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Tuesday, May 24, 2005

MSN Paid Search Solution to Embrace the Black Box Approach?

(Hat-tip to Andy Beal)

It sounds like MSN Adcenter will toss factors like user interest (CTR) broken down by target demographic into the mix of ranking factors for paid search ads.

So it will be "more like Google's than Yahoo's" solution, but taking the complexity an additional step forward.

This will make it difficult for the advertiser to fully control their ad delivery or fully understand why an ad is placed in a certain spot (similar to Google's black box algo approach).

Two implications of this: (1) your head will hurt, so you'll hire me, and my head will hurt -- your pain is my pain; (2) it makes very little sense to dabble with the proprietary analytics solutions of a particular analytics vendor, given the importance of having impartial parties assess your campaign results. Third-party analytics vendors are going to be around for a long time, no matter how much sophisticated product the traffic vendors develop under their own umbrellae.

Posted by Andrew Goodman




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