Andy Beal's Marketing Pilgrim

Pilgrim’s Picks for June 12 - Real or Rumor Edition

Posted: 12 Jun 2008 09:17 AM CDT

Today’s Picks have a healthy balance between rumor and fact.

Rumor: Yahoo’s Jeff Weiner has submitted his resignation, according to TechCrunch.
Real: Yahoo’s Jeremy Zawodny confirms he has submitted his resignation.
Rumor: Yahoo (again) has plans to combine its Right Media and AMP ad platforms.
Real: WidgetBucks has raised another $10M in funding.
Not Sure: It seems Firefox 3 is planned for general release on June 17th. Yet, even Mozilla has the caveat: "It is our expectation to ship Firefox 3 this upcoming Tuesday, June 17th" (emphasis added)

Pilgrim’s Update: Save 34% off Andy’s new book - Radically Transparent: Monitoring and Managing Reputations Online

What Eric Schmidt Really Said; Five Google Statements Translated

Posted: 12 Jun 2008 08:38 AM CDT

Google CEO Eric Schmidt discussed so many topics at an event sponsored by Syracuse University’s Newhouse School of Public Communications yesterday, I’m pulling quotes together from four different articles!

So, as usual, Marketing Pilgrim does the hard work, so you don’t have to.

Please let us forget "don’t be evil"

Schmidt said "Don’t be evil" is meant to provoke internal debate over what constitutes ethical corporate behavior, rather than representing an absolute moral position.

"We don’t have an ‘Evilmeter’ we can sort of apply — you know — what is good and what is evil," Schmidt said

Marissa Mayer said much the same back in April, and it appears that Google would rather we let it off the "evil" hook. It seems like "don’t be evil" was great for Google, while it was a young start-up, looking for publicity, but now it’s all grown-up, it’s clear the motto restricts Google too much. My question to Schmidt is this; why is Google so keen to step away from "don’t be evil?"

Stop calling us a "one trick pony"

Schmidt reaffirmed that the company’s primary goal is not to make money selling ads, whether it is banner ads or ads on Web searches, online video, TV and mobile phones.

"The goal of the company is not to monetize everything, the goal is to change the world … We don’t start from monetization. We start from the perspective of what problems do we have," he said

OK, I’m scratching my head on this one. I mean, seriously. Does Google really expect us to believe that the company’s primary goal is not making money? If that’s the case, why isn’t Google.org the main focus? Why not give away all of its profits to countries that need more than just personalized search? Things like water and food are a little more useful than a search engine that remembers you like Italian food.

We prefer an independent weak Yahoo

"We think an independent Yahoo is better for competition, for innovation and so forth," Schmidt said.

…and besides, if Yahoo and Microsoft merged, the combined entity would dampen our plans to make money change the world.

I’ll spy stay on the Apple board for as long as I can

Still, Schmidt reiterated that he must occasionally be excused from Apple board meetings…"I’ve only done this once or twice, so it’s not as common as it sounds," Schmidt said.

Schmidt was asked whether the increasing competition between Apple and Google on the mobile front might ultimately prompt his resignation from Apple’s board. "It has not so far," he said.

Schmidt maintains that Google’s Android will be "quite different" from Apple’s iPhone. Still, it will be tough for Schmidt to remain on Apple’s board, once Android is nipping at iPhone’s heels.

Newspapers are great, they write the content we monetize!

…Schmidt said DoubleClick’s system for serving up online display ads could generate "significant" revenue online for newspapers. "It’s a huge moral imperative to help here," Schmidt said…

I was going to translate this one for you, but The Huffington Post nails it…

Google also has a financial incentive to bolster newspapers because the stories, pictures and other content that they distribute online creates more opportunities for the company to make money from short advertising links that appear on millions of Web pages each day.

Did I miss anything? Did you read a Schmidt statement you thought was interesting? Share it below, thanks!

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Google Moon? Brin to go Where No Bot Has Gone Before.

Posted: 12 Jun 2008 07:59 AM CDT

Check ‘em out, y’all! Lunar shuttle tickets. I got smokin’, non-smokin’, first class, coach, by the window, by the aisle. Lunar shuttte tickets.

Anticipating its pursuit of world domination will be complete sometime during the second quarter of 2010, Google co-founder Sergey Brin has booked a round trip ticket to outer space, with a launch date set for 2011.

Bucking that crazy trend set by NASA in the early 60's whereby actual qualified astronauts were sent to outer space, Brin, the 34-year-old president of technology for the search-engine company, shelled out a $5 million deposit for a seat aboard a Russian spacecraft, according to tourism company Space Adventures. Brin is scheduled to carry out missions that may include pharmaceutical testing and experiments on computer circuit boards. No word on the specific "pharmaceutical" Brin might be testing.

Total cost of the trip is estimated at more than $35 Million. The two week voyage will orbit the earth about 150 to 200 times. Whoa, I’m getting dizzy just thinking about it.

Brin joins an exclusive club that are using their fortunes for space travel.

“I am a big believer in the exploration and commercial development of the space frontier, and am looking forward to the possibility of going into space,” Brin said in a statement released by Space Adventures.

Brin follows in the steps of both billionaire creator of Microsoft Office software, Charles Simonyi, who paid a relatively modest $25 million in April 2007 for a 10 day joyride to the international space station, and James T. Kirk, Captain of the USS Enterprise.

Google has also sponsored its own space research program, called Google Lunar X Prize, which gives $25 million to the winner of a competition to land an unmanned craft on the moon.

According to Google's website, “There’s nothing we love more than ambitious research with world-changing potential, and space exploration and research have long produced much of the scientific community’s most ambitious, even audacious work".

My God Bones, what have they done!

Linky Goodness, June 11

Posted: 11 Jun 2008 03:35 PM CDT

When it comes to Linky Goodness, sometimes I even amaze myself. (And a cookie goes to the first person who can give the “correct” comeback to that!)

The French are doing away with e-mail. And email. And even electronic mail. Instead, it’ll be called courriel. Which is actually pretty cool, since it’s from “courrier electronique” (’electronic mail’). (If you’re wondering “Can they do that?” the answer is yes. The French language has an academy, a governing body that decides what proper words, grammar and usage are. English doesn’t.)
Does Google Stock Screener do it for you, or will you stick with Yahoo Finance?
And in other debates, Should bloggers be considered members of the “press”?
Overstock et al. have abandoned them, but Amazon’s not alone in fighting the good fight—the IAB Strikes Back At Empire State (New York. But isn’t her headline just the best?)

And the race for the cookie begins . . . NOW!

Pilgrim’s Partners: SponsoredReviews.com - Bloggers earn cash, Advertisers build buzz!

Icahn v. Yahoo, Round Kabillion

Posted: 11 Jun 2008 03:15 PM CDT

Some couples just never seem to tire of bickering. Their constant squabbles make small children look mature. Because I know you haven’t had enough of this drama lately, this is another one of those stories.

So, to get us all up to speed: prominent Yahoo shareholder Carl Icahn proposed a proxy board, probably to oust Jerry Yang and take a Microsoft deal. He says Yahoo’s employee severance plan (which would be triggered by a takeover or merger) is a poison pill. Yahoo says their severance plan is to protect and reassure employees and that Icahn has no credible plan for Yahoo. Simple enough, right?

In the latest round of fighting, we continue with the he-said, they-said over the employee severance plan. In letters to Yahoo, Carl Icahn has not only called the plan a poison pill but his actions have also gotten the shareholders who were already suing Yahoo to believe and file suit against the plan. Also, Icahn indicated that it was designed to prevent a merger with Microsoft with its $2.4 billion price tag—and that Yahoo’s own consultants called the plan “nuts.”

Yahoo fires back in an SEC filing (hopefully seeing the futility of further correspondence with Icahn) of a Q&A on the employee severance plan (emphasis added, via):

Mr. Icahn says this Plan costs $2.4 billion. Is that what it actually costs?
No. . . . Mr. Icahn quotes the $2.4 billion estimate, taken out of context, from a complaint filed in litigation against the company. This number is necessarily based on a number of assumptions, including the assumption that all of Yahoo!’s employees are terminated without Cause or leave for Good Reason following a Change in Control. . . .

Did Yahoo!'s compensation consultant say that the Plan is “nuts”?

No. . . . Timothy J. Sparks, the president of Compensia, Yahoo!’s compensation consultant firm, explained in a sworn deposition that he used the word “nuts” to describe his opinion of using the assumption that 100 percent of Yahoo!’s employees would actually receive the severance benefits under the Plan to determine cost estimates. Mr. Sparks made clear in his deposition that his remark did not relate to the design or cost of the Plan.

So although Icahn said that the compensation consultant called the plan “nuts,” what the man really said was that Carl Icahn’s interpretation of the plan was “nuts.” That’s turning your opponent’s argument against him.

Icahn insists that the plan be rescinded, but according to Yahoo, the plan cannot be changed within 30 days of any action toward “a Change in Control,” which is clearly what Icahn is angling for.

Best of all, though, is Henry Blodget’s insightful point: Icahn hates the employee severance plan because it would be triggered if his proxy bid succeeds. A “Change in Control” triggers the employee severance plan whether it’s Microsoft or Icahn taking over.

I also agree with his assessment of the situation:

Carl Icahn has no real plan for Yahoo other than selling to Microsoft

This weak negotiating position would likely lead to a takeout in the high-$20s, if that.

So much for that $34.375/share price tag. It does seem painfully obvious that this kind of fighting and obvious display of weakness can only harm Yahoo’s bargaining position, no matter who ultimately gains control of the board.

The bottom line? Yahoo’s once again stuck in an untenable position. Do you see a way out for them?

Pilgrim’s Partners: Is a blogger attacking your company without you knowing? Monitor your online reputation with Andy Beal’s Trackur–try it for free!

Overstock.com Adds Real Estate Search

Posted: 11 Jun 2008 02:20 PM CDT

Real estate is on my mind - I could easily do a linky goodness edition on the theme today.

Overstock.com Inc. is getting into real estate search (realestate.overstock.com) for bargain hunters who are already on their site to get overstock items. So now you can not only find the house, but you can buy the sheets, silverware, and curtains for it. You can also get a car for the driveway!

Overstock has more than 3 million classified, foreclosure, and auction listings. They have some fun with the site and their branding. I think this is a good example to many sites that are overly busy, complicated, or boring (no fun or branding). I’m a fan of sites that keep search simple from their home pages (be it online dating sites, social networks, or other similar sites).

They have an “O-Hot Value” logo next to the best deals. To come up with the information, they rank each home’s value relative to others in its neighborhood. The site will automatically show auction, distressed and foreclosed properties first.

But peel away the idea and the idea is not as compelling (see MSN’s blog post). The site is an aggregate of listings of various real estate sites and the search isn’t top notch. The sole purpose seems to be make money on advertising.

Maybe you’d be better off studying up on this instead.

Few Homebuyers Say the Internet Influenced their Purchase

Posted: 11 Jun 2008 01:01 PM CDT

Just what we want to hear - bad news about the housing market, but this time online. Turns out online searches didn’t have as significant impact on homebuying or renting decisions as we may have hoped. That doesn’t necessarily mean real estate sites should pull back their budgets though.

The Pew Internet & American Life Project Survey, September 2007 found that buyers even more than renters used the Internet most to search for real estate (links to a PDF summary of the study). They surveyed 2,400 adults about how they use the internet to research homes or apartments.

When taken as a whole, just 11% said information they found online had a major impact on their buying decision. This caused a bit of an outcry in the industry. Of the people who did research their purchase online, 23% said what they found had a major impact on their purchasing decision. Most agreed that their online research also saved them money and time.

I don’t take this to be all bad news. The study doesn’t address the buying decisions of this group, but in general people who go online have higher incomes than average. Also people are more likely to use the Internet to narrow their search. Then they take the search offline and actually view the homes or apartments to make the final decision. In other words, the Internet is more a lead generation tool than a buying tool.

According to the survey, of those who used the Internet in their housing search:

57 percent said the online info reduced the number of places they looked at
29 percent said such info helped them save money on their house or apartment
23 percent said the Internet had a major impact on their housing decision
42 percent said it had no impact at all

Here’s the information people most use online. Half or more used virtual tours, researched communities, or visited real estate sites:

I’ve been following the real estate industry in both my job and in regular life. During the day I work with clients, including real estate pros, on their search engine optimization. I follow mostly sour news about the housing market. And I recently hired a Realtor to help me sell my condo.

The good news is my condo is under contract in less than two weeks (so I’m feeling particularly optimistic after dreading a possible 6-9 month wait). And a guest post on Marketing Pilgrim gave me some new ideas for my clients - including introducing me to a social network for real estate. Thank you Joe Hall.

Next up, Hitwise data on specific real estate sites and brands people are visiting online.