Tag Archives: ppc

Volume Forecasts on Google Insights for Search

Google appears to have added a forecast function to Insights for Search, allowing predictions of search volumes up to 12 months ahead. See the query here for “bonds”.

There is already some guidance in the Google help pages as to the background calculations involved:

Insights for Search examines the past values for the terms you’ve entered. Based on those values, it extrapolates the future values, creating a forecast of search trends for those terms.

Obviously this is a useful additional function, however as the prediction model doesn’t take into account the context of the search term, or account for any business cycles that may be driving a specific market, these numbers may prove to be misleading at best.

There could be some interesting applications of this, certainly in terms of understanding Google’s view on the direction of either particular brands or keyword markets. Beyond that it will be interesting to track over the next few months the accuracy of any predictions made.

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Google and Trademarks

Having run into some legal problems recently with clients regarding advertising against competitor trademarks on Google, I wanted to put together a post on this issue, and the current state of play. It seems pretty clear to me that globally speaking, no case has really got to the bottom of the particular problems associated with advertising against a trademarked keyword, or using a trademark in ad text on a search engine.

In terms of context, AdWords is Google’s flagship advertising product and main source of revenue, offering pay per click advertising, and site targeted advertising for both text and banner ads. Advertisers create ads and choose keywords, which are words or phrases related to their business so that when people search on Google using one of those keywords, the advertiser’s ad may appear next to the search results.

A company can choose a trademark protected term as keyword. For example, if you enter “nike” in the Google search box, you will get listings from advertisers who paid for placement with this keyword. Google puts those listings off to the right side of the screen, clearly marked as ads.

Google started allowing advertisers to bid on a wide variety of search terms in 2004 in the US and Canada, including the trademarks of their competitors and in May 2008 expanded this policy to the UK and Ireland.

Certain trademark owners have become concerned about their brand awareness and claimed that this behaviour violates their trademarks. Google came consequently under fire both in the media and from a legal perspective for allowing advertisers to bid on trademarked keywords.

In its 2008 Annual Report, Google commented on the lawsuits as follows:

Companies have filed trademark infringement and related claims against us over the display of ads in response to user queries that include trademark terms. The outcomes of these lawsuits have differed from jurisdiction to jurisdiction. We currently have three cases pending at the European Court of Justice, which will address questions regarding whether advertisers and search engines can be held liable for use of trademarked terms in keyword advertising. We are litigating, or have recently litigated similar issues in other cases, in the U.S., Australia, Austria, Brazil, China, France, Germany, Israel, and Italy.

Courts in all these countries ahve differed in their verdicts and reasoning oncerning the potential liability of search engines, and there is still no certainty as to whether Google will be viewed as an active trademark infringer when third parties make an improper use of trademarked terms on AdWords or whether the liability passes to the third party advertiser.

Certain recent decisions by the Court of Appeal in Paris were favourable to trademark owners such as Louis Vuitton, although this is based on a history of interpretation of trademark laws in France.  According to the Court of Nanterre Google is an active trademark infringer. The mere fact of suggesting the infringement by using the mark as proposed keyword is enough. On the contrary, the court of Paris took the view that Google does not use the trademark for identical or similar products or services in a commercial manner. So there is no trademark infringement. But nevertheless Google’s conduct was not deemed legal. Google’s liability was based on the common civil principle of fault due to the lack of preliminary control to check whether chosen keywords do infringe third party rights. The Court of Strasbourg, took into account technical measures implemented by Google (a filter and links to check third parties’ rights) and excluded Google’s liability on all grounds. This decision appears however to be isolated.

More recently, Google was held liable by several courts like the Cour d’Appel of Paris in the Louis Vuitton case but Google decided to appeal the case in front of the Cour de Cassation and the proceeding is pending. Google has now lodged an appeal before the French Supreme Court and the court has in turn referred the case to the European level by sending a reference for preliminary ruling to the European Court of Justice. Courts in other jurisdictions have also asked substantially similar question to the European Court of Justice, including the Dutch courts in December 2008 and the German courts in January 2009.

Such reference for preliminary ruling, as referred to in Googles statement, has not yet been answered by the European court and it is difficult to know when the judgment will take place and whether it will help to clarify the debate. Based on several industry sources, it seems there is some heavy lobbying on the Court of Justice including from the European Commission to confirm that there is no trademark infringement from Google and that it should be free to continue its paid search activity going forward as conducted so far.

In addition to the ECJ response, it is worth looking at other decisions pending in certain jurisdictions. By way of example, a US appeals court ruled in April 2009 that a trademark infringement lawsuit against Google by Rescuecom be sent back to a lower court for trial. The Court of Appeals for the Second Circuit in New York ruled that Google should answer to the claim that it infringed upon Rescuecom’s trademarks by selling AdWords ads to Rescuecom’s competitors which appear when Google users search for phrases containing “rescuecom”. Prior to this ruling, it was believed that this issue had basically been resolved by the courts in the US in Google’s favour; there are other cases which provided some precedent for the notion that third parties like Google weren’t liable in cases like this. But that is no longer a given, and Google will have to defend itself against this trademark owner’s claim.

Another interesting case is currently pending in the UK involving Interflora vs. Marks & Spencer. The world’s largest flower delivery firm has sued Marks and Spencer at the High Court in London for sponsoring the word ‘Interflora’ as a search engine keyword. The case could be an important test of how UK trade mark laws apply to keyword advertising. Interflora’s contention is that when a user searches for the word “interfl0ra” a specific request is being made for that trademark only.

There is some UK precedent for this position. The main UK authority on keyword advertising is the Mr Spicy case in which the trade marks owner sued Yahoo! for allowing Sainsbury’s to bid on the keyword “spicy”. The court summarily dismissed the claim and found that the only use of the trade mark itself was by the search engine user. The ruling went further and opined that even if there had been use by the search engine, the use would not affect the essential function of the trade mark as an indication of origin. However the significance of this ruling should not be overstated, because “spicy”is a purely descriptive term and Sainsbury’s therefore had a legitimate right to bid on that word.

The case of Reed v Reed concerned the comparable issue of the use of a trade mark as a metatag within a website (metatags are embedded keywords within a website that are picked up by search engines during the searching process). It was found that such use was not use for the purposes of trade mark infringement, and further was commented that the web-using public are well aware that search results contain irrelevant hits and sponsored links. He thought they would not be confused and infer a trading connection simply because their search returned such a sponsored link.

Although Interflora does not need to establish that the public is likely to be confused by Marks & Spencer’s actions in order to succeed, it has brought the issue of confusion into play by arguing that, although the Marks & Spencer sponsored link itself does not visibly display the Interflora mark, Google users will infer a trading connection that is detrimental to the distinctiveness of its trade marks.

Below are listed some links to relevant articles concerning use of trademarks in search advertising online, and legal cases pertaining to this issue.

http://pblog.bna.com/techlaw/2009/02/google-adwords-in-france-.html

http://www.out-law.com/page-10006

http://www.linksandlaw.com/adwords-pendinglawsuits.htm

http://www.linksandlaw.com/news-update57-europian-court-justice-adwords-lawsuit.htm

http://blog.ericgoldman.org/archives/2009/05/another_lawsuit.htm

http://www.affiliatebestprograms.com/lawyer-files-class-action-lawsuit-against-google-adwords/

http://www.semreportcard.com/how-trademark-protection-will-affect-google-advertisers-and-users/

http://www.nytimes.com/2009/05/15/technology/internet/15google.html?_r=1

http://news.cnet.com/Google-wins-in-trademark-suit-with-Geico/2100-1024_3-5491704.html

http://government.zdnet.com/?p=4804

5 Scientifically Proven Ways to be Persuasive in PPC

I have recently been reading Yes! 50 Scientifically Proven Ways to Be Persuasive by Noah Goldstein, Steve Martin and Robert Cialdini, a pop psychology book in which a huge amount of research on psychology and human behaviour is distilled into one readable volume.

The essential premise of the book is that persuasion is a science, not an art, and hence there are systematic ways of bringing people around to your point of view.

This really made me think about Google and PPC advertising. Is there another advertising arena in which the advertiser (or copywriter) has less space in which to be persuasive? To communicate the core message, or brand promise?

In a PPC ad there are just 95 characters in which to sell a brand, product or service, to persuade people that your ad amongst all the others on the page deserves further investigation. Yet despite the brevity of the message, this channel currently accounts for a huge proportion, maybe 50%, of all advertising spend. To badly paraphrase Winston Churchill: “Never was so much owed by so many to so few (characters)”.

So, while a PPC ad is at heart initially a creative endeavour, I wondered if there were ways in which the principles laid out in the book could be applied up front.

Although any learnings would be fed back and cross referenced with wider creative ideas surrounding the brand, product or service, the ultimate success of any individual PPC ad is judged on a purely scientific basis. Which ad has the best CTR or highest conversion rate?

So, here are my thoughts on some basic principles from the book applied to PPC:

1. Inconvenience the audience by creating an impression of product scarcity. In studies a simple change from “Call now, we are standing by” to “If the line is busy, call again” will greatly improve call volume by creating the impression that everybody else is trying to buy the same product.

  • Learning: Users on search engine results pages respond to an impression of scarcity.
  • Example: “Limited webinar places available. Sign up today”

2. Introduce herd effect in personalised form. A hotel bathroom sign informed guests that many prior guests chose to be environmentally friendly by recycling their towels. However, when the message mentioned that majority of the guests who stayed in the specific room chose to reuse their towels, towel recycling jumped 33%, even though the message was largely the same.

  • Learning: Use local messaging where possible by geo-targeting campaigns.
  • Example: “Join London’s biggest community”

3. “Because” makes any explanation rational. In a queue for a copy machine, a researcher asked to jump the line by presenting a reason “Can I jump the line, because I am in a rush?” 94% of people complied.  A reasonable excuse? However, even changing the reason to “Can I jump the line because I need to make copies?” (the same reason everyone is in the line) led to a 93% success rate. A request without “because” in it generated only 24% compliance.

  • Learning: Include “because” in text ads.
  • Example: “Because we offer a flexible service to fit your finances”

4. Ad campaigns that do not incorporate brands tend to not be remembered. There are numerous examples of ad campaigns that achieve increased sales for competitors as a result of unclear brand messaging. Split testing research on text ads hasn recently shown increased conversion rates and better CPA on ads that include multiple brand mentions, alongside core brand messaging.

  • Learning: Use the brand name, and not just in the URL.

5. Tired people tend to be more receptive to arguments. Two groups were presented a product demo, and then asked to evaluate the possibility of buying it. Group A was tired and a bit sleep deprived, group B was in good physical condition. Group A was much more prone to buy. Website conversion stats for many direct response customers reflect this trend, and it is common to see better conversion rates in the early hours.

  • Learning: Check website conversion stats and consider up weighting spend in the evenings.

Beyond these few examples, I would urge any marketer to read the remainder of the book. It is extremely well written, and the authors present in detail the general principles of persuasion and discuss an abundance of specific uses in engaing fashion. More than anything, they advocate the idea that you can and should test. Something close to the heart of any PPC marketer.

Yes! 50 Scientifically Proven Ways to Be Persuasive

Google Adwords Bid Simulator beta release

Google has just introduced a new beta Bid Sinulator feature on selected Adwords accounts.

Using data from the past seven days, the bid simulator calculates where AdWords would have placed an ad at a different maximum CPC, how many clicks an ad would have received at those simulated positions and how much those clicks would have cost.

Bid Simulator can help answer questions such as “How many clicks could I get if I used a different maximum CPC bid?” or “What would my ad position be with a different bid?”

While it can’t predict the future, the bid simulator allows you to explore what could have happened if you had set different keyword-level bids.

The feature provides increased transparency into the AdWords auction and allows some more informed bidding decisions, all positive thing sin terms of running a better optimised paid search campaign.

Will be interesting to see if this feature is rolled out on all accounts, and beyond this, how robust the data proves to be.

Google Adwords Bid Simulator Reference Guide [PDF]

Google changes search algorithm to favour brands

Google has recently updated it’s algorithm to give more weight to strong online brands in the organic search results.

There’s a great technical analysis of the changes here, but essentially this means that brands are ranking higher than before even for non-brand searches.

Google of course regularly updates it’s algorithms, but this change is particularly interesting in the way it seems to be promoting some quite different ranking behaviour to previous updates.

Motivation? Who knows. Brands are a safe bet in terms of relevant results for a given keyword, and that’s great in terms of usability. However, the changes do somewhat trample on their own core paid search business.

Let me explain.

A question I often hear from my clients goes something like this: “If our brand is ranking anyway for natural search, why invest in PPC?”

Although there are some compelling arguments to invest in both paid and natural search, it’s still a much more difficult sell than PPC for a client who has no pre-existing visibility on the search pages.

Will be interested to see the impact of this going forward, both in terms of SEO and PPC.