential demand for “open source” and “free” technological equipment and platforms. This will extend WELL beyond just software such as browsers (Firefox) and begin to make us question why we allow companies to set boundaries on our own entertainment and consumption habits (think of how restrictive your iPod really is on your music).

Think of fonts. If you had told any professional newspaper or magazine publisher that consumers and individuals (from 3rd graders on up to grandmothers) would know the difference between the Helvetica and Verdana fonts in 2000, they would have thought you were crazy. We don’t realize the impact that such technologies as MS Word have had on our culture in terms of opening up the publishing and content creation business to non-specialists, but now it is taken as cultural competency that kids entering college know the difference between Courier New and Times New Roman since you can squeeze an extra page and a half out of a 10 page paper if you are using Courier New rather than Times New Roman. Profs and freshmen know this, and that’s just odd considering the course of human history.

If you don’t watch Ze Frank’s The Show, you should. At least watch this episode (on this very topic) for me.

So, what does that have to do with Google and online marketing? Everything.

Consumers will begin to examine why they can’t listen to their iTunes music on more than 5 computers if they bought their music fair and square. Consumers will begin to wonder why Vista restricts the application of certain handy software programs. Consumers will begin to wonder why Google doesn’t provide the best links on the front page.

And this will happen soon.

So, don’t get stuck in the present or the 2005 as we enter the new year. Realize that it’s not a matter of consumers becoming more educated about technologies, but they are becoming more accustomed to using these technologies and realizing what things like Google, search, affiliate links and top down technologies and services can and cannot do.

Eventually this will be a mute debate, but as a species we have constantly dealt with attempts to co-opt and control the learning process, going back to the roots of literacy, trade and sociological functions such as religion. It is inevitable that everything will be open source and non-proprietary, it’s just going to take a few more thousand years to get there.

Knowledge is power and Google’s power seems to be slipping as consumers realize that Google’s main product is not knowledge, but advertising.

[As an effort to show my cards and provide disclosure, I’m a hippie libertarian (deep down I think Shawn is too) teacher/student and online marketer who distrusts efforts to make knowledge (or access to knowledge) proprietary at heart and this post was made on the Drivel blogging platform (Gnome blogging platform) inside the Linux-based open source Ubuntu OS with links provided by the Epiphany web browser (a Gnome based browser similar to Firefox but more community minded). I listen to my music (non-drm) on a Rockbox hacked iPod Mini while reading my feeds on Liferea and chatting on Gaim.]

[EDIT: Here’s the link to the Search Wikia page from Jimmy Wales.]

Newsweek Says 2007 Is the “Year of the Widget”

200612082044-1.jpgFirst, Time Magazine anoints web2.0 users as the “Person of the Year” (see below for conversations on whether or not that includes those involved in the affiliate marketing community).

Now, Newsweek is describing 2007 as the “Year of the Widget.”

“It’s better than advertising,” says Om Malik. “It’s in front of your eyes constantly; that brand becomes your brand.” Your widgets certainly don’t need to come branded, however. Indeed, that’s the whole point: to help the World Wide Web become your Web”

Nice job, Om.  It is better than advertising.  As Jeff D. says in the comments below, our experience online and offline with brands is quickly becoming a part of our own identity and in the future we’ll be debating in an explicit manner on what types of brands to associate with on a day to day basis.

As Bob Dylan sings, “Things have changed.”

Is big media reading the blogs such as CPN or Steve Rubel and making these claims in order to appear as if they are not absolutely out of touch, or have they wised up to the future? Based on media buys and advertising dollars being spent, I’d say that it is the former.

Matt Cutts on Pageviews and Rubel Says Google Digs Digg

The Holidays are in full swing here, but I wanted to give you two quality posts to check out if you have any down time this weekend…

Google’s Matt Cutts discusses page view data and defends Yahoo…

I want to come to Yahoo’s defense about something. A recent spate of reports says that Yahoo has been surpassed by various companies in terms of page views. Why is that relatively bogus? Because of Yahoo’s switch to AJAX for its mail. According to Alexa data, 49% of Yahoo visitors go to mail.yahoo.com. Everyone knows that I take Alexa data with a grain of salt, and that 49% fraction may be high, but Yahoo definitely gets a lot of traffic from Yahoo Mail. Yahoo’s new mail system uses AJAX. And how do the metrics companies handle AJAX? Typically, not well.

And Edelman’s Steve Rubel points out that Google is indexing social sites such as Digg in its blog search service.  What does that mean for SEO??  I’d argue it means a great deal

Despite the gripes about Google Blog Search and its inability to filter out spam, the site has been improving steadily. It now indexes lots of non-news content as long as it is published in a feed.

Don’t these people take a break from writing quality stuff on the Holiday weekends??  More after the eggnog kicks in…

Happy Holidays and Thank You’s

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I hope everyone has a fun, happy and warm holiday where ever you are and whatever you are doing.

Marketing is a distinct human endeavor in which we attempt to persuade, either directly or indirectly, others of the valuable nature of some service, product, program or idea that they are not yet aware of or using.  Let’s all promise each other to do marketing right (whatever that means) in the new year.

I’d also like to thank you for making CPN such a success over the last few months. Since launching at the beginning of November we all (you and me) have managed to create a pretty valuable and interesting niche community discussing some of the most important questions we could ponder in the industry.

2007 promises to provide many more additional questions, so I hope you’ll continue to come here for discussion.

I also wanted to give a few shout outs to people who have explicitly made CPN possible over the last few months with their money, time, thoughts, encouragement and links:

There are a good deal more of you out there who have participated in the discussion, given suggestions and sent a long helpful tips or ideas, but I wanted to thank those who have directly affected this site and made it such an interesting place in only two months.

2007 will be a hectic year here because of CostPerJobs, a couple of great new sponsors coming in January and some other exciting new things going on behind the scenes here and there.

There will be light additions here until next Tuesday due to the Holidays. Check this out in the meantime and leave your hopes.

Thank you again for your help and your conversations! Here’s to many more-

Sam

All Widgets Considered

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Widgets will be hot in online marketing in 2007.

Why do I keep insisting that?

The metrics are right, the market is in demand, the new OS systems rolling out (Vista, Mac’s new OS X, and even Linux distro’s like my beloved Ubuntu) are encouraging widget use, and consumer adoption has begun now that the early adopter market has been saturated.

Watch for CPA networks and affiliate networks to increasingly make use of widgets over the next six months with the ability to share new offers, reporting, coupon codes, payout increases/decreases made available on the publisher’s desktop.

It will be an exciting time.

Here are two good sites I recommend checking out to help you contemplate the widget:

During the Holiday downtime, play with a few of the widgets and give some thought as to how they can improve your program whether you’re a marketer, merchant, network or a publisher.

Cost Per Love

Huh?

What’s that you say?

You enjoy the conversations, content and growing community and you’d love to help contribute to making Cost Per News a reality every day but don’t want to pay the high monthly fee for advertising here?

I hear ya.

That’s why I’ve launched www.costperlove.com. There’s a link in the sidebar over on your right in case you want to visit later. You can participate as much or as little as you want.

  • Throw down $5 to $10 bucks and you get a smiley linked to your program or site (or whatever custom message you’d like) on the bottom of every post for 24 hours after your donation.
  • Throw down $20 and you get a heart linked to your program or site (or whatever custom message you’d like to pop up) on the bottom of every post for a week after your donation.
  • Throw down something like $50 or more and we’ll work out something special for you (no, not like that).

The icons and links also show up on the feeds for the subscribers as well.
Everyone who shows some love will be included on a weekly “Thanks for the Love” post with links/tags to your program, blog, or favorite recipe site.

Have fun with it and let me know what you think.

Here’s your examples…

Hybrid CPC Models Will Emerge in 2007

liger.jpgThe already-happening yet next evolution of online marketing will be based on a hybrid CPA metric that backs out to a mutually acceptable CPC rate for both publisher and advertiser.

This is beginning to happen on the social platforms and will only escalate in 2007 as CPC and search continue to move farther apart from one another in performance numbers.

Metrics will be the talk of 2007.  Google, Yahoo, Omniture, Mercent, Doubleclick, ValueClick and Network Solutions (among others) are going to force a re-examination of the traditional velvet ropes separating CPA, CPC and even CPM.

(That’s a “liger” in the picture, by the way…hybrid…get it?)

Major Overhauls

I’ve spent a good deal of time this week making some serious back end and infrastructure improvements on the site. You won’t notice most of the changes, but the site will load much quicker and some of the flexibile width image problems people were having in IE7 (which they deserve for using IE7) have been fixed.

What you may notice is a shifting around of some of the content on the sidebars. If you have any suggestions or ideas of things you’d like to see on the site to make it a better place, don’t hesitate to leave them in the comments or send me an email (click on the little mail icon to your left). They can exist as WordPress plugins or be something that you just thought up… I’m pretty handy with PHP, MySQL, AJAX and HTML so I should be able to make them a reality.

Oh, and there’s a new PayPal tip jar link. I hope that’s not too awful. A few people have suggested me doing this so that they can give something back, and I appreciate their thoughts, so there you go. I’ll go the NPR route and say if you enjoy the content, please consider throwing a dollar or three in there.

Thanks for visiting and participating in the conversation!

Sam

Can YouTube Work With Affiliate Marketing?

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Jeff Doak and Jeff Molander have raised interesting questions of branding and affiliate marketing’s place in defining brand channels in the comments of the post below on Twitter.

If what I’m saying about controlling your brand is correct, then the best bet for all media companies is to have their own fully branded distribution channel but also make sure they have a structure in place to reward other outlets for pushing their content. If a reward structure is in place but you only get rewarded under certain conditions (pre-roll a 10 second spot, link the content back to the channel, etc), then you’ve created a nearly perfect situation. Your advertisers now get their products seen not only on your main channel but across a huge network of niche sites who are all incentivized to push your product as well. That’s affiliate marketing again hitting its sweet spot.

Specifically how much control do brands, whether large national brands advertising on Comedy Central or brands using a channel such as affiliate marketing, have over their own image? How have brands using affiliate marketing dealt with the YouTube question?

Can the popular video portal YouTube work with brands within the confines of what is traditionally considered affiliate marketing?

Can Twitter Work With Affiliate Marketing?

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Based on the uber-excellent conversation going on in this thread below, a few of us, at the behest of Brian Littleton’s helpful suggestion, have decided to do a series of posts based on web2.0 program adoption in affiliate marketing.

I’m sure most of you wouldn’t want to spill the beans on how you are using these emerging platforms as this sort of implementation is still “valuable” knowledge, but maybe we can lay out some ideas without giving away too much of the secret sauce?

I’ll do as many of these posts as you all think is necessary depending on the platform. Of course we’ll ask about MySpace, YouTube, Facebook and the more well knowns, but I wanted to start this with a service called Twitter which has been the latest rage amongst the A Listers.

Twitter was born as an interesting side project within the offices of Odeo in March of 2006. We are a part of Obvious Corporation in the beautiful South Park neighborhood of San Francisco, California.

Twitter is a relatively new service which allows you to make a quick post with your current thoughts, etc. It has been used by many (including myself) as a way of quickly social networking as you can send messages to Twitter via IM, txt messages from your cell or on the web.

The benefit is that if you are trying to reach a group of people, or even just one person, you can post up a message that will be received on the other person’s own time. I’ve even begun to schedule phone calls and conference calls with Twitter. Users can personalize the look and feel of their pages to suit their own personalities as well.

Here is my Twitter page

So, can this type of platform be used for affiliate marketing?

I’d argue that it could, but it would require a serious conversation based relationship with your users/readers/consumers/customers. That would require a re-thinking by many of the merchant programs already in the affiliate space.