Internet Marketing Weekly News Update #075 November 24, 2010

Google the big winner as search spending soars.
A look at search engine advertising spending during the first half of the fourth quarter of 2010 shows a sharp increase year-over-year, with retailers spending 37% more than in the same portion of 2009. According to SearchIgnite, Google's share of the retailer search spending pie increased from 75% to 84% year-over-year, while the combination of Yahoo and Bing saw its share decline from 24% to 17%.

A new search tool helps in-store shoppers zero in on products.
Goodzer has launched a location-based search engine which allows shoppers to locate retailers offering a requested item. The tool initially will cover the New York City market, with plans to make it available in other markets later on.

Gambling and humor sites were biggest gainers in October.
A comScore report on website traffic in October found that sites focused on gambling had the biggest increase in traffic, with a spike of 114% in increased traffic compared with September, in conjunction with the World Series of Poker. Humor sites enjoyed a 25% increase in traffic from September to October.
Marketing Pilgrim

Survey finds social media to be the top search ad priority for 2011.
Covario, a paid search management firm, found that 46% of respondents reported that advertising on social media would be their biggest search spending priority for 2011. Local search advertising was next, cited as the top priority by 18% of respondents, followed by managing the impact of Google Instant, the top priority of 14% of respondents.
Marketing Pilgrim

Google's search formula comes under criticism.
Google has taken great pains to promote the quality of its search results, even while keeping the ever-changing algorithms that produce those results a secret. Therefore, it was a blow to Google when a high-profile New York Times story profiled a retailer that had successfully pursued a strategy of generating high volumes of negative online chatter, and then seeing its search results rise on the strength of the sheer volume of that chatter.
Search Engine Land

Transitional investments result in losses at Barnes & Noble.
Barnes & Noble delivered disappointing earnings for the second consecutive quarter, as the company goes through a transition to a more digital overall business profile. For example, revenues from digital content were strong, but were offset by investments in digital technology. Also, online sales surged, but in-store sales declined.

Groupon appears to be on Google's holiday shopping list.
The New York Times reports that Google is close to a deal to buy online coupon site Groupon, for a price that may be in the $5 billion to $6 billion range. Although terms have not been finalized and the deal is not yet a sure thing, if it goes through it would represent one of Google's largest acquisitions.
The New York Times

Cyber Monday breaks the $1 billion mark.
Single-day online sales exceeded the $1 billion mark for the first time on Cyber Monday, November 29th. The volume of $1.028 billion represents a 16% increase over last year's Cyber Monday sales of $887 million. Overall, signs for holiday shopping volume online are encouraging, with sales since November 1st up 13% over the same period last year, according to comScore.

The European Union investigates antitrust charges against Google.
The European Union is investigating whether Google violated antitrust regulations by abusing its dominance of the European search market to suppress competition. The EU is looking into allegations that Google manipulated search results to lower the rankings of competing advertising services.


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