Google to provide a pay-per-action advertising model

In the past if you wanted to advertise using Google you went the pay-per-click (PPC) route, having Google place your ad either on its search results page in response to a search term you had bid on (the AdWords model), or on a web page in response to some context-relevant content on that page (the AdSense model).

In either case, you as an advertiser paid Google only if a web visitor actually clicked on your advertisement. If you wanted to place ads where you would pay the website publisher only if the clicker actually performed some action (such as buying something, subscribing, or providing information) you could use other services. Prominent among these pay-per-action (PPA) services are secondary search engines like Snap, PPA broker Turn, and affiliate marketing networks like Commission Junction and LinkShare.

In March, Google announced that it was putting a pilot PPA product on the market. That’s huge news, because Google is such a dominant player in online advertising. The implications for advertisers are significant. A PPA model lets you pay only on successful conversion of the traffic that your ad sends to your site, instead of making you pay only for the clicks themselves. Many PPC ad clicks are of no value – the clicker made a mistake, was merely curious, or was deliberately fraudulent. Or your landing page and site structure were poorly designed and just got in the way of them doing business with you.

With PPA, you don’t pay for those clicks that go nowhere. But the sites hosting your ads expect something in return, namely a bigger payoff when they do deliver a visitor who actually becomes a customer.

Unlike with Google’s PPC product, where sites displaying the ads don’t get to choose the ads and are not allowed to encourage clicking those ads, sites displaying PPA ads are being given a lot more ability to both select the ads, or a basket of ads, and urge people to click. So expect much more traffic to sites, and correspondingly lower conversion rates – but higher ad ROIs.

Because a PPA payout depends on clear policing of what action (if any) was actually taken, it requires a system that can automatically monitor and verify those transactions. And because of this additional layer of technological complexity, PPA has not been widespread on the web. Till now. Google has the clout and the tech muscle to make this work, and work well, and the existing PPA players must be expecting their businesses to feel a great deal of pain once Google gets into full swing.

For small advertisers, Google’s PPA could be a boon, the equivalent of paying a small sales commission only on closed deals rather than their existing PPC approach which involves paying each time a visitor wanders in through their virtual doors.

Google is also testing ads that appear in text, similar to those currently run by Intellitext. These ads appear as words or phrases that have been double-underlined. Hovering a mouse cursor over those phrases pops up a small box containing the advertisement. As more and more online content is read through RSS feeds, the importance of in-text ads grows, so it is not surprising to see Google move into this space.

Got your MOO cards yet?

These days it's increasingly hip to be geeky. If you really want to make a statement about how web 2.0 centric you are, you put your commitment to humanising business, personalisation, niche marketing, and social networking right on your business card. And you do it in a format that deliberately bucks the boring uniformity and conformity of ordinary everyday business cards.

How? You have a batch of MOO cards made up for you, printed in a “widescreen” 70x28 millimetre size, with a range of colour photographs on the back that reflect your personal interests or passions.



MOO cards started out with people who spend a lot of their private time in the 3D virtual world of Second Life, allowing them to put screen shots of their alter-ego online avatars on the back of their calling cards. A simple viral concept, the craze spread rapidly, and now it seems everyone in the web world is doing it.

How do you get your own MOO cards? Online, of course, from www.moo.com

No longer limited to Second Life images, you can upload your own photographs or choose from thousands already available at their site. MOO’s online tools let you easily crop your photos to get the best effect. You order packs of 100 cards with as many as 100 different images per pack, for only US$20, and they will ship anywhere in the world.

Not only do MOO cards say a lot about your cutting-edge geekiness, they present an opportunity to promote your interests – or your business – in a way that regular business cards cannot. Because there is a distinctly casual and “fun” element to MOO cards, you can put photos of your your product, or your service in action without risking looking tacky.

There's another advantage, at least while MOO cards are relatively new. Ordinary business cards get stuffed in a pocket and forgotten. MOO cards are not only ice-breakers for your own first encounters, they get shown to other people long after you have gone.

Social Networks for KLM Passengers and Business Travellers

Loyalty programmes are invariably about a company trying to create a relationship with a customer, with the primary motivations being to secure repeat business and cross-sell services. That’s so web 1.0. These days, the objective is not so much to form a company-customer relationship as to facilitate customer-customer networking relationships with the company providing the context.

There is probably no industry in which loyalty programmes are so widespread as travel, so when a major airline starts trying to get social networks working for its frequent flyers, it may be the first sign of a significant evolution. Not surprisingly it is the Dutch, who gave us the compact cassette and the CD, who were the first to move in this innovative direction.

KLM is the first airline in the world to build online social networking communities for its customers. Aimed primarily at frequent business travelers, and currently centered on specific destinations and activities, KLM’s communities connect people with common travel interests. Its first two destination communities, KLM Club Africa and KLM Club China, and its first activity community, Flying Blue Golf Club, are at the moment available only by invitation.





The benefit of belonging is that members of the networks can get to meet and share experiences with people working in similar markets, facilitating connections that might otherwise never happen. Members also get access to services such as translation, travel advice, or legal assistance provided by KLM business partners. And the networks are not exclusively online: face-to-face networking events take place regularly in he destination zones, as well as back home in the Netherlands.

Members of the golfing network (ever meet anyone from the Netherlands who doesn’t love golf?) can use the community to create profiles of their playing ability, arrange to play with other members who are going to be in the same place, and even use frequent flyer miles to pay for games or buy golf equipment.

It is a fairly bold move by KLM to try to unite its customers. Most airlines prefer to keep customers at bay with a divide-and-conquer mentality. But KLM has a good product and an already very loyal customer base. What KLM has done is leverage and lock in that loyalty not by offering “me-too” benefits like more comfortable seats or better in-flight entertainment, but by offering a unique service of potentially great personal value which other airlines might find harder to mimic.

In a similar vein, a new company called PairUp is offering to help travelers (on any airline) to connect face-to-face with fellow travelers with whom they may already have an online connection. PairUp members uploading their contacts list (from Outlook, or whatever their e-mail or contact management tool is). When they schedule a flight or participation in a conference, they put their flight and accommodation information in the system.

The system shows them people in their list whose uploaded travel details coincide with theirs, and lets them pick the contacts that they are interested in getting together with. The system is not exclusively for use by vaguely connected people – it can be used as a coordination tool by colleagues who need to share travel plans.



PairUp also provides a version of its tool to event managers, allowing convention organizers to offer a pairing-up service directly to people who register for their event. Anyone who has participated in major conferences where you struggle to find out who is attending, then battle to track down the people you want to talk with, can see the benefits of such a tool.

Advertising Boosts Municipal Wi-Fi Ubiquity

There's nothing new about municipal WiFi. It has been around in the US for at least five years (that's 28 internet years), and longer in Japan and South Korea. Now it's available, or in process, in more than 300 cities across the US, and it is becoming almost the norm in major European cities.

The basic idea is that a municipality decides that broadband internet access is a utility, much like electricity or schooling, and that making it available to everyone within the city limits for free can only be good for the city's economy and education levels. The democratisation of information is a strong political driver, and a pretty powerful economic imperative. So the municipalities put up wide area WiFi networks that anyone in town can access with a WiFi enabled computer, phone, or PDA.

Typically these services are free, or at least they are paid for out of taxes, or they are advertising supported. And they are not that expensive to set up: Philadelphia budgeted only $10 million to WiFi enable the whole city, with ongoing costs of about $1 million a year. That's a small price to pay compared with the potential benefit to small businesses, learners, and government.

In South Africa, Knysna has muni WiFi, and there is talk that Gauteng may WiFi-enable the greater Johannesburg area in conjunction with iBurst. There are, of course, political considerations and pressure from internet providers who see their lucrative markets under threat. But inexpensive muni WiFi is inevitable even in South Africa.

Often muni WiFi is paid for by advertising: when you log on to the service, you see an ad. Often these ads are very local, for businesses within range of the nearest signal source. That produces great opportunities for advertising services for small businesses that otherwise would never consider marketing online: local restaurants, dry cleaners, finacial advisors, or car dealers can communicate with potential customers who are right there in the neighbourhood. Try that with TV or local radio.

In the US, a hotspot and advertising company called JiWire now plans to offer ad-supported Wi-Fi through a relationship with Ultramercial. The ads will appear prior to gaining free Internet access at hotspots. To avoid the initial ads you can simply pay a small fee to get online. Once WiFi providers and income generators like JiWire start investing in muni WiFi infrastructures instead of waiting for municipalities to take the initiative, things start to develop at a very rapid pace.

There's an article on JiWire here

Pepsi Goes Beyond 2.0

The Pepsi Generation is very much the web 2.0 generation, so it is appropriate that for 2007, Pepsi (through their agency Tribal DDB) is taking consumer online engagement and brand dynamism to a level not often seen.

Pepsi will be launching a new can/bottle design every three weeks, with each can design being themed to a consumer passion, and linked to a different online microsite that engages consumers in generating content around that theme. The dozen or so themes will include cars, music, fashion, entertainment and sports.



Pepsi’s first site was thisisthebeginning, which encouraged visitors to use a series of templated tools to collectively design a Pepsi billboard. The winning design will become a real billboard that will appear in Times Square.



The next site, pepsifreeride.com, focuses on cars, where visitors can play an online driving game and enter a lottery to win a specially customised Subaru Impreza.



Future microsites will let visitors design their own Pepsi can, with the possibility of the winner’s can actually making it onto the market. Another site will let visitors use their computer keyboard to create music.

You can see all of the Pepsi can designs at pepsigallery.com.

Clothes shopping 2.0

As the passion for mash-ups and social networking goes mainstream, it was inevitable that shopping for clothes online would start to get more interesting. A number of shopping sites are popping up that let you do more than shop at one brand or one store, but let you put together outfits from components and accessories being sold across many different stores. And it would not be 2.0 if the opportunity for consumers to share ideas, experiences, and recommendations were not also part of the mix.

One site that is creating a buzz right now is FashMatch. FashMatch is a social networking site where visitors can put together various combinations of clothing from different designers, and exchange their combinations and recommendations with other shoppers online. And it has a very user-friendly visual format.



Shoppers can search in a number of different ways (say by price or by style), and can then look for “matches” to see what other shoppers have combined with the item that they are considering. In effect, you get to see what other people are wearing, or at least what they think looks good. A voting system lets visitors express their opinions of other people's outfits -- possibly a introducing a whole new level in peer pressure.



When you have put together the outfit you want, FashMatch helps you buy it from the various designer stores from which you have chosen the items.

How Alasoop Uses MailChimp to Help Local Restaurants

MailChimp is an e-mail marketing service provider that makes managing e-mail campaigns very simple. Where services like Constant Contact charge a flat monthly fee that increases with the size of your mailing list, MailChimp charges a very low fee per e-mail sent.

On MailChimp’s site there is a great case study about how Webstellung (a small communications business) in Paris is using MailChimp’s e-mail marketing tools to help local restaurants market themselves.

They created a service whereby they get lunchtime restaurant patrons to sign up to receive via e-mail the daily menus of local restaurants who provide a high-quality but reasonably priced lunch. The service (branded " Alasoop", a tongue-in- cheek phonetic rendition of French for "Dinner's on the table") helps office workers find out about restaurants they may not have tried and let’s them know what’s on special today. It also helps restaurants – none of which have anything like an advertising budget -- find new customers, and to fill their restaurants every lunchtime.

Apparently the restaurants currently piloting the service are receiving increased business and increased repeat business. There is a coupon program built in to the e-mails to provide a little incentive, and it seems there is very little unsubscribing in the mailing lists.

You can read the full case study here on
MailChimp’s site.

Jeep's Comic Book Competition Seeks Consumer Generated Content

In an attempt be more appealing to a younger more environment-conscious consumer, DaimlerChrysler have systematically been rolling out smaller and smaller models in their Jeep range over the past few years. Their latest and cheapest model, the Jeep Patriot, is using some web 2.0 thinking to generate buzz: DaimlerChrysler are asking fans to create a comic book that features the car, if not as the hero, as a key character in the storyline. How’s that for leveraging user generated content?




Together with Marvel Comics, of Spider-Man and X-Men fame, Jeep is inviting budding comic authors to enter “The Patriot Factor” competition and submit story lines for the pending comic book. Marvel’s artists have jump-started the project, posting the first few pages at PatriotAdventure.com

Jeep’s ad agency, Organic, believes that the consumer-generated content approach will help them get exposure in their target demographic which is younger, male, first-time car buyers. They are also pushing the Patriot through social networks and video games, though there is as yet no mention of making it available in Second Life, the virtual world now so popular with marketers. (GM’s Pontiac, Toyota’s Scion, and Nissan’s Sentra have been selling virtual cars there for some time).

The winning entries will get author credits in actual comic books to be drawn and published by Marvel later in the year.

The Best Marketing Blogs

If you are active in the online marketing field, one of the best ways to stay on top of new developments and emerging ideas is to read the more popular blogs that discuss specific aspects that interest you, or to read the often less popular blogs of thought leaders in the field.

Finding those blogs is a process of search and elimination, but since this is the “collaborative web” there’s plenty of advice out there.

A good starting point is Todd Adrlik’s list of the Power 150 Marketing Blogs that he compiled by creating a novel evaluation approach that incorporates the popularity rankings of each blog awarded by a number of different sources. By comparing various indices such as the number of subscribers to each blog as registered by Bloglines, Google’s PageRank, Technorati’s ranking, and some more or less subjective personal criteria, he produced his list of the top 150 marketing blogs in America.

To read each one of these could take you a while, but they are probably all worth a look at least once. Most people will find that they do not have the time to read many blogs on a regular basis, so the trick is to treat a list such as this like a bookshelf in a bookstore: skim through each one when you can and shortlist a few that appeal to you. Then come back and dig deeper into the shortlist, and decide which you want to follow in depth on a daily or weekly basis, and which are worth skimming through every month or so.

You can make this process easier by subscribing to the content of each blog in a feed reader such as Google’s Reader, so it comes to you in one place, rather than you having to go out to each blog to get the latest entries. We’ll cover how to choose and set up an RSS feed reader in the near future.