CUIL NOT SO COOL

The debut of “the world’s largest search engine”, Cuil, (pronounced COOL) is perhaps the biggest Ho Hum of the year.

Boasting three times the number of documents Google searches, I decided to review this bold new search engine to see how its algorithms perform.

On a scale of 1-10, it peaks at about a three. A search for the engine itself (Cuil) generates 721,578 results (after a 15 second response time)…. Not one result on the first page made reference to the search engine! Search for the engine on Google and it generates 2,030,000 results in one quarter of a second, chock full of information on the engine. An embarrassment for Cuil at the very least.

Round two … I searched for my own self. Over the top results numbered 655,971 with a confusing display of irrelevant topics on Cuil …. including my obituary!!!! Google’s results returned a respectable 1,290 listings, all relevant.

The display order for Cuil results read left to right, up or down. It’s not easy on the eye and takes a bit more time to scan than do Google results.

While I am no fan of Google’s over eagerness to control the world’s media inventory and relegate agencies to creative bull pens, I do give them credit for developing useful applications that simply work.

Cuil's founders, Anna Patterson Russell Power and Louis Monier are former Google employees, while Tom Costello has worked for IBM and others. Investors and board members that can kiss their investments farewell include Madrone Capital, Greylock Partners, and Tugboat Ventures. Remember folks ….YAHOO! bowed to Google for search. Cuil is one tugboat that should raise the white flag before it begins to take on water.

IS GOOGLE CIRCLING?

Is Google courting Donovan Data Systems?

The scenario is very likely given a chain of events going back to April 2007 when Google announced the acquisition of DoubleClick for $3.1 billion.

"Google is the absolute perfect partner for us," said David Rosenblatt, Chief Executive Officer of DoubleClick. "Combining DoubleClick's cutting edge digital solutions for both media buyers and sellers with Google's scale and innovative resources will bring tremendous value to our clients."

Early in 2008, one of Donovan Data’s program managers who had been with the company since 1993, quietly made a move to DoubleClick.

Just last week, DoubleClick announced a new proposal exchange platform built upon application agnostic standards, which will ultimately allow for broader integration with other advertising technology solutions.

Google forked over 20 times the estimated revenue for DoubleClick … it would not be a stretch for the giant to similarly overpay for Donovan Data in its effort to grab a company whose lion’s share of the off-line ad agency market hovers in the 75% plus range. Add into the equation Michael Donovan’s age (66), and an exit strategy can’t be too far off base.

Is Donovan Data the missing puzzle piece for Google and off-line media?

This according to Mark Howe, Google UK, just about a year ago …. "If we can build tools to link information from Donovan Data Systems and plug into other systems to measure the effectiveness of online, then that is the Holy Grail. It won’t happen this year, but that is the Holy Grail."

If not now, when?

NEWSPAPERS' TIGHTENING NOOSE

Palm Beach Newspapers Inc is owned by privately held Cox Enterprises Inc. just announced 300 job cuts across its publishing ventures.

The company is the latest among several U.S. newspaper publishers to announce job cuts for similar reasons. McClatchy Co which publishes the Miami Herald said earlier this month it would cut about 1,400 jobs, or 10 percent of its work force.

Gannett Co Inc., Tribune Co., New York Times Co. and the Washington Post have also announced layoffs and buyouts. The fallout for the Tribune company today saw the resignation of the L.A. Times publisher, David Hiller, as well as the Chicago Tribune’s editor, Ann Marie Lipinski.

Update 7/15/08 -- Announced today -- Atlanta Journal Constitution cuts 200 jobs, the Wall Street Journal lays off 50, the Oregonian closes three metro bureaus, USA Today June ad sales drop 27%

Carrying a large debt, the papers are forced to cut back on editorial staffers and revamp (shorten) its stories and eliminate sections to service that debt.

The withering of the daily paper has been forecast for years as the Internet picks up on readership. Sadly, publishers and editors refusing to accept a shift in the way consumers consume news, stand fast in defiance of this new breed of consumer.

Newspapers won’t go away anytime soon, but they will live in a very different, scaled down environment, more closely tied to their Internet sisters. Many will see the Internet version of their papers assume the editorial lead.

Editorial integrity and in-depth reportage aside, falling on one’s sword proves little in the face of news ‘”on-demand” via the Internet. Embrace the change and help to manage the conversion so that the integrity of the written word remains intact.

A BLOODY SHAME !

Anheuser Busch has launched a version of a Chelada or Michelada, a popular Mexican alcoholic beverage of a genre known in Spanish as cerveza preparada (prepared beer). There are several variations. In some cases it is similar to a Bloody Mary but containing beer instead of vodka, although a less complicated concoction of Mexican beer with sauces and lime juice added is also referred to as a Michelada.

The drink dates back to the 1940s, when mixing beer with hot sauce or salsa became popular in Mexico. In recent years, the drink has begun to become popular in the United States, and now various ready-made mixes are marketed and sold to US consumers.

Enter Anheuser Busch, rolling out a 20 oz. concoction of beer and clamato juice with a touch of salt and lime. The taste is neither beer nor clamato juice … kinda like a weak Bloody Mary without the spices. Color is a bit off-putting – cloudy orange.

The beer may be targeted for a Spanish speaking market, as its packaging is in both Spanish and English. A-B, however, released the product nationally in January following “tremedous success” in California, Texas, Arizona, Colorado and Nebraska.

Scouring the web, this Bud’s not for you. Most postings for the product are thumbs down, although I believe we’ll find the beer (available in both regular and light versions) will do well in ethnic geo-pockets or perhaps as a novelty. As for me … I’ll add some hot sauce and use it as a marinade or wait till they mix a Bud with a Yoo-Hoo!

Cheers!

GOOGLE BETWEEN THE LINES

What’s behind Google’s curtain?
The quote that follows comes from Google.
Try reading between the lines. I’ll help a bit.

“Google primarily provides search and advertising services, which together aim to organize and monetize the world’s information. (Hey, isn’t advertising a form of consumer information? Yep …. And we’re gonna make a ton of money doing it.) In addition to its dominant search engine, (we are the God of Search) it offers a plethora of tools and platforms including its more popular products: Gmail, Maps. and YouTube. (If we don’t get you with search, we’ll get you while you’re e-mailing, looking for directions or viewing videos.) Most of its Web-based products are free because Google makes its money from highly integrated online advertising through its AdWords and AdSense platforms. (Ah-Ha! AdWords and AdSense are just the beginning! Long live Freenomics!) Google promotes the idea that advertising should be highly targeted and relevant to users thus providing them with a rich source of information.” (Google can do it better than your agency can!)

I admit that I am hooked into a number of Google’s applications. I am, however, not blinded by the obvious.

Google has encroached upon traditional media formats in an “effort” to streamline back-end performance for a better roi as well as provide the industry with financial management tools that will ease the back-office headaches.

I would not be at all surprised to find Google in discussions with Donovan Data Systems, the financial and production giant that caters to ad agencies as a next-step in their quest for dominance.

“Quidquid id est, timeo Danaos et dona ferentis."

GOOGLE: AD AGENCY FRENEMY OR FROE?

When does a technology company begin to look like an ad agency?

As Google released its AdPlanner at the ARF Conference today, ComScore steps up to the plate to defend its panel-based projections for website demographics.

Nothing new here. One can argue ad nausea the merits of either rating games and no one will win the battle. It’s a battle that deflects attention from the intent of the eight-hundred pound gorilla to step up its media game. Indeed, it’s not a battle for Google that sees its entry into the agency landscape as an all out, if not precipitously quiet, war.

If not for the vociferous suspicions of WPP Group CEO, Martin Sorrell, Google may well just win the war to “disintermediate” agencies in the ad game. Google’s “iterative” process to provoke change at the agency and client level comes as no surprise when they posture themselves as the agent of positive and efficient ROI.

While Google maintains its desire not to be in the agency business, nor displace and eventually replace media reps, what it desires and what will occur are two very different things.

Has Google been reaching out to the agencies? No, not really. Calls to Google (yes I had to reach out to them) were politely returned and meetings held. I concluded that they were ill-equipped to sell through at the agency level, lacking integration with client objectives and overall marketing goals.

Frankly, they don’t quite “get it” . . . . yet.

As for Sorrell . . . .”the greater the doubt, the greater the enlightenment”.

BET ON MEL

Yesterday’s drop of 12% for Sirius stock and a 17% drop for XM’s stock follows a long standing FCC approval process that has yet to be resolved. The drop was sparked by the Goldman Sachs Group, downgrading both companies’ price targets to $1.75 for Sirius and $6.50 for XM. Further exacerbating the damage, Goldman Sachs suggested a poor outlook for satellite radio pointing to a competitive landscape.

That the merger approval will occur is highly likely and is reflected in the current stock price of both concerns. Nonetheless, final approval will almost certainly give both stocks a much needed lift.

As for the “competition” that Goldman Sachs believes will weigh heavily on the fortunes of the merged entity (viewed as the “new” 3G iPhone technologies and the increase in MP3 players) . . . . bunk!

While the younger demographics embrace and fuel the growth of audio and streaming video players, don’t bet the farm that XM-Sirius will not converge to expand its reach into this lucrative, first adapter market. It has already captured a significant share of the automotive market . . . .a more mature market that the younger group will eventually move into and a market that seamlessly incorporates its product and program offerings into the automobile at the manufacturing level. MP3 “add-ons” are still add-ons and the future receivers of the satellite companies will incorporate record and play-back technologies into their products (much like today’s DVD (TIVO) recorders).

Goldman Sachs and its analysts need to bet on long-term visions and stop reacting to misplaced short-term observations before attempting to play ping pong with “sirius” investor market positions.

They also likely did not consider the impact that Mel Karmazin, CEO of Sirius and a force to be reckoned with, will have on the future of these companies.

TO GOOGLE WITH LOVE

A very big small company puts Google in second place.

The Google of Russia is Yandex, and it is preparing for an IPO on Nasdaq in the fall with the hopes of raising $1.5 billion to $2 billion, as reported by Reuters. That would give the company a $5 billion valuation (115.5 Billion rubles).

Yandex was founded 15 years ago, and the last funding was only $5.3 million back in 2000, according to Quintra’s CEO Yakov Sadchikov (Quintura is a smaller search engine also based in Russia). If that is all the company raised, it will be a huge payday for investors ru-Net Holdings, Baring Vostok Capital Partners, and Tiger Technologies.

Yandex has a bigger search market share in Russia than Google. It's the biggest site in Russia overall.

In Europe it's the No. 3 search engine, outpacingYahoo and Microsoft . Globally, it's in the top ten.

Its revenues, though, are not that large, considering its ranking. In 2007 it reported only $167 million in revenues (3,857,700,000 rubles), which was a 130 percent increase from 2006. Founders Arkady Volozh and Ilya Segalovich still run the company.

PLEASE HOLD, AND HOLD, AND HOLD ....

“Your call is important to us. Please stay on the line until your call is no longer important to you.”

Outsourcing and Offshoring has been the focus of much controversy going back about fifteen years. While offshoring has obviously cost Americans many jobs, it also cut costs for manufacturers and service companies. But at what cost?

The primary interface between consumers and outsourcing occurs in the customer service (CRM) arena. The frustrations consumers feel when attempting to reach many customer service reps, for a variety of product or service needs, has been exacerbated by both outsourcing and automated response call centers.

We’ve all felt the need to toss our phones out the window when we find ourselves in a never ending phone loop for several minutes only to hear that dreaded “click” at the other end that forces us to start the process again … and again and again.

We’ve all felt the need to toss our phones out the window when we find ourselves in a never ending phone loop for several minutes only to hear that dreaded “click” at the other end that forces us to start the process again … and again and again.

Get the picture? Relief and revenge may be a few clicks away.

An ingenious site I was recently introduced to will provide shortcuts to move you out of the automated phone nightmare loop to a human on the other end.

GetHuman.com The GetHuman team, a group of consumer activists and speech technology wizards have set standards for customer service and declare “Humans First” as one of their core principles.

I encourage you to visit the site before you decide to make your call to a customer service group. It will save you time and aggravation.

Now that’s CRM !!

WHO'S THE THIEF?

Truth in advertising.

Our industry is under the impression that the FTC, as a governing and regulatory body, has been doing a fine job of policing advertisers under the following mandate:

Under the Federal Trade Commission Act:
· Advertising must be truthful and non-deceptive
· Advertisers must have evidence to back up their claims; and
· Advertisements cannot be unfair

The ads are ubiquitous.

LifeLock, the identity theft protection company guarantees your personal identity will be safe from identity theft, backed by a million dollar “guarantee”.

Richard Todd Davis, CEO of LifeLock Inc., was so confident in his company's ability to protect his identity that he publicly revealed his Social Security number: 457-55-5462.

But according to a new class-action lawsuit filed last week in Jackson County, West Virginia, LifeLock's identity theft protection services were so inept that Davis' personal information was stolen repeatedly.

"While LifeLock has only publicly acknowledged that Davis' identity was compromised on one occasion, there are more than 20 driver's licenses that have been fraudulently obtained [using his personal information]," states the suit, which now includes New Jersey and Maryland, states.

What penalties can be imposed against a company that runs a false or deceptive ad?

The penalties depend on the nature of the violation. The remedies that the FTC or the courts have imposed include:

· Cease and desist orders. Ordering companies to pay a fine of $11,000 per day per ad if the company violates the law in the future
· Civil penalties, consumer redress and other monetary remedies ranging from thousands of dollars to millions of dollars
· Corrective advertising, disclosures and other informational remedies

To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357).