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Alan Brochstein, CFA has worked in the securities industry since 1986, primarily with the responsibility for managing investments in institutional environments until he founded AB Analytical Services in 2007 in order to provide independent research and consulting to registered investment... More
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420 Investor
  • Is This The Google "Workaround"? 16 comments
    Jul 20, 2013 1:01 AM | about stocks: VRNG

    That brings in enhanced campaigns. As Larry talked about this, enhanced campaigns was a big long-term bet that is designed to help advertisers more easily reach customers across devices with the right message, all within one campaign. We already migrated six million of active campaigns to enhanced campaigns over the last many months. Our goal is to migrate all of our advertisers and campaigns by the end of this month. This effort has been executed at breakneck-speed and client reaction has been generally positive.

    We're getting back evidence from clients seeing improved performance unit using enhanced campaigns. For example Pizza Hut. Social mobile ROI increased by 20%. They found that mobile click through rate has increased by more than 60% while that cost per order on smartphones is dropped by 17%. We believe enhanced campaigns does set up our clients and our business really well for the long-term and the move towards a constantly connected world goes far beyond just direct response and transaction of marketing.

    Larry Page - CEO

    Yes, that's a great question. I will also say maybe one sentence and turn it over to the other guys. I think it's important to keep in mind like enhanced campaigns are the largest change we made in AdWords ever, and it was done pretty quickly, and so I think we're still very, very early stages with that. We changed tremendous amounts for how our teams operate, how our advertisers operate, how everyone buys those ads, what the users see, and we've done it pretty well. It's been pretty smooth which I'm really excited about. But, like I said that's the early stages of a very, very major change. I think we're very pleased with how that's going.

    http://seekingalpha.com/article/1557292-google-inc-goog-ceo-discusses-q2-2013-results-earnings-call-transcript?

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: VRNG
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Comments (16)
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  • Looks like it may be. It certainly is interesting having read through the transcript that Page takes care to note how quickly it has been and is being implemented.

     

    The problem is that's the really the only evidence that this is Google's alleged workaround to the '420 and '664 patent. After reviewing Google's own webpage on the enhanced campaigns, its not clear to me how they remove or circumvent the functionality of the '420 or '664 patent. (Link: http://bit.ly/17sPweZ)

     

    My hats are off to them though, they've done a brilliant job of clouding up the issue.
    20 Jul 2013, 11:06 AM Reply Like
  • Author’s reply » That's kind of my view, but hard to believe they would stage such b.s. I guess for a few billion dollars though, it's worth a shot!
    20 Jul 2013, 01:09 PM Reply Like
  • Justin Giles put it best a while back but I'll paraphrase here: GOOG is risking their bread and butter core business, losing customers and their primary revenue base, on the order of several billion per quarter, just to try and avoid a payment that will only just exceed 1 billion. Its sheer lunacy, and if I were a GOOG shareholder, I would not be happy. They are having enough issues with their advertising business the past several quarters to begin with...
    22 Jul 2013, 07:48 PM Reply Like
  • you should have highlighted another part
    ''and so I think we're still very, very early stages with that. ''

     

    it has nothing to do it with circumventing VRNG patents
    20 Jul 2013, 02:57 PM Reply Like
  • Author’s reply » I hope you are right. It seems totally bogus to me that they could have a work-around so suddenly. If we are wrong, though, it would shorten the potential royalty period.
    20 Jul 2013, 05:21 PM Reply Like
  • I still say Fugazi about their workaround. Just more bullying by GOOG.
    20 Jul 2013, 04:49 PM Reply Like
  • Author’s reply » I tend to agree.
    20 Jul 2013, 05:21 PM Reply Like
  • What we need here is a specialist in the specific application of these two patents to explain what actual technology these patents protect and then compare the actual inner workings of enhanced campaigns to see if its still infringing upon the patents or if it actually is a different method of which does not infringe on the patents.
    20 Jul 2013, 11:17 PM Reply Like
  • It still brings me back to the question of why they would have a workaround if they were "not guilty" from the beginning.
    21 Jul 2013, 02:03 PM Reply Like
  • Why have a workaround? Intelligent hedge for one and dealing with the reality at hand for two.

     

    Google has a jury verdict (and sometime this century a final ruling from JJ) working against them. Whatever else may happen with appeals, USPTO review, new laws in Congress, whatever; they need to be prepared for the eventuality that they 'lose' on all counts and have to start paying up. From their perspective, it's best to try and have damage control in place now 'just in case'.

     

    They may feel that they weren't guilty of infringement and feel that they still aren't, but a court has found otherwise and for GOOG that's a practical reality that must be dealt with.
    22 Jul 2013, 07:31 PM Reply Like
  • To cover all their bases. People still seem to believe, that providing a "workaround" admits guilt. The jury already said Google infringed. Whether they win appeals or not, this supposed workaround would reduce any royalty payments further. It's no different than why they will take this case as far as possible. To prevent other companies to do the same thing. How much is that worth? That is a subjective viewpoint. Only Google truly knows what they are willing to spend, to go to the ends of the earth to stop patent trolls. The ludicrous part is Google is a troll themselves.
    22 Jul 2013, 08:46 PM Reply Like
  • wouldn't the USPTO review of the patents take care of the running royality if they are overturned? So Why risk billions of $ with the workaround if the patents are not valid in Google's opinion.
    23 Jul 2013, 11:32 AM Reply Like
  • I am an SEM specilist, I've been managing adWords accounts for 8+ years. Nothing in Enhanced campaigns diminishes the importance that CTR has on Quality score. Basically it is an easier way to manage your campaigns by consolidating all device targeting into a single campaign.
    22 Jul 2013, 05:52 PM Reply Like
  • Author’s reply » Thanks so much from the outsiders like me who didn't think so but wanted to verify!
    22 Jul 2013, 06:54 PM Reply Like
  • "The way Quality Score is determined does not change in enhanced campaigns."

     

    More info here:
    http://bit.ly/17sPweZ
    22 Jul 2013, 08:56 PM Reply Like
  • Author’s reply » Thanks. Here's the quality score info too: http://bit.ly/1401vUn
    22 Jul 2013, 09:47 PM Reply Like
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