Posts Tagged ‘News’

Both Google & Microsoft reported their earnings today. Both search engine companies missed analyst’s estimates bringing up more question about how much the slowing economy is weighing on the search engine market.

Google fell $49.70 (-9.3%) to $473.74 as of 9:35PM PST. Microsoft slid $2.14 (-7.8%) to $25.37.

The missed targets brings up the concern that searchers are spending less online and the effect of the economy on the technology industry as a whole. Google reported a slowdown in the growth of consumers clicking on their online ads. Eric Schmidt said that Google faces “a more challenging economic environment” for the first time in a while. Though some technology companies, most notably Intel Corp, was able to beat estimates, the entire technology sector was brought down by the slow reported earnings.

Google also reported a higher than expected increase in research as their spend rose 65 percent which cut into their profits. Administrative expenses also rose 49 percent partly due to their fight against Viacom Inc.

LeadQual as a whole is starting feel the impact of the economy as many clients are curbing their spend or targeting higher ROI at the expense of volume. As LeadQual’s clients range across numerous industries, we see that some sectors such as real estate are hit the hardest while others like B2B continue to remain more steady. Though marketing dollars are being cut, many companies do end up allocating a larger percentage of their budget to SEM because it’s a medium that is fully trackable and easy to measure.

Paul Lee
Director of Online Marketing
LeadQual - Search Engine Marketing

Some quick updates on the MSN - Yahoo saga.After the most recent offer was rebuffed by Yahoo, both MSN & Yahoo are potentially targeting AOL. As the Aug 1 shareholder meeting nears, both sides are trying to leverage their position and out position themselves for what is bound to be a heated conversation where landscape changing decisions will be made.

Will Yahoo merge with AOL giving Yang some leverage going into the meeting that Yahoo is heading in the right direction and do not need MSN? Will MSN come in and scoop them up for their own benefit both in their standings in the search world but also for this upcoming meeting? Either way, what kind of impact will that have on the Yahoo Google partnership that apparently Yang was overheard admitting that it was an anti-competitive move against MSN?

The battle continues. Stay tuned to see what happens when the dusts settles.

UPDATE: This feels like following a sports rumor mill where information gets leaked and rumors go around that particular athletes will be traded..

There is some word going around that the news about the AOL acquisition is being more participated by people close to the Time Warner company. Time Warner apparently sees this situation as an opportunity to unload a depreciating asset. AOL once a leader in the internet space has lost tremendous brand awareness and affiliation with web browsing and as an internet provider. Neither Microsoft or Yahoo! are trying hard to acquire AOL but are simply listening as Time Warner makes the pitch. A deal at this point involving AOL before the Aug 1 shareholder date could be a reach.

Paul Lee
Director of Online Marketing
LeadQual - Search Engine Marketing

Yahoo! Inc turned away a proposal by Microsoft and activist shareholder Carl Icahn. The new proposal would have broken off Yahoo’s search business to be sold to Microsoft while the rest of the business would be left under the control of Ichan’s new board.Yahoo! balked calling it an “odd and opportunistic alliance” that doesn’t consider the best interest of Yahoo’s shareholders and investors. Yahoo Chairman Roy Bostock also made a statement that Microsoft and Ichan brought a “take it or leave it” offer. He said “It is ludicrous to think that our board could accept such a proposal. We will not be bludgeoned into a transaction that is not in the best interest of our stockholders.” Yahoo noted that Microsoft and Icahn did try to sweeten the offer by offering to buy $8 billion in Yahoo shares for $35 each in addition to purchasing the search business for $1 billion dollars. Yahoo! and MSN would also have struck a long term search engine partnership that would have generated more revenue for Yahoo!.This is probably the last proposal to be brought to the table before the upcoming shareholder meeting on Aug 1st which is expected to be a heated battle as Yahoo’s CEO Jerry Yang and Icahn fight for the control of the board.Yahoo! would have been opened to selling at $33 a share which was the last price Microsoft offered 6 months ago. The original offer was $44.6 billion.

Paul Lee
Sr. Manager of Web Marketing
LeadQual - Search Engine Marketing

Did you know the Google Mini Fridge can be plugged into your car lighter? Did you know the Google Mini Fridge can be set on Cold or Hot? Did yo know the Cold & Hot switches are switched backwards? For those who have been using Google Adwords extensively for their businesses may know about a little swag called the “Google Mini Fridge”. Most small business users are often surprised when this gift appears at their door but for those who have been advertising on Google for years know, this is the swag you wanted. Why? The fridge itself is nothing spectacular but it’s almost a trophy item. It’s a badge that says, you’ve spent a lot of money on Google. Hopefully this translate to having a lot of experience rather than having wasted tons of money. Regardless LeadQual is a proud owner of a mini-fridge. See it below!

What does that mean for LeadQual? It means we have tons of experience…In all seriousness, since several of us have done PPC and SEM for many years we’ve come across many fridges in our time.

So how does one receive such a novelty item?
You have to hit particular milestones. Whether that be a million clicks, 3 million clicks, 1 million leads, it is certainly all over the place depending on who you ask but what is certain is that you have to hit the million mark to be considered. The three figures I noted above were real click and lead milestones I’ve heard that warranted a Google Mini Fridge. It seems to be its really up to the Google reps.There are some interesting things people are doing with the fridge. Some are posting it on Ebay. Others are using it to create back links for their blogs by running contests that requires the entrants to link to their blog. Others like us are just using it as a beauty piece occasionally used to hold cold drinks for the office.

Paul Lee
Sr. Manager of Web Marketing
LeadQual - Search Engine Marketing

Is Yahoo quietly trying to get bought out by Microsoft?

“But the story didn’t quite end there. Since then, Microsoft and Yahoo have gone back to the table twice. First, Microsoft entertained the possibility of acquiring Yahoo’s search for $1 billion and a buyback of Yahoo stock for $8 billion. After that deal fell through, we once again thought it was over. But now, they’re back to talking about a full buyout and Jerry Yang, not Ballmer, is starting to look like the CEO who really wants to get the deal done.”

“Sources close to the deal told TechCrunch that Yahoo “offered to sell to Microsoft for the low $30s per share, and below Microsoft’s original offer immediately before they signed the Google search deal.” And although that smacks of desperation, there’s even more trouble afoot for Yang and company. “

Jerry Yang is in quite a predicament. Shareholders want him to sell, yet due to their pressure he has little negotiation leverage thus forcing him to sell much cheaper than he would have wanted. But if he sells at a low price, stockholders would be even more discontent that he let the original deal get away. If he doesn’t sell, the next August 1 shareholder meeting is going to be a battle he won’t want to deal with. Lose-Lose situation. What is it going to be Jerry?

Paul
Sr. Manager of Web Marketing
LeadQual