360i Newsletter

By the numbers


  • Share of Internet Yellow Pages searches: Yahoo sites – 23.9%, Verizon SuperPages – 20.1%, Google sites – 12.5%
  • (comScore, October 2006)
  • Percentage of time-shifted broadcast viewing in homes with digital video recorders: 40%:
  • (Nielsen Media Research, Ad Age, December 2006)
  • US online advertising’s share of total ad spending for 2007: 6.4%
  • (eMarketer, September 2006)
  • Hollywood studios’ online advertising’s share of total ad spending for 2007: 5%
  • (eMarketer, based on MPAA benchmarks, October 2006)
  • Hours spent by users in virtual world Second Life in January 2006: 2.4 million
  • (Linden Labs, December 2006)
  • Hours spent by users in virtual world Second Life in October 2006: 7.5 million
  • (Linden Labs, December 2006)
Vol. 1 No. 4 Winter 2007

Google recently launched its Custom Search Engine (CSE) as part of its Google Co-Op project. With the CSE, Google allows publishers to specify or prioritize sites to include in searches which are initiated from a search box on publishers’ sites. If the publisher wants, other users can contribute to defining its CSE’s search results.
Should publishers embrace it? Here are some pros and cons of Google’s CSE:
Pro: The G-Lo Effect. There’s a formula that keeps reasserting itself: add Google’s brand name to anything else, and anything else looks better for it. It’s a new twist on the classic halo effect. Add Google to the transaction process, and Google Checkout increases conversion rates. Add Google to a 3D atlas, and suddenly there are millions more budding cartographers. Add a Google-branded custom search bar to your site, and usage of your site’s search box keeps growing. That’s one of the promises, at least.

Con: A Google search box in the wrong place can serve as a distraction. For instance, a retailer would not want a Google CSE on its main page, since the goal is for consumers to make a transaction on their site, not treat the retailer as a portal. There is one way retailers can use CSEs: if a retailer has a microsite, blog, or other online touchpoint that serves as an informational resource for consumers, a CSE could be a welcome addition.
Pro: The CSE is the new and improved version of vertical search. A publisher that uses one is basically developing its own vertical search engine.
Con: Paid search targeting could suffer. The focus of the CSE results is really on the natural results, not the paid. That’s because the natural results become more relevant, while nothing changes with the advertising. For instance, a search for “laptop” in the CSE on Macworld.com brings up search results predominantly related to Macs and iBooks, while the results in Google are all over the map. Yet the ads displayed for the Macworld CSE search are the same as the top ads from the Google search. Given that this includes advertisers only or largely selling PCs, the ads don’t provide the same value and even take away from the value of the CSE search.

Pro: There are already directories of CSEs at Lurpo.com and CustomSearchGuide.com (thanks to Google Blogoscoped for the links). Search functionality with fan pages must be great, right?
Con: There are also fan sites for Paris Hilton.
If publishers embrace CSEs, then it could decentralize the search experience for consumers, turn CSE publishers into search engines, and create new targeting opportunities for advertisers (e.g., targeting readers of Publisher X who search for Query Y). This future, if it is ever to exist, will be some years away. Should it ever happen, Google might not have come up with the idea, but will be able to take credit for popularizing it. Innovation isn’t everything, after all.

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