Google Goes Under the Sea...
On the eve of the release of their 2004 Report, Google acquired the web analytics firm Urchin. Urchin is a great company, and is run by a great guy, with whom I built earthquake-resistant towns at the Yahoo! Party @ SES San Jose.
But why did Google buy it?
Some theories:
1. Andy Beal from SearchEngineLowdown thinks Google wants to track to conversions to set up a CPA program. I.E. You only pay when you convert instead of per click.
I don't think so. First of all, Google already has conversion tracking in place. And they recently expanded it to include methods other than Adwords. If they wanted to run a CPA program, they easily could have done it without spending a reported $30 mil on Urchin.
Second, I don't think Google would ever do a CPA program, as "rival" search engine SNAP is doing. Google is so concentrated on relevancy, and a CPA model promotes bidding on non-relevant terms, as you only have to pay for conversions, not clicks.
And how would it work Google's current Ad Rank (CTR*CPC) model? Right now SNAP drops you from the CPA model if your conversion rate is too low, but nothing happens if your CTR is too low. CPA also promotes pre-qualification in adwords, which don't work so well now. I.E. you could bid on the term "windows" and sell storm-proofing how-to guides to the .0001% that was actually looking for them.
2. I think Google's plan is to become a marketing solution for small and medium-size businesses that are currently using Adwords through a third-party solution, agency or tool. Google always intended Adwords to be completely DIY, but didn't build enough management, tracking and optimization capabilities into Adwords. With Urchin, they can build a tool like Overture and Lycos have, and squeeze the tool and tracking SEMs and agencies out of the picture. Barry from SearchEngineWatch thinks I might be onto something. The tool/tracking-heavy SEMs must either be worried or restructuring right now.
3. Of course, Google might have bought Urchin just because the analytic's company has the worst Adwords ad I've ever seen. Ever:
urchin
you will love Urchin
- give it a try
www.urchin.com/
But why did Google buy it?
Some theories:
1. Andy Beal from SearchEngineLowdown thinks Google wants to track to conversions to set up a CPA program. I.E. You only pay when you convert instead of per click.
I don't think so. First of all, Google already has conversion tracking in place. And they recently expanded it to include methods other than Adwords. If they wanted to run a CPA program, they easily could have done it without spending a reported $30 mil on Urchin.
Second, I don't think Google would ever do a CPA program, as "rival" search engine SNAP is doing. Google is so concentrated on relevancy, and a CPA model promotes bidding on non-relevant terms, as you only have to pay for conversions, not clicks.
And how would it work Google's current Ad Rank (CTR*CPC) model? Right now SNAP drops you from the CPA model if your conversion rate is too low, but nothing happens if your CTR is too low. CPA also promotes pre-qualification in adwords, which don't work so well now. I.E. you could bid on the term "windows" and sell storm-proofing how-to guides to the .0001% that was actually looking for them.
2. I think Google's plan is to become a marketing solution for small and medium-size businesses that are currently using Adwords through a third-party solution, agency or tool. Google always intended Adwords to be completely DIY, but didn't build enough management, tracking and optimization capabilities into Adwords. With Urchin, they can build a tool like Overture and Lycos have, and squeeze the tool and tracking SEMs and agencies out of the picture. Barry from SearchEngineWatch thinks I might be onto something. The tool/tracking-heavy SEMs must either be worried or restructuring right now.
3. Of course, Google might have bought Urchin just because the analytic's company has the worst Adwords ad I've ever seen. Ever:
urchin
you will love Urchin
- give it a try
www.urchin.com/
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1 Comments:
http://searchenginewatch.com/searchday/article.php/3494416
SEW has highlighted my theory. Still waiting for a comment from GoogleGuy...
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