Google Shocker: Paid Click Hits Wall

Google shares are getting hit early Tuesday after comScore’s report on a startlingly big decline in paid click growth. Google’s January paid click growth was flat on a year-over-year basis, down 7% from December and down 12% from the fourth quarter. UBS cut its earnings estimate and price target in response.The comScore data provide further evidence that Google is not recession proof and it looks like somebody got wind of this report as GOOG shares were notably weak Monday in an up tape. This decline probably represents an opportunity for believers in Google’s long-term story but the short-term pain isn’t likely over yet.

I heard Leo Laporte mention on Twit 132 that Google is currently experimenting with other types of ads on SERPs. Google recently starting using universal search, where photos and videos started to show up within normal search results. This was changing the behavior of users  causing them to become more accustom to photos and videos and in effect starting to ignore the text ads on these pages.

If I find the link to that original story I will post.

New Ebay Fee Structure

The new eBay fee structure went into effect on February 2oth 2007. And I can say that I am not happy with it. For the seller’s that sell items priced below $25. They will pay 8.75% when the item sells! And this is before PayPal fees. They do offer rebates to PowerSellers with high DSR (detailed seller ratings) which can be significant.  This confuses me because I thought eBay wanted to attract more casual buyers and sellers. The person who is selling just a few items per month is going to be squeezed out. eBay representatives have been stressing that this is on par with Amazon’s fee structure but products sell for higher prices on Amazon. eBay’s population are usually bargain hunters.

The feedback changes are also interesting. Buyer can only receive positive feedback. This is ok if buyer pays on time, but I have been doing eBay long enough to know that some buyers will try and take advantage of this. They know that your feedback is very important and they try to extort a few extra accessories from you. I hope eBay has some way to combat this.

Feedback Changes
The eBay Feedback system was designed to provide a simple, honest, accurate record of member experiences. Focusing on customer service includes doing everything we can to grow customer confidence in our sellers.

  • Buyers will only be able to receive positive Feedback.
  • Positive repeat customer Feedback will count (up to 1 Feedback from the same buyer per week.)
  • Feedback more than 12-months old won’t count towards your Feedback percentage.
  • When a buyer doesn’t respond to the Unpaid Item (UPI) process the negative or neutral Feedback they have left for that transaction will be removed.
  • When a member is suspended, all their negative and neutral Feedback will be removed.
  • Buyers must wait 3 days before leaving negative or neutral Feedback for sellers with an established track record, to encourage communication.
  • All Feedback must be left within 60 days (compared to 90 days today) of listing end to encourage timely Feedback and discourage abuse.
  • Buyers will be held more accountable when sellers report an unpaid item or commit other policy violations.

It’s official: HD DVD is dead, the format war over

Toshiba just made a statement saying, “It will no longer develop, manufacture and market HD DVD players and recorders.” This is the final nail in the coffin for HD DVD. My stomach turned a little because I really wanted HD DVD to win. Sony has already wrecked enough technology in my lifetime for me to trust them anymore. I think it call came down to money, who was more willing to give the studios more money. HD DVD or Blu-Ray

Another interesting thing to watch is if the end of the format war will finally get consumers to go out and purchase HD content, Most people are already very happy with DVD and just made the switch from VHS just few years ago. A number of tech savvy people I know who have Playstation 3 game consoles have never once tried the Blu-Ray player on the console, even though they have high definition television sets and incredible sound systems.

Now when the Blu-Ray Disks and Players are still not flyinh off the shelves, it can no longer be blamed on the format war. And with HD DVD gone, Sony no longer has the incentive the aggressively lower the prices of the players.

read more | digg story

Gift Card Disclaimer from Best Buy

I found this while reading Tuesday Morning Quarterback on ESPN.com

Reader Therissa Libby of Annapolis, Md., spent $100 at a Best Buy, receiving a $10 Best Buy gift card as part of a promotion. Here, she reports, is what the disclaimer on the back said:

“Gift card good toward future purchase. Qualifying purchases exclude cellular phones, HP ink and paper, notebooks and desktop computers, monitors, projectors, internal hard drives, Geek Squad in-home services, VOIP, broadband, desktop packages (packages include computer, monitor and printer), video game hardware, Apple products, Bose products, Digital SLR cameras, high-definition camcorders, JBL and Shure MP3 player accessories, Zune devices, satellite radio service, digital music service and download cards, Gift Cards, taxes, prior purchases, special order, clearance, demo and open-box items.”

Isn’t that pretty much anything in the store? I spend about an half hour thinking about this and looking on the Best Buy website and I still can’t find 5 items I would be able to buy with the gift card.