Marketing Pilgrim's "Display Advertising" Channel

Marketing Pilgrim's Display Advertising Channel is sponsored by AdClarity. AdClarity helps online media buyers and planners uncover their competitors’ media plans, campaigns, creatives, best performing publishers, mediators and traffic sources.

Mozilla Gets 85% of Revenue from Google

Towards the end of Mozilla’s 2006 Financial statements in the section called “Concentration of Risk” it reads:

“Mozilla has a contract with a search engine provider for royalties. The contract originally expired in November 2006 but was renewed for two years and expires in November 2008. Approximately 85% of Mozilla’s revenue for 2006 was derived from this contract.”

That one source responsible for almost all their revenue was Google. Now if I could choose a partnership to rely on, Google would be at the top of my list. But there are threats – like a plugin called Adblock Plus for Firefox that blocks the very ads that generate their income.

Halloween Costume Search Stats

Here’s a fun story for SEO on a very timely subject – Halloween costumes. As a fan of both Halloween and online marketing I’m curious what is selling. First, the most popular search, according to Hitwise data is “hanna montana costume.” (here is the Hitwise full download with all the data).

Other popular Halloween Costume searches include:
Halo 3′s Master Chief, pirates, Wonder Woman, Little Red Riding Hood, and Tinkerbell. What else are people looking for? Ideas on how to make a cheap or for a sexy costume.

People often searched on these words describing the costumes: sexy, funny, homemade and cool. The phrase “cheap halloween costume ideas” increased 305 percent this year, and the term “adult halloween costume” increased 336 percent.

Facebook Feeding Frenzy

More Investor Cash for Facebook

Yesterday we learned that Microsoft bought 1.6% of Facebook for $240 Million. Today there is another large investment – it’s been rumored that Facebook got an additional $500 million from two New York hedge funds. Part of that deal is that Microsoft will do more advertising on the site. Facebook has a jaw-dropping $15 billion valuation. This is incredible. Together the new investments are for about the percentage that Microsoft owns.

Elizabeth Corcoran from Forbes Magazine broke the story yesterday and the news spread faster than the California wildfires (which, thank goodness, are slowing).

Facebook was seeking $750 million from the get-go and are at $740 and have only given up about 5% of the company. And we don’t know their revenue but it’s based on advertising. Estimates put their revenue at $100 million for last year.

Facebook Sets the Date (for New Ads)

No, Facebook isn’t announcing the date for its impending nuptials, but it’s sent out engraved invitations (literally) for an event next month in New York, as AdAge writes:

The invitation, sent to advertisers and agencies in New York, arrived carved onto a Lucite brick:

“You are invited to a discussion with Mark Zuckerberg and the Facebook executive team as we unveil a new way of advertising online.”

AdAge speculates that this could be the unveiling of the meaning of a term first used and trademarked by Facebook last month, “SocialAds”:

described as “advertising and information distribution services, namely, providing advertising space via the global computer network [and] promoting the goods and services of others over the internet.”

MySpace Dominates in the US

Datamonitor predicts that social networking sites will level off around the world in the year 2012. They also predict that the plateau will hit even sooner in the US. In the meantime, global active memberships in social networking sites are growing. They’re expected to reach 230 million at the end of 2007 (this includes multiple memberships by one person).The money is good and growing.

For example, my friend’s Facebook App that took two weeks to build recently sold for $25k. And marketers who are savvy are getting a lot of press for their social networking presence. There is a lot of money and creativity being exchanged. “Revenues from social-networking services should reach $965 million, growing to $2.4 billion by 2012, writes MarketingCharts.”

Google Launches New Keyword Analysis Tools

If you’re running Google Adwords advertising you need to be concerned with the “quality score” of your ads. If your ads score low they could be deactivated and the only way to run the ads again is to pay more. However, if your ads have a high quality score you’ll pay less per click and your ads will be promoted higher on the list of ads. Google uses the quality score to set minimum bids on specific keywords.

Since your quality score has such an impact on what you pay for advertising, advertisers wanted more information about how it applies to their keywords. Google announced today that they will do this with their new Keyword Analysis page.

Radiohead Rocks the Record Industry

I wrote about British rock band Radiohead’s experiment to get rid of their record label and sell direct their music direct. The results are coming in and so far Radiohead has sold 1.2 million albums in just a week. They let their fans determine what to pay. I guess it’s sort of like Priceline for music. They settled on $8 (I can’t seem to find how exactly they arrived at this number) and that has probably made the band about $10 million already. Also amazing is that the number of albums sold in the first week is higher than first-week sales of its three previous albums combined.

As the New York Times reports, Radiohead is navigating some creative deals – including one that will let an indie label license the album for a period of time. Radiohead would retain ownership.