Google showdown: Can Barry Diller win IAC search advertising war?
Push Google off its search advertising throne? Not so FAST! I said earlier this week.
Barry Diller, King of the IAC search and advertising empire, does have royal designs of his own, nevertheless.
CEO Diller has set in motion a series of initiatives within his integrated conglomerate of Web properties fueling an impending dual head-on attack on Google, an all out search advertising “war,” in fact, with Google the target.
Diller is bullish on IAC Media & Advertising and he shared his vision with investors in the company’s Q1 2007 earnings call today.
At the same time, his lieutenants are taking to the virtual streets to preview the IAC plan of attack and to sow advertiser, publisher and searcher discontent with the present ruler of search advertising, Google.
Ask.com Search Quality vs. Google.com
Doug Lebda, IAC President, on search application ammunition:
The businesses are working together to launch applications at Ask that you will see shortly. We have plenty of powder in the keg and are extremely excited about the launch of the next-generation algorithm in our search. Called Edison, it upgrades the capabilities of Teoma and DirectHit to do much more with the social aspects of relevancy in queries, going deeper into user traffic and communities to calculate the authorities within a given area and provide a much better search result for the user.
Peter Horan, IAC Media and Advertising CEO, on guerilla marketing efforts (as cited by Forbes):
The thing we're trying to address is that people are sleep-searching. They're not thinking about which search engine they're using, and of course that benefits Google. We want to cause consumers to think about another option. The campaigns here and in the U.K. were designed to be intriguing and disruptive.
We want to highlight our search algorithm because somewhere, deep in the heart of a search engine, is a difference. Ours is fundamentally different from Google, and we want to put the spotlight on that. What you're seeing is the first few weeks of a longer-term campaign. It's typical to start a campaign with a teaser phase. That's what this is. The branded elements are coming soon.
It's the opening shots of a war.
Contextual Product Integrated into Ask Sponsored Listings vs. Google AdSense
James Speer, GM Search Marketing at IAC Advertising Solutions, on maneuvering in the field:
We have consistently heard that publishers want more diversity in their revenue streams and transparency into the true value of their inventory. We fully expect that our new contextual product will satisfy the needs of these content owners.
Ask.com has generally been more transparent with its search ad distribution partners. Most of those relationships include an established revenue share defined up front, rather than the usual "black box" approach taken by Google, (as cited by ClickZ).
Paul Vallez, Director of Product Management, Search Marketing, IAC Advertising Solutions, on new weapons:
How is this product different from our competitors, you ask? Three important reasons, each one a paradigm shift:
* It gives publishers more control over yield and relevancy
* It gives publishers more creative ad unit opportunities
* It allows both advertisers and publishers more control over where and what ads are displayedWe'll be working with publishers to customize their implementations with some of the following options:
* New customized relevancy thresholds for publishers
* Innovative yield management thresholds that allow publishers to optimize their monetization effortsYou won't find the standard white background with text ads. Our hybrid text + graphical contextual units will offer a fresh new look to performance based contextual advertising.
But what about offering “a fresh new look” to Ask Sponsored Listings to go after the biggest Google bounty: AdWords?
Not only is Diller presently not going after AdWords, IAC supports the growth of AdWords!
In July 2004, then Ask Jeeves, Inc. announced:
It has extended its relationship with Google as a provider of sponsored advertising links on Ask Jeeves' global search and portal brands through 2007. The extension renews the agreements with the Company's flagship sites, Ask Jeeves (Ask.com) and Ask Jeeves UK (Ask.co.uk). Google's sponsored links product complements Ask Jeeves' own suite of advertising products, including its proprietary paid listings product and branded ad units.
Google’s AdWords complements Ask’s Sponsored Listings? That’s no way to coddle your enemy!
Will Ask continue its dependency on its biggest competitor this year, or not?
Diller is non-committal, but forecasts a decision in the coming months:
We are in discussions with everybody. The Ask/Google expiration at the end of the year, I think we will be way ahead of it in terms of solidifying what our future is going to be. And that is about all we can say about it right now, other than I am kind of certain it will be done by summer.
In discussions with everybody? Lebda intimates a predilection for Google:
It is clearly Google helping revenue per query increase.
Tom McInerney, IAC CFO says the company is managing its Media & Advertising business:
For the long term and not quarter-to-quarter profit performance.
If so, a long-term win against Google in the search advertising war necessitates independence, not coopetition.