Google GPS: A Promising Channel for Advertisers

Written by Pablo Palatnik on November 29, 2007

If you’re wondering what or how Google will continue to come out with new marketing channels for advertisers, MOBILE is the target at the moment.

Now, from what I’ve read and understand from a short press release from Google, it is basically Google Maps for mobile.

“With Google’s new My Location technology, users who don’t have GPS-enabled mobile phones will now be able to take advantage of the added speed and convenience afforded by location information. The My Location technology also complements GPS-enabled devices, as it delivers a location estimate faster than GPS, provides coverage inside buildings (where GPS signals can be unreliable), and doesn’t drain phone batteries as quickly as GPS. Whether users are trying to locate a restaurant in an unfamiliar neighborhood, get directions to the nearest hotel while traveling, or just find a place to grab some coffee while shopping for the holidays, Google Maps for mobile with My Location can help them get what they need quickly and easily.”

So, why does Google spend all this money on technology for a GPS system? Google can care less about a GPS system, but with the amount of people that will download this free tool to their cell phone, the opportunity to make money of the advertising is incredible! Google doesn’t do or create anything without advertising in mind. Watch Google earth keep coming out with different versions and you’ll see ads there at some point, unless they really keep that one application for what it really is, which is just plain awesome.

The Google GPS can have a great impact on local advertisers for the obvious. It’s by far one of the best forms of local marketing…you have someone on their mobile while they are out trying to find something and BAM, they can find you right away while being near you.

So far, it’s just starting so its early to tell how it’ll play out with advertisers but it seems promising.

Google Going after Pay-Per-Posters

Written by Pablo Palatnik on November 20, 2007

While Google engages in PageRank warfare against its algorithmic enemies (sites that sell links,) the latest to see the wrath are pay-per-post publishers (maybe advertisers to…) Months ago (if I can find the post or on some guest post) I blogged about how the pay-per-post business model would be VERY hurt by Google’s move on going after link sellers. Is this actually a surprise to anyone?

The pay-per-post business model depends a lot on Google’s pagerank. Obviously, a post on a pagerank of 5 would cost a lot more than on a pagerank of 3 and so on.

Techcrunch reports, “IZEA (the new holding company for PayPerPost) CEO Ted Murphy is not surprisingly calling foul on the move, claiming that it’s part of some sort of censorship conspiracy by Google. Better still Murphy claims that it’s part of Google’s attempts to deny competition because PayPerPost is a “a very attractive alternative” to Adsense.

Murphy goes on to claim that TechCrunch should be punished because our occasional posts thanking sponsors (like this one) is nothing different to what PayPerPost bloggers do.”

Here is one thing I learned a long time ago…NEVER BASE YOUR BUSINESS -MODEL ON GOOGLE. Pay-Per-Post needs to have or should have a different pricing structure for bloggers maybe based on traffic to blog instead of pagerank…BUT here is thing. Many advertisers use bloggers as an SEO strategy.

I think we’ll see a change soon within pay-per-post and how it may change its business model regarding pagerank. If you want to advertise using a service like pay-per-post or reviewme, use it for branding and marketing purposes, not SEO, it might come back to haunt you.

A New Breed of Online Shopper – Social Shopping 101

Written by Pablo Palatnik on November 14, 2007

It’s about that time of year when you’re probably having your best sales to date since the holidays are around the corner and people are starting to shop as of now.

If you’re selling a product on your website, besides having quality pictures of the product itself and good content, what else could entice the user to make the purchase? PEER FEEDBACK. I’ve been meaning to blog about this for a while now until I just saw this research study by the e-tailing group which proves this very important aspect of shopping online.

Reviews from buyers are so important…buyers are sheep (for the most part) and that’s why trends become trends…people tend to follow other people if other people think its good or cool. Product reviews act as that for many online buyers.

“The study sought (1) to understand how online shoppers use reviews to make informed buying decisions, and (2) to explore consumers’ preferences and interests in “Social Navigation” - or the ability to narrow product selections based on reviews from like-minded people with similar interests.
Some 70% of all online shoppers said customer reviews and ratings on a retailer’s website were extremely or very important when they are selecting and purchasing products, followed by 62% citing a top-rated products list (as rated by customers):

Among the respondents, 65% were identified as Social Researchers - consumers who actively (always or most of the time) seek out and read customer reviews prior to making a purchase decision:

Social Researchers were found to engage in the use of reviews across all behavioral areas at a rate 20% higher than average online shoppers:

* 86% of Social Researchers find customer reviews extremely or very important, vs. 70% of all online shoppers.
* 76% of Social Researchers find “top rated product” lists to be extremely or very important, vs. 62% of all online shoppers.
* 64% of Social Researchers research products online more than half the time, no matter where they buy the product (store, web, catalog, etc.)

How online shoppers, particularly Social Researchers, perceive Social Navigation was also examined.

* Some 82% of Social Researchers (vs. 75% of all online shoppers) found reading reviews better than researching a product in-store with a knowledgeable sales associate.
* 76% of Social Researchers (vs. 69% of all online shoppers) are more likely to shop on a retailer’s website - vs. its competitor site - if it offers social navigation.
* 75% of Social Researches (vs. 64% of all online shoppers) found it extremely or very helpful to narrow product selection based on feedback from people like them (with similar interests).

If you are selling product on your website, I’d advise to start putting up some product reviews or ratings and test if it starts to convert better.