Searchfeed.com is one of a large group of so-called
“second tier” PPC (Pay-Per-Click) search advertising networks – others include Kanoodle, InfoSeek, and
Looksmart. SearchEngineWatch lists some more on this page (nb: it’s
3 years old, but I couldn’t find a more up-to-date list). The first tier services are
Google AdWords and Overture – in which Google is a clear leader.
Searchfeed has just announced its latest Network search figures, which claim an
increase in total searches from 2 billion per month in December 2005 to 6 billion
searches per month in November 2006. The company noted (in an email I received) that this
is in line with general online advertising trends:
“This increase mirrors overall 2006 industry growth as U.S. Internet advertising
revenues reached a record $4.2 billion in the third quarter of 2006, representing a 35%
increase over the $3.1 billion figure posted for the third quarter of 2005.”
The growth path of Searchfeed – and other second tier search advertising networks – is
to provide web publishers with co-branded search solutions. In other words, second tier
search engines have to somehow convince web publishers NOT to use Google Adsense or
Overture – or at least pick them to run ads alongside Google or Overture. At the same
time second tier networks must entice advertisers on board with their Pay-Per-Click
solutions (also known as CPC – Cost-Per-Click).
However there is ongoing concern with click fraud in PPC advertising. As the website Search Engine Roundtable reported back in June, click
fraud is an issue that particularly dogs the second tier players:
“There is a thread on SEW Forums about click fraud and second tier PPC companies that
has been going on for well over a year now. The creator of the thread, posts some data in
regards to the companies whose traffic is rampant with click fraud. The rest of the
thread follows with people giving input on the data and their own experience. The result:
People hate second tier search engines. They simply don’t trust them to not fraud them
out of their money.”
[ref the forum
thread]
It also is a question that Google and Yahoo/Overture find themselves addressing on a
regular basis – how can advertisers be sure click fraud isn’t corrupting their PPC
results? Both big companies have specialist teams that tackle click fraud and they
generally make all the right noises in public to assuage concern about click fraud.
But
stories continue to emerge about
click fraud – and the second tier networks are particularly vulnerable, as it is such a
competitive market. It’s likely that a few bad second tier apples are engaging in click fraud
in order to get ahead, which of course reflects badly on the others and PPC as a whole.
I guess the true question here is: when will we see some innovative CPM or CPA search
advertising networks? That would be the best way to move beyond PPC click fraud. At the Web 2.0
Summit we saw an interesting company doing CPA called Turn, which looks promising. What other
networks do you see tackling CPA and/or CPM solutions, that might be worth R/WW looking
into?
