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Sean Ammirati wrote about the problem of competing with Google, and how an open ad network could be the mechanism to do so. His post at Read/WriteWeb noted Google’s potency in online advertising, and where they could be vulnerable:
I believe in one area Google is more vulnerable than analysts appreciate. More than one-third of Google’s revenue is completely out of their control. To be more specific, in their most recent quarterly results 37% or $1.35 Billion of revenue came from advertising delivered on other sites.
At face value, the vulnerability looks like a prime opportunity for someone to swoop in and grab some market share. Ammirati’s proposal for an open ad network would “force the industry to make money by selling services around the network, instead of taking a percentage of the revenue on the network.”
Scratch a little at the surface, and the blood flows out of this idea like it’s a victim in a Peckinpah film. There are a couple of reasons why organized efforts out of Yahoo and other places haven’t eroded Google’s network.
Reason number one is Google’s algorithms that match ads to context for AdSense publishers. Yahoo’s capitulation to relevance as a determining factor in ad placement in its new Panama ad server can be called Exhibit A.
When Ask.com announced its plans to enter the contextual ad market, they disclosed a novel approach to ad relevancy. Site publishers displaying their ads will be able to choose how to weight what appears on a sliding scale between relevance to context and how much the ads are worth.
The worth of ads brings us to reason number two. That $1.35 billion, 37 percent of Google’s ad revenue that is at risk? It’s off by $1.05 billion, which is the amount Google paid back to those partner network sites for the quarter.
A successful threat that could wipe out Google’s 37 percent would really just cut out $300 million in revenue. Publishers who are getting a piece of the $1.05 billion payback would need to see a better deal to make any kind of switch.
That could certainly happen. Today, it just doesn’t look very likely.
BNP leader M Shamsul Islam is freed on bail from Dhaka Central Jail Thursday in the Gatco scam case. Photo: Firoz Ahmed/ bdnews24.com/ Dhaka, July 31, 2008. Some companies are now providing guidelines on employee blogging policy to protect against negative or sensitive disclosures. The recent case of Petite Anglaise, an English secretary dismissed from her job in France for writing about her employer in her journal points out that a structured approach is needed. Croner recommends businesses explore the impact blogging could have on their reputation. “An employee can sound off about his bad day at work on a blog without fully considering the impact such a posting may. BNP leader M Shamsul Islam is freed on bail from Dhaka Central Jail Thursday in the Gatco scam case. Photo: Firoz Ahmed/ bdnews24.com/ Dhaka, July 31, 2008. Some companies are now providing guidelines on employee blogging policy to protect against negative or sensitive disclosures. The recent case of Petite Anglaise, an English secretary dismissed from her job in France for writing about her employer in her journal points out that a structured approach is needed. Croner recommends businesses explore the impact blogging could have on their reputation. “An employee can sound off about his bad day at work on a blog without fully considering the impact such a posting may. BNP leader M Shamsul Islam is freed on bail from Dhaka Central Jail Thursday in the Gatco scam case. Photo: Firoz Ahmed/ bdnews24.com/ Dhaka, July 31, 2008. Some companies are now providing guidelines on employee blogging policy to protect against negative or sensitive disclosures. The recent case of Petite Anglaise, an English secretary dismissed from her job in France for writing about her employer in her journal points out that a structured approach is needed. Croner recommends businesses explore the impact blogging could have on their reputation. “An employee can sound off about his bad day at work on a blog without fully considering the impact such a posting may.
Motorola announced better-than-expected earnings for the second quarter on Thursday, but the company is still plagued by declining revenue and losses in its cellphone unit, which it expects to spin off next year. The maker of mobile phone and other telecommunications equipment based in Schaumburg, Ill., reported a profit of $4 million, in contrast to a loss of $28 million in the period a year earlier. Revenue of $8.08 billion for the quarter was 7.4 percent below the $8.73 billion reported in the period last year.
In the mobile devices division, sales fell 22 percent, to $3.3 billion. The division reported an operating loss of $346 million, compared with a loss of $332 million a year ago.
Despite that, Gregory Brown, Motorola’s chief executive, said the company saw improvements in the division, particularly related to increased sales of the Moto W755 mobile music phone sold by Verizon Wireless. One reason was because Motorola sought to cut costs to improve margins.
Sales in the home and networks division, which makes cable modems and digital video recorders, were a bright spot, up 7 percent. Motorola plans to introduce 34 phones in the second half of the year, many of them with touch screens and messaging capabilities.
Motorola shipped 28.1 million handsets in the quarter, enough to maintain its market share, the company said.
After a review of its businesses earlier this year, Motorola said it would split itself into two separate publicly traded companies and spin off its unprofitable mobile phone unit to investors. Mr. Brown said the company has made progress untangling the divisions, but it is a complicated process and their analysis is not complete because there are several issues — particularly related to patents and taxes — which have yet to be figured out.
And Motorola has also been unsuccessful in finding a new chief executive to run the mobile phone business.
Mr. Brown said he hoped the spinoff would be complete by the third quarter of next year.
“This is a great opportunity to get greater clarity and improve our overall cost structure,” Mr. Brown said.
Shares of Motorola rose 12 percent in midday trading, to $8.61.
Source: http://www.nytimes.com/2008/08/01/business/01motorola.html?_r=1&ref=technology&oref=slogin
The Doel or the magpie robin is the national bird of Bangladesh. One of the more familiar birds about towns and villages. Shy, silent and unobtrusive during non-breeding season, then skulking in shrubbery and only uttering plaintive swee-ee and harsh chur-r. Conspicuous during breeding season when male sings lustily from favourite tree-top or post, chiefly early mornings and late afternoons. Song punctuated by upward jerks of white fringed tail. Also very good mimic of other birds’ calls. Breeding territories jealously guarded, and intruding males defied with puffing- out, strutting and much show of pugnacity.