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Archive for the ‘Pay Per Click’

Google profits increased by PPC sales

April 25, 2015 By: Dr Search Principal Consultant at the Search Clinic Category: Dr Search, Google, Pay Per Click, Pay Per Click Advertising, Pay Per Click Marketing, Search Clinic, Search Engine Marketing, Search Engine Optimisation, Search Engine Results, Uncategorized

Google has reported a 4% increase in profits to £2.38 billion, as strong PPC advertising sales helped boost the firm’s accounts.

Google reported a 4% increase in profits to £2.38 billion, as strong advertising salesGoogle said advertising sales for the first three months of 2015 were £10 billion, an 11% increase from the same period a year earlier.

Total revenue also increased by 12% to £11.53 billion, but like other US firms, the company was hurt by the strong dollar.

Shares in the firm rose more than 3% in trading after markets had closed.

There had been fears on Wall Street that profits would be weaker due to investment in new businesses and weaker advertising revenue as more people access Google via mobile devices, where advertising rates are lower.

But the fears turned out to be unfounded – a fall in the average price of an advert was offset by an increase in the number of adverts.

In a statement accompanying the results, chief financial officer Patrick Pichette said the company continued “to see great momentum in our mobile advertising business and opportunities with brand advertisers”.

However, Google did suffer from the stronger dollar. Taking out the impact of currency movements, Mr Pichette said revenue grew by 17% in the quarter compared with a year earlier.

The results also showed the firm continued hire new staff at a high rate, with employee numbers up 9,000 over the past year.

Facebook reports slow growth and higher costs

April 23, 2015 By: Dr Search Principal Consultant at the Search Clinic Category: Facebook, internet, Pay Per Click, Search Clinic, Social Media, Social Networking, Technology Companies

Facebook shares fell after the company reported slower revenue growth, while research and development costs ate into profits.

Facebook reports slow growth and higher costsThe social networking company said profit in the first quarter of 2015 was £341 million, down 20% on a year earlier.

While revenue rose 42% to £2.33 billion- that was slightly below analysts’ forecasts. A bright spot was the rise in monthly active users, up 13% from a year earlier to 1.44 billion.

Notably, for those investors concerned about the firm’s efforts to appeal to younger users who access Facebook on their smartphones, monthly mobile users increased by 24% to 1.25 billion, a majority of the site’s users.

Facebook has been particularly adept at channelling that growing mobile user base into advertising dollars.

The company said that during the quarter, revenue from mobile ad sales made up nearly three quarters of total ad sales.

“This was a strong start to the year,” said founder and chief executive Mark Zuckerberg in a statement.

Investors have been worried about slowing revenue growth, as well as increasing costs at the company. Facebook has been spending more on research and development as it moves beyond its original social networking operation.

Spending on research and development jumped to £377 million from £120 million a year earlier.

The company has warned that those costs are set to increase, as it looks to expand some of its acquisitions including photo-sharing site Instagram, messaging service WhatsApp, and virtual reality firm Oculus Rift.

The trends are all going in the right direction. The cost rise is one thing that can derail this story. The question is, can they keep costs under control and what will be the new revenue streams around video, Instagram and virtual reality around Oculus?

Botnet system steals millions of dollars from advertisers

March 26, 2013 By: Dr Search Principal Consultant at the Search Clinic Category: AdWords, Computers, Cyber Security, data security, Ecommerce, Hackers, Pay Per Click, Pay Per Click Advertising, Search Clinic, Search Engine Marketing, Technology Companies, Uncategorized

A network of thousands of computers which stole millions of dollars from advertisers by generating fake advert viewings has been discovered.Botnet system steals millions of dollars from advertisersBritish web analytics firm Spider.io claims the “Chameleon” botnet is made up of 120,000 home PCs and costs advertisers £3.9 million per month.

Spider.io said that Chameleon simulated clicks on adverts on over 200 sites.

The firm said the botnet was responsible for up to nine billion false ad views every month.

Websites that show display ad receive money when an ad is viewed, in what is called cost-per-impression advertising. It works by money being paid when an ad impression is viewed, and advertisers selling a product or a service pay the website owner a fixed amount each time their ad is viewed.

The ads are typically placed by advertising networks that act as middlemen – the network places the ad on the publisher’s site and the advertiser pays the network and the publisher.

Advertisers use clicks and mouse movements over ads as leading indicators of visitor intent – meaning that the users being shown ads are more likely to buy a product or sign up to a new service.

So if a malicious programme generates clicks or mouse traces, then advertisers will be encouraged to buy more ad space.

Spider.io said that about 95% of the hijacked machines were in the US.

“This particular botnet is being used to emulate human users surfing the web, mimicking normal browsing sessions and normal ad engagement,” said the firm’s chief executive Douglas de Jager.

“It is difficult to imagine why one would run this type of botnet across a cluster of 202 sites other than to commit display advertising fraud.

“Unfortunately, we can’t be sure precisely which of the financially motivated parties is behind this. It could perhaps even be a single person within one of the companies, unbeknownst to others at this company.”

He added that the company was able to spot the botnet thanks to a very specific behaviour of the infected computers.

“The bots subject host machines to heavy load, and the bots appear to crash and restart regularly,” he said.

“When a bot crashes the concurrent sessions end abruptly; upon restart the bot requests a new set of cookies. These crashes and idiosyncratic site-traversal patterns are just two of the many bot features that provide for a distinctive bot signature.”

“Advertising networks – not the advertisers themselves – need to work harder at identifying the difference between a genuine user clicking on an ad, and a compromise computer that has been turned into a click-fraud bot.”

 

eBay thirdquarter sales and profits increase

October 22, 2012 By: Dr Search Principal Consultant at the Search Clinic Category: Apps, Customer Service, eBay, Ecommerce, internet, Mobile Marketing, mobile phones, Pay Per Click, Pay Per Click Advertising, smart phones, Tablets, Technology Companies, Uncategorized

The auction site eBay has reported a rise in third quarter sales and profits- as more consumers used the website.eBay thirdquarter sales and profits increaseNet profit for the three months to the end of September rose 14% from a year earlier, to £445 million ($718 million), eBay said.  Net revenues rose 15% to £2.125 billion.

The company has also been looking to take advantage of the increasing number of people who use mobile smartphones to shop and pay for things.

“We had a great third quarter across our company, with Marketplaces and PayPal accelerating customer growth,” chief executive John Donahoe said in a statement.

“Mobile continues to be a game changer for us, and we continue to be a clear leader in mobile commerce and payments.”

The group forecast sales of between £2.46 billion and £2.5 billion in the fourth quarter.

Whilst the results were impressive, EBay shares fell nearly 1% in extended trading in New York after its results came out as analyists had been hoping for even better results.

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Yahoo hires ex Googler on $58m pay package

October 19, 2012 By: Dr Search Principal Consultant at the Search Clinic Category: Customer Service, Email, Pay Per Click, Pay Per Click Advertising, Pay Per Click Marketing, Search Clinic, Search Engine Marketing, Search Engine Results, search engines, Technology Companies, Uncategorized, Yahoo

Yahoo has appointed a Google executive as its next chief operating officer- paying him a hefty pay package worth about $58 million  (£36million) over four years.Yahoo hires ex Googler on $58m pay packageHenrique de Castro had worked for Yahoo’s new chief executive, Marissa Mayer, at Google. He will oversee sales and operations Yahoo said.

Mr de Castro will get a basic annual salary of $600,000 as well as $36 million in stock options.

Yahoo has been trying to rebuild itself after falling behind its rivals.

Yahoo was one of the pioneers in internet search and email and continues to remain one of the biggest names in the industry.

It has however been losing ground as it has not been able to keep up with Google in the search engine results business.

“This is a pivotal point in Yahoo’s history, and I believe strongly in the opportunity ahead,” Mr de Castro said.

Yahoo’s share of US online advertising revenues fell to 9.5% last year, down from 15.7% in 2009.

Mr de Castro will be eligible for an annual bonus of up to 90% of his $600,000 salary, according to Yahoo’s filing with the US Securities and Exchange Commission.

He will also receive a cash bonus of $1 million within one week of joining Yahoo and will be given restricted stock units and performance-based stock options totalling $36 million over four years.

That compares to Ms Mayer, whose remuneration package could top a whopping $70 milion. Ms Mayer’s basic salary is $1 million a year, but shares and share options, along with other potential rewards, could make it far more lucrative.

She was appointed in July and is the firm’s third chief executive in the space of a year.

Facebook shares drop to new low

July 31, 2012 By: Dr Search Principal Consultant at the Search Clinic Category: Facebook, internet, Mobile Marketing, Pay Per Click, Pay Per Click Advertising, Pay Per Click Marketing, smart phones, Social Media, Technology Companies, Uncategorized

Shares in Facebook have fallen to a new low, as investors react to the social network’s first set of results since its flotation.Facebook shares drop to new lowLate Thursday, in its first report as a public company, Facebook said it lost £100 million ($157 million) from April to June.

Its shares plunged more than 16% in early trading before recovering slightly to end the day down almost 12% at $23.71.

Facebook shares were priced at $38 when it listed on the Nasdaq in May.

Facebook’s results on Thursday showed that revenue in the second quarter of the year had grown 32% to £752 million ($1.18 billion), just beating forecasts.

The number of monthly active users (MAUs) rose 29% from the same period last year to 955 million, but some analysts question the reliability of this data given the number of fake profiles on the social network.

The number of people who logged in daily to Facebook’s site from their mobile devices surged 67% year-on-year to 543 million.

But the company has yet to resolve how it generates profits as users move from the computer desktop version to accessing the site via mobile phone.

Key questions remain-  the future of Facebook mobile monetisation and the future of Facebook user engagement.

Yahoo to axe non core services to improve profits

May 15, 2012 By: Dr Search Principal Consultant at the Search Clinic Category: AdWords, bing, Customer Service, Ecommerce, internet, Microsoft, Pay Per Click, Pay Per Click Marketing, Search Engine Marketing, Search Engine Optimisation, Search Engine Results, search engines, Technology Companies, Uncategorized

Yahoo has confirmed plans to shut down dozens of services which are not seen as core to the firm.Yahoo to axe non core services to improve profitsAs a result they said that it would be “shutting down or transitioning roughly 50 properties that don’t contribute meaningfully to engagement of revenue”.

The CEO Mr Thompson did not identify which units would be abandoned, but noted that news, finance, sports, entertainment and mail were safe.

“Each of our products and services may individually generate more engagement than most start-ups or even mid-sized companies in certain markets, but that does not mean that we should continue to do everything we currently do,” he was quoted as saying in a transcript of the conference call by Seeking Alpha.

The chief executive also noted that its search alliance with Microsoft was “not yet delivering” what had been expected.

The two firms agreed to team up in 2009. The idea was that Microsoft would provide Yahoo with the search results produced by its Bing service, which Yahoo would tailor to its audience. In addition Yahoo’s salesforce would target “premium” advertisers on behalf of both firms.

Mr Thompson said the UK and France were currently being moved to Microsoft’s search algorithm, and that other parts of the EU and Asia would follow.

However, he added that Yahoo was “working hard with Microsoft” to address the fact that the software firm’s AdCenter technology was still not delivering the sort of revenue it had hoped for.

For the time being Yahoo is protected against the shortfall by a “revenue per search” guarantee signed by Microsoft that is due to expire next March.

Mr Thompson was also quizzed for more detail about his promise to make better use of the company’s “vast data”.

He explained that the firm would use cookies to personalise its news content.

He added that the data would also be used to help advertisers understand how visitors used the site and to request “almost real-time” analytics data.

This is the latest in a series of turnaround plans promised for the web portal.

The key will be in getting the search and banner advert revenues higher.

Google profits from illegal ads

January 30, 2012 By: Dr Search Principal Consultant at the Search Clinic Category: AdWords, Google, Online Marketing, Pay Per Click, Search Engine Marketing, search engines, Technology Companies, Twitter

Google is profiting from ads for illegal products generated by its pay per click advertising system.Google profits from illegal adsThe ads include unofficial London 2012 Olympics ticket resellers, as well as cannabis and fake ID card sellers.

Google has since taken down links to illegal Olympic ticket resellers following requests from the police.

But the search engine confirms that the company keeps any money it might make from companies advertising illegal services before such adverts are removed.

Selling tickets on the open market without permission from the Olympic authorities is a criminal offence in the UK under the London Olympic and Paralympic Games Act 2006.

The maximum penalty fine for reselling Olympic tickets without authorisation from the Olympic authorities was raised last year from £5,000 to £20,000.

Despite this, Google has placed adverts for unofficial ticket resellers which are breaking the law by selling London 2012 tickets to customers in the UK.

But research found other sponsored Google adverts – for online cannabis sellers, fake ID cards, and fake UK passports.

Google’s Pay Per Click AdWords advertising system is partly automated and this helps make the initial selection of the advertisements which appear at the top of its search results.

Google’s AdWords does filter key words that can help sift out adverts which might be offering unlawful services.

If a filter flags an advert, then Google will run a manual assessment – a human takes a look – and if it breaks Google’s policy, the advert will be taken down.

In a statement, Google said: “We have a set of policies covering which ads can and cannot show on Google. These policies and guidelines are enforced by both automated systems and human beings.

“When we are informed of ads which break our policies, we investigate and remove them if appropriate. Our aim is to create a simple and efficient way for legitimate businesses to promote and sell their goods and services whilst protecting them and consumers from illicit activity.”

However, dubious online retailers are still finding their way to the top of the advert results and can do so by paying a higher cost per click than other advertisers.

Google says the quality of ads also plays a role in the ranking advertisers achieve, as well as the price the advertiser is willing to pay.

Google’s sponsored links have proved costly in the past and, in August, Google agreed to forfeit £324 million ($500 million) for publishing online adverts from Canadian pharmacies selling illegal drugs to US customers.

Google sales growth worse than expected

January 24, 2012 By: Dr Search Principal Consultant at the Search Clinic Category: Ecommerce, Google, Pay Per Click, search engines, Technology Companies, Uncategorized

Google reported a 27% increase in revenues for the last three months of 2011, but even that was not good enough to meet Wall Street estimates, sending the shares tumbling.Google sales growth worse than expectedGoogle shares fell 10% in after hours trading to £370 ($575) .

It reported 3 month revenues of £6.8 billion ($10.6billion) and its net profit rose 6.4% to £1.74 billion ($2.7 billion).

“Google had a really strong quarter ending a great year,” said chief executive Larry Page.

“I am super excited about the growth of Android, Gmail, and Google+, which now has 90 million users globally – well over double what I announced just three months ago.”

But analysts were less impressed with Google’s figures.

Expectations were very high and Google have missed thier estimates.

The number of clicks on Google’s AdWords Pay Per Click networks rose significantly in the fourth quarter, but the amount that Google was able to charge advertisers for each click fell 8%.

For the full year, Google reported a 29% rise in revenue to £24.45 billion ($37.9 billion), with net profits up 14% to £6.25 billion ($9.7 billion).

Yahoo co-founder Jerry Yang resigns from its board

January 19, 2012 By: Dr Search Principal Consultant at the Search Clinic Category: Broadband, Customer Service, Email, Pay Per Click, search engines, Social Media, Technology Companies, Uncategorized, Yahoo

Jerry Yang, the co-founder of Yahoo!, has resigned from its board of directors with immediate effect.Yahoo co-founder Jerry Yang resigns from its boardJerry Yang founded the online company in 1995 with David Filo and was its chief executive from June 2007 until January 2009.

His resignation comes two weeks after the company hired former PayPal executive Scott Thomson to be its new chief executive.

Mr Yang annoyed some shareholders by turning down a £31 billion ($47.5 billion) takeover offer from Microsoft in 2008.

Since then the value has plummeted and the company’s current market value is only about £13 billion.

Mr Yang has also resigned from the boards of Yahoo Japan and Alibaba Group and said in a statement: “The time has come for me to pursue other interests outside of Yahoo!”.

In addition to leaving the boards, Mr Yang is also giving up his title of “Chief Yahoo”. He also expressed support for the company’s current management.

“I am enthusiastic about the appointment of Scott Thompson as Chief Executive Officer and his ability, along with the entire Yahoo! leadership team, to guide Yahoo! into an exciting and successful future,” he said.

Some observers had seen Jerry Yang as an impediment to the sale or restructuring of the business as it provides a more objective and unemotional approach to the variuos strategic alternatives which are being considered as the company attempts to reinvent itself.