Internet advertising through the eyes of John Mayer 3:42 PM

Last night, Recording/Sandwich Artist (his words not mine) John Mayer attempted to describe internet advertising in 5 tweets.  And although humorous, he didn't do that bad:

Quick dissertation on the anatomy of "hate" in our decade: web sites get paid by advertisers based on how many site visits they get...

...how do you get as many clicks as possible? Shock them into clicking. Caps, exclamation points, anything hyper-sensitive.

then, keep them coming back by way of letting them comment. Someone who posts will check the site for replies: more clicks, more money.

Also, ask them their opinion and let them "vote." That always works. Why? Click on a poll, get transported to another page. Another click!

Hopefully, you're fighting, clicking, refreshing, gasping, clicking, hating, fighting, clicking... and they're taking home the ad money.   

Web Will Account for 15% of Total Ad Spend in 2010 6:47 AM

Political candidates often ask what percentage of their advertising budget should be allocated to the internet.  I have always been a believer in (generally) following the lead of consumer targeted advertising, but unfortunately political campaigns seem to always be a few years behind the curve.  Well, here's your warning for 2010:

From ClickZ

Web Will Account for 15 Percent of Total Ad Spend in 2010

Despite continued sluggishness in the display ad market, Internet advertising will increase its share of overall ad spending to 15 percent next year, for a total of almost $65 billion globally, according to a new forecast from GroupM.

Unlike earlier this decade, when spending on display ads drove much of the growth in the digital market, increases today are being driven by investments in search and mobile advertising, according to the forecast, which was released Monday.

Spending on search will rise by 12 percent globally in 2010 for a total of $25 billion, the report said, while global display ad spending will increase just 5 percent. In the U.S., display ad spending will decrease slightly, from 35 percent of the total to 34 percent. Display ads accounted for 39 percent of total US ad spending in 2006.

Click here for the entire story

If Sayfie was Google, Bing or Yahoo! 5:51 AM

Earlier this week, two Florida legislators announced that they would be taking up legislation to update Florida's laws dealing with pay-per-click online advertising after a complaint was filed to the Florida Elections Commission regarding a local candidate's use of Google and Facebook ads.

Justin Sayfie, Principal of NetPower Strategy (of which I am an Associate) is suggesting another possible solution in an interview with ClickZ magazine:

"If I were Google, if I were Bing, if I were MSN or Yahoo, I would think about whether there's a technical solution I can provide to candidates in Florida, because now effectively there's a ban on anything that can be seen as [online] political advertising."

The idea that Google, Facebook and other pay-per-click advertising models such as Bing and Yahoo! could take steps themselves to make sure that political candidates are able to advertise on their sites while still complying with election law is a fascinating one. If it happens, it will serve as proof of the significant increase in spending by political campaigns on pay-per-click online advertising and the growing importance of these campaigns to pay-per-click advertising model sites.

To keep up with this developing story in Florida, I have added a florida pay-per-click ad debacle tag to all of my blog posts focused on this specific subject.

Florida Legislature to take up Google AdWords Legislation 2:25 PM

Huge development today in the ongoing saga over use of Google and Facebook advertising for political campaigns in Florida. State Representative Eric Eisnaugle (R) and State Senator Ted Deutch (D) announced today that they will be introducing legislation "to help match our laws with the next generation of communications." This announcement comes in wake of a complaint filed to the Florida Elections Commission over St. Petersburg Mayor candidate Scott Wagman's use of Google and Facebook advertising. Here's more on the announcement, as reported by the Tampa Tribune:

State Rep. Eric Eisnaugle, R-Orlando, plans to draft and file legislation to solve the problem of Internet “link ads” that led to a state Elections Commission investigation in the St. Petersburg mayor’s race.

The state’s laws “should not be archaic,” Eisnaugle said in a news release.

“Florida’s election laws were written well before the internet became a part of daily life for Floridians and do not recognize the important dynamic of online communications. I plan on bringing together stakeholders in the technology community and state elections officials to help match our laws with the next generation of communications.”

The issue arose with Elections Commission charges against mayoral candidate Scott Wagman’s link ads on Google, Facebook and other web sites.

As I mentioned last week, this case has the potential to significantly impact candidates' ability to advertise on Google, Facebook and other pay-per-click advertising platforms. The fact that the Legislature is taking up this issue so quickly is a good sign as this may be the quickest way to remedy this issue and set a strong precedent for other states dealing with similar issues. I will be watching this story very closely as it continues to unfold, so stay tuned.

Florida: Where Google ads for political campaigns go to die? 8:03 AM

When I began my vacation two weeks ago, this was a blip on the radar screen of local political blogs here in Florida. When I returned to my desk yesterday, I found that it had exploded into a national story which has thrust Florida to the forefront of a growing debate over the legality of pay-per-click advertising by political campaigns on Google and Facebook. ClickZ and TechPresident have both focused on the story as has the Wall Street Journal:

An online twist in a hotly contested race for mayor of St. Petersburg, Fla., could signal trouble for local politicians advertising on popular Web sites like Google, Facebook and Twitter.

The Florida Elections Commission has decided a mayoral candidate's ads on Google and Facebook appear to violate the state's election law because they don't include a disclaimer that indicates who bought them. Many other states, including Texas, Alaska, Connecticut and Ohio, also require similar disclaimers.

The candidate's campaign, however, argues that the messages in question aren't technically ads, but rather links to ads, and that it doesn't pay for them unless a Web user clicks on them. When that happens, it says, the person is taken to a Web site that provides the appropriate disclosures.

...analysts say online ads could become a more crucial part of political campaigns, and the Florida dispute is likely to set a precedent for how state and local politicians advertise on the Web.

Click here to read the entire piece from the Wall Street Journal

While I am not a lawyer and won't comment on the legal issues surrounding this case, this is something I believe all political communications professionals should keep their eye on as the implications on online advertising for political campaigns are potentially significant. Stay tuned for more...

Here's a local news report on this story with interviews with the Wagman campaign:

The Power of Passed Links 7:06 AM

Fred Wilson, a member of the Twitter Board of Directors, recently gave this short presentation at the 140 Characters Conference where he makes the case that because Twitter and Facebook drive traffic based on human recommendations, these services will ultimately surpass Google which does not have the human touch of link passing. Check out this very insightful ten minute video:

Mobile Google AdSense 3:24 PM

Today, Google announced beta testing of AdSense for Mobile Applications. This is a really interesting step in the direction of further monetization of mobile websites. Mobile devices played a critical role in the Obama campaign's success in 2008 and with the rapid growth of mobile web users and technology this new Google advertising platform will undoubtedly play a critical role in 2010. Here is an excerpt from Google's announcement:

We want to contribute to the growth of these mobile applications, which is why we're happy to announce our beta launch of AdSense for Mobile Applications. After all, advertisers are looking for ways to reach potential customers when they are engaged with mobile content, and application developers are looking for ways to show the best ads to their users. We have already had a successful trial of this service with a small number of partners, and are excited that we can now offer this solution to a broader group.

Here is a very short, yet interesting video from Howard Steinberg, Director of Business Development at Urbanspoon, discussing their experience with Mobile AdSense.

Alex Sink's Interesting Ad 9:42 PM

Today I did a quick Google search for the major candidates for state-wide offices in Florida in 2010 to see which candidates were running ads through Google AdWords. Interestingly, the only candidate running ads on a broad keyword search for their name was Florida Democrat CFO Alex Sink who is running what looks to be a close race for Governor against Republican Attorney General Bill McCollum. More interesting is that Sink is running her ads on the search word "Kendrick Meek" - the Democratic Congressman likely to be the party's nominee for the U.S. Senate contest.

While the race for the Republican nomination for U.S. Senate is far from over, popular Florida Governor Charlie Crist remains well ahead in every poll conducted to this point and is expected to have a significant financial edge over former Florida House Speaker, Marco Rubio. Rumors have circulated for months that within Florida Democratic circles, party fundraisers are being urged to give to Alex Sink's campaign for Governor over Kendrick Meek's run for Senate as Sink's campaign is viewed as a safer-bet for Florida Democrats. Perhaps this Google AdWords campaign is a sign of confirmation of these rumors.

At a fundraiser in Tallahassee tonight, the Miami Herald reports that Sink claims her campaign is, "going to need something like 40,000 contributions from all over Florida." Undoubtedly, one way to bring in that many donations is through targeted online advertising such as the above ad. The fact that Sink is the only state-wide candidate currently advertising on a keyword for a fellow party-member in another race may shed some light on Florida Democrats' strategy for 2010.

Tweets from Google AdWords Seminar 8:43 AM

This week, I live tweeted from the Google AdWords Seminar I attended in Orlando. Here are some of the highlights:

The Algorithm 3:43 PM

Tomorrow, I am heading to Orlando for a Google AdWords Seminar. I have used AdWords for nearly a year now, but I knew I needed to refresh myself on some of the basics. In preparation, I watch this video by Google's Chief Economist, Hal Varian who explains the Google AdWords auction algorithm with incredible simplicity. This is a must watch for any political communications or corporate communications professional currently advertising or interested in advertising on Google.