Jeff Molander_

Microsoft Might Take Stake in Facebook - WSJ

And now that Microsoft has acquired Jellyfish.com what changes? IMO, Jellyfish.com offers a very similar demographic (to Facebook??).

I'm reading a lot of comments such as "It's not a game changer" (coming from analysts). This conclusion relies on things not changing much in terms of how the Web gets monetized. Even Google understands what's coming next -- a slow-down in pay-per-click ad model spending.

Proof's in the puddin: Look no further than Google's:

1) Launching a cost-per-action ("pay-per-action") ad model

2) Launching a tool allowing advertisers to manage (automate placement of) pay-per-click ads against a pre-defined cost-per-action

Google understands the game is about to change and is moving. Is anyone paying attention? MSFT is and they're locking up intellectual property in this move -- one that combines multiple, successful and innovative digital shopping models.

Jellyfish takes a best of breed approach and "mashes them up" to the amusement of consumers: Ebates + Woot.com and on the advertiser-side, eBay's Shopping.com + Google's AdWords auction environment + Commission Junction's (VCLK) performance-based cost model (cost-per-action) with a twist of Google (auctioning off ads).

It all ads up to valuable IP that Google, in theory, cannot access.

Google vs. Microsoft: What's Going on Here?

Yes, I'm blurring a bit so thanks for bringing me back into focus :)

Indeed, what's a "promotion" and a "shortcut"? It's all about disclosure and walking that fine line that each company (GOOG and YHOO) walks so very well.

Google vs. Microsoft: What's Going on Here?

Related to my prior comment. Here's more details/data on usage of search for navigation and the recent shift to the browser bar. From DMNews.com:

www.dmnews.com/cms/dm-...

Is Internet Advertising Really Worth Billions?

What does this (dependence of brands on Atlas and DoubleClick) say about how consumers use the Web? It says they use search to navigate -- not necessarily to discover.

Affiliate marketing, domaining -- search marketing agencies for that matter have all discovered and 'monetized' the fact. Where have marketers been? For how long will middle-men get to cash in on what amounts to navigational habit? As I see it, there's a sub-economy working behind the scenes: an 'ignorance economy' wherein what marketers' collectively haven't understood has been leveraged into cash.

As well, continued dominance of these companies is threatened by Web 2.0 -- namely the death of the browser and adoption of RSS/XML technologies that allow users to view the Web sans browser! Adoption of RSS has been rapid among popular hang-outs (i.e. Yahoo, MSN -- virtually every major portal provides feed aggregators) and relative newcomers like Bloglines.

With Nielsen et al setting up to focus less on pageviews and more on user "attention" (i.e. length of stay on publisher sites) we're forced to examine how today's major players will cope.

How is Almighty Google coping? One word: Feedburner. One of their smaller yet most important acquisitions to date.

Google vs. Microsoft: What's Going on Here?

A lot of research out there (Jakob Nielsen has published some) indicates tremendous confusion among the masses (not just older folks) as to separation of ads from non-commercial information. Example. As well there's a multi-million (some say approaching billion) dollar industry out there based (to date... things are changing) entirely on arbitrage called domaining. This is built entirely on syndicated paid search ads and capitalizes on typical, routine Web surfer traffic and usage patterns. It's what gives Marchex most of its valuation. So IMO Web marketers are forced to appreciate (even more!) the confusion of what is and is not an ad :)

As well, let's face it -- GOOG is a public company and they have good reason to not improve non-commercial search results and blur the lines. GOOG is not alone -- YHOO and others are in same boat.

On the subject of Google not trying to trick or play games with Web users (leverage typical behavior patterns) I'm not encouraged by their investment in AdSense for Domains. More importantly I'm encouraged to look at this support of interested third parties (companies like Marchex) as a short term play for GOOG.

Nonetheless, GOOG has been on quite a tear and they continue to make very few mistakes. That stated, I appreciate your being a contrarian, Jason!

Google vs. Microsoft: What's Going on Here?

Great thoughts, Jason. Indeed, "Everybody's onto the text ad trick by now" but Google has made some interesting acknowledgments of this fact -- and responses to it (by cleaning up AdWords through creating affiliate-focused restrictions and AdSense through offering more control).

As you seem to be pointing out, it will be interesting to see how social media monetization shakes out considering that it may be monetized in new, innovative ways (beyond the page view and/or cost-per-click). Scott Karp and I seem to believe that Google's new Pay Per Action hedge could explode revs for GOOG in the area of blogs -- opening the door on the gaming of "per action" similar to the way domainers, as an example, have gamed the Pay-Per-Click system. This could spell big opportunity for GOOG in terms of dominating the <strong>smaller&... nooks and crannies of the social Web (vs. the Facebooks)... just as they've done with AdSense.

Speaking of, considering all of your points above, I think we need to also pay some attention to how GOOG is proceeding to clean up its AdSense network via the Pay Per Action scheme and kicking out the Made-for-AdSense crowd.

Rumor Mill Buzzing With Possibility of Microsoft/Facebook Merger

Anyone notice the Zoho partnership? Now Facebook users can "access and edit your documents in Zoho Writer, spreadsheets in Zoho Sheet and presentations in Zoho Show from within your Facebook account. Add that to the ability to manage your calendar with 30boxes' Facebook app, and your Twitter/Pownce with their respective Facebook apps, and you can start to see how you could spend a great deal of time within Facebook."

Read 'em and weep, Google.

This puts MS into the Web-delivered office tool game lick-ed-y-split. It seems obvious now that this is inevitable.

Agencies, Publishers Might Not Welcome Google or Microsoft Acquisition of DoubleClick

Ashkan:
Your suggestion that agencies will drop DCLK's tool set based on automation fears seems extreme. As well, aQuantive has proven that a company can successfully navigate these waters -- offering agencies a tool set (Atlas), distribution (DrivePM) while directly competing with them (AvenueA). Why can't big G do the same? I guess time will tell!