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Limited Competition in Secondary Markets

I recently took the AdWords professional exam again and the section I failed was international search. It is easy to do that because if you are primarily focused on the US market there are parts of search you can't appreciate until you see them. When I was in Canada about a month ago I noticed PageRank 4 pages dominating search results where you would need at least 100x the link equity to compete on Google.com. Some of the most valuable US keywords only have a couple advertisers in Canada.

In The Slums of Search, Gord Hotchkiss wrote:

At Enquiro we actually did studies and asked people why they were reluctant to click on sponsored ads. The most common response was that they didn't trust the advertiser. They felt that by clicking on the link they would end up on an affiliate or spam site and may get caught in a never-ending cascade of pop-up windows. Searchers were very wary. In the US, this attitude began to change as known brands began to adopt search.

If Google can't attract the right advertisers that also means that the organic search results in that geographic market are likely easy to manipulate. In many underdeveloped markets around the world, PPC offers greater opportunity than SEO because their is virtually no competition, but as the markets mature and margins get squeezed, doing SEO and owning a brand becomes more profitable than PPC. Either way you approach it, if you can compete on Google.com you should be able to dominate foreign markets. The only issue is scale.

Estimating Market Scale

Google offers an ad preview tool to show you what ads look like in various markets, and you can take advantage of their traffic estimator tool to estimate the size of a market.

If you are in a market dominated by engines other than Google (like China and Russia) then of course you have to use tools other than Google to estimate the size of the market.

How to View US Google Search Results

If you are international and do not want to get redirected to your local version of Google you can view Google.com's results by going to Google.us. While on Google.com you can append &gl=us to see the related US targeted ads. Another option to view international Google search results by using this Google global Firefox Extension or use Joost's plugins that turn off personalization.

How Google Makes Lazy US Only Advertisers Buy Foreign Traffic

While in the Philippines I have noticed that some $20 keywords (in the US) have few advertisers here, and many of the ads are for garbitrage websites. For example, one page advertising on student loans went to a page with stolen content, and had a page title about mesothelioma. If an advertiser choses US only search distribution but opts into the content network they are probably paying for exposure on that page.

When I switched Google to only search local pages the number 1 ranked page for online degrees was an off topic forum thread. Limited competition means great opportunity for those who understand the local culture and are able to gain international recognition.

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WSJ: Getting an Oil Change Off eBay [sub req]

EBay is aiming to take over the phone book's customary role as the first place people turn to find local services from housecleaners to accountants.

While eBay Inc.'s focus for now is on auto services like oil changes and brake jobs, its goal may be to connect consumers with local businesses of all kinds. This could signal a major shift in the way consumers shop for such services and greatly affect pricing and competition among local shops.

Does eBay have any sort of a map? How are they going to do local without one? Craigslist (which eBay owns part of) links off to Google and Yahoo! maps. I think Google and Yahoo! get information from the same source: Navteq. Not sure if Navteq is going to go after local search as well, but they recently partnered with Zagat.

Any chance someone would want to scoop the leading map company? Are there any other high quality digital mapping companies?

Froogle was recently upgraded, and without a hitch! Google's Froogle Drops eBay for a Day.

When Paypal was upgraded in June Google overshaddowed the news with the announcement of Google Wallet.

Here is yet another article about who should be afraid of Google.

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Right before Black Friday Google unveils a new local shopping tool. Froogle now mashes up with Google maps. According to a Silicon Valley article:

The Mountain View, Calif.-based company developed the free tool to help consumers avoid the frustration of traveling to a store that no longer has an item on their shopping lists, said Marissa Mayer, Google's director of consumer products.

Froogle, a comparison shopping site that Google launched three years ago, will continue to give visitors the option to buy the merchandise online. Google receives a commission for the online referrals.

I am not sure what they meant with that Google receives a commission bit. Is that just for the ads near it? In 2003 when Mike Grehan interviewed Craig Nevill-Manning, Craig said:

BUT - the bottom line is - they are unpaid listings, they're unbiased. They're the best results we can find for those products online. ... It'll be free forever.

The New York Times made it sound as though the Silicon Valley article was misquoting or overtly vague in their description of how this service will make Google money.

The service will be freely available to merchants in the United States, Ms. Mayer said. Google, as it frequently notes, plans to gain revenue from the new Froogle service by placing relevant text ads on the same page as the local results.

The company also believes that it gains revenue when users employ Google more frequently as its services become more useful.

The Silicon Valley article also stated:

Initially, Google is depending on a contractor to pull the inventory information from several hundred major merchants. The search engine hopes to make the service even comprehensive by encouraging stores to submit their own customized merchandises list to the newly created "Google Base" - an information clearinghouse for everything from family recipes to scientific formulas.

What vertical search site is safe?

A while ago Battelle had a highly related post about comparison shopping called The Transparent (Shopping) Society. The New York Times made it sound like the eventual goal of this launch is spot on with what John was describing:

Marshal Cohen, chief retail analyst at NPD Group, a market research firm in Port Washington, N.Y., said that if Froogle delivered up-to the-minute inventory updates from retailers, "consumers will finally know whether a trip to a store is worthwhile."

Google wants to be the default inventory information clearinghouse. Users love defaults. I am guessing the value of being the default shopping search site is worth far more than any value they would extract by charging for the feeds, at least off the start. Just like with regular search, there will be incentive for merchants to spam this service. Any idea how Google will fend off spam if they aren't charging? Or are they charging?

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Ad Links by Google:
Peter D shows new AdSense change

Google Local Business Center:
wonder if the Yellow pages are feeling yellow? Andrew Goodman has the details. for now US only.

Wonder What Google thinks?
of a free product that strips out their published ads for the user

their response to autolink thusfur has been nothing short of pathetic. nice job Mark.

Ask Jeeves also recently created a FireFox toolbar.

Google Sandbox:
Does the sandbox only affect phrases containing popular words?
found on ThreadWatch

I have recently seen a site under a month old rank for some rather short query sets.

New SEO / SEM Blogs:
maybe not new, but at least new to me.
Got Ads? - seems to be more focused on the ad / ppc side of the search game. have not read it a ton yet but have seen John contribute many good posts on Andrew Goodman's SEM 2.0
Wolf Howl - should have mentioned and found this one a while ago as multiple friends have recommended it to me. his most recent post references Flatland, so it must be a cool blog :)

the conference I am at:
ended today. I could blog about a bunch of stuff but now find myself headed toward the closing party, which I suspect may give me more stuff to blog about.

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Bill Gross (who founded Overture) will be talking at Web2.0 and unleashing a new search venture / business model later today.

He also has his paws in a community local search product called Insider Pages. A few potential competitors in this field are Judy's Book, Craigslist, City Search, and the big search engines / portals themselves.

When Mr. Gross announces his new idea later today I am sure John Battelle and Andy Beal will post about it, and I will update this post.

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Beta No More...
Yahoo! Local comes out of Beta. Google is also promoting its local search product using the "Looking for something in your neighborhood? Try Google Local." line

Beta get Back to the Drawing Board...
via blog comment Webmaster Toolkit informs me that we sent MSN Beta too much traffic and the site is down. Imagine what will happen when they get their free porn image gallery online :-(

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Get Loco Local
Stefanie Olsen writes about the new Yahoo! and Ask Jeeves local products.

Yahoo! Launches Yahoo! Local
http://local.yahoo.com/

Yahoo! still has an ongoing relationship with CitySearch but will be using Yahoo! data to power this beta release. If it does well enough Yahoo! may replace Yahoo! Get Local with the new Yahoo! Local product.

CitySearch Finds Ask Jeeves

Ask Jeeves just announced a partnership with CitySearch for the new Ask Jeeves city guide product.

Ask Jeeves on Monday also added a new feature to its results for queries on cities, called a city guide unit, which displays local information such as weather on metropolitan areas. The company also introduced a service that lets people call up local maps and driving directions. Ask Jeeves' upcoming service will complement its "Smart Search" feature by letting people retrieve a box of information on locally relevant search queries, such as "Manhattan Thai restaurants" that would include address information for a business and user reviews or ratings.

Ask Jeeves signed an exclusive multiyear deal with CitySearch and intends to start serving the CityGuide ads in September.

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Google Local Search

Many other search engines think they have the perfect solution for advertisers. Some forget how far ahead of the curve Google is. Today Google launced a new local search at local.google.com. "For now, Google will not display local advertisements on the service, but it plans to do so in the future." - News.com

Google did provide hyperlinks to Yahoo! Maps and MapQuest when I search for "Papa Johns 16803," but you get regular search results if you try to find Carmen in San Diego.

Recently Yahoo! added its SmartView service to Yahoo! Maps.

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Yesterday Yahoo! made a press release stating the Overture will launch new local search products in the upcomming months.

I see you baby. Shakin that ass, shakin that ass... <--- good song

Today Yahoo! announced that they are making Yahoo! Maps more interactive by including the locations of various businesses within city locations. The new Yahoo! technology goes by the name of SmartView Technology.
For example, you can check out Thai restaurants in New York City near the Greek Coffee Shop.

(found on Search Engine Lowdown)

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