WebProNews

Tag: search

  • iPhone 5 Features, Social Media Jobs & Dog Bites

    People are really hyped up for the iPhone 5. Rumors have been swirling for months, and users know what they want. A new infographic looks at what they do want, as well as who will actually be getting one. Then we have some other interesting social media and search-related stuff. And dog bite stats.

    View other daily infographic compilations here.

    PaidViewpoint looks at who wants an iPhone 5 and what they want from it:

    iPhone 5  

    Voltier Creative looks at the career implications of Social Media (via MediaBistro):

    careers and social media  

    LinkedIn looks at jobs and small businesses:

    LinkedIn

    This is more a graph than an infographic, but interesting nevertheless. Look at how Facebook is skyrocketing over everything else. This comes from Citigroup (via Peter Kafka):

    top sites  

    Google looks at what time of the day search queries come from what kinds of devices. This is for one day:

    search from devices

    Veracode looks at “when good Twitter accounts go bad”:

     

    CollegeAtHome looks at how to do everything you need from your computer:


    Created by: College At Home

    SocialCast looks at the state of the Intranet:

    Intranet  

    LiveScience, using info from the American Humane Association, looks at dog-bite incidents:

    Dog bites 

  • Facebook Timeline Parodied, UARS, Matt Cutts Q&A, Robots & Stuff That Will Just Blow Your Mind

    We have some very interesting videos for you today. I won’t give away too many spoilers. Just peruse them at your leisure.

    View other daily video round-ups here.

    First off, the stuff that will blow your mind. UC Berkeley scientists have found a way to use brain activity to recreate moving images. Just, wow:

    Google’s Matt Cutts did a live Q&A with webmeisters this week. The video can be conveniently viewed here:

    Facebook on how to use the new Open Graph:

    Open Graph Tutorial from Cat Lee on Vimeo.

    We share a lot of NMA’s videos here at WebProNews. This time, we interviewed them. This is the company that creates the Taiwanese animation videos of a lot of fun news stories:

    Here’s their latest video about the new Facebook changes:

    Stephen Colbert on the UARS satellite:

    Microsoft is putting video on the Bing homepage now:

    PopSci shares this video from BostonDynamics of the BigDog robot:

    WebProNews interviewed LinkedIn’s connection director about networking better using the social network:

    Google uploaded a pair of Google Apps Scripts videos: a tutorial webinar and a video about automating school processes:

    Another Google webinar on why and how to go mobile:

    Google talks about how it’s chaining the way it approaches working with developers:

    Conceptboard shows how it integrated Google+ Hangouts:

    “The Engineers’ Drinking Song” performed by The MIT Chorallaries:

  • True Blood, Long Distance Relationships & Page 1 Search Rankings

    One of the reasons we thought it would be nice to do a daily roundup of infographics is that it is a quick way to take in a lot of information in a very visual way. Doesn’t it make learning more fun?

    So, while we’ll certainly include the business stuff, we won’t be shy about dropping in some more fun stuff like vampire shows and breakfast cereal. You can still learn from them. But don’t worry, there’s plenty of business stuff too.

    This one from ScreenRant takes a deep look into the mythology of True Blood:

    True Blood

    A look at the evolution of technology and its impact on the long distance relationship from ROUNDS:

    long distance relationships

    Search Engine Journal provides a look at the evolution of making it on the first page in search results:

    Getting on page 1

    MTV points us to the birth of the breakfast cereal box:

    breakfast cereal boxes

    Visible Technologies looks at Pew Research info on how social media tracks your every move:

    social media tracking you 

    This one from CB Insights (via ReadWriteWeb) looks at problems in the Daily Deals industry:

    Daily Deals industry
     
    Experian Hitwise looks at if UK Internet usage was just 1 hour:

    UK Internet 

    DDB Paris and OpinionWay look at why users unlike brand pages on Facebook (via AllFacebook):

    Why people unlike facebook pages  

    Edelman looks at health around the globe (via Mashable):

    Health around the world 

    Progress Software looks at how businesses deal with change:

    How businesses deal with change  

  • Fear, Email, SEO, Video, Mobile and Working From Home

    There are a lot of videos hitting the web on any given day, so we’ve been curating a daily round-up of some of the most interesting ones we’ve come across. In a similar spirit, there have also been a lot of interesting infographics coming out lately, so we thought, why not take a similar approach to these.

    Here are some that are currently making the rounds.

    This one about email viewing habits comes from litmus:

    Email infographic

    AOL Jobs points to this one based on Harris Interactive Poll data about watching video at work:

    video at work  

    This one from WorkSimple analyzes the “work from home” phenomenon:

    work from home

    This one looks at how people share things using Bump:

    Bump info

    This one from Marketo looks at how marketers are embracing the mobile web:

    mobile web  

    This is more a chart than an infographic, but still interesting (from Silicon Alley Insider):

    Photos  

    Search Engine Journal posted this SEO Audit Checklist:

    SEO Audit

    And then there’s the fear:

    What do you fear?
     

  • Email is Still King of the Internet

    A new report out from Pew Internet says that based on a survey from May, search and email are the top two activities online adults engage in on the web. The number is 92% for both. 59% used search on a typical day. 61% use email on an average day, however.

    “Since the Pew Internet Project began measuring adults’ online activities in the last decade, these two behaviors have consistently ranked as the most popular,” says Kristen Purcell for Pew Internet. “Even as early as 2002, more than eight in ten online adults were using search engines, and more than nine in ten online adults were emailing.”

    Pew Internet survey

    “Email and search form the core of online communication and online information gathering, respectively,” says Purcell. “And they have done so for nearly a decade, even as new platforms, broadband and mobile devices continue to reshape the way Americans use the internet and web. Perhaps the most significant change over that time is that both activities have become more habitual. Today, roughly six in ten online adults engage in each of these activities on a typical day; in 2002, 49% of online adults used email each day, while just 29% used a search engine daily. ”

    One very interesting aspect of Pew’s email data is that the people using email most are the youngest demographic surveyed (18-29). This is all the more interesting, considering claims once made by Facebook that email is “probably going away” because of younger generations gravitating more towards texting and social media. Of course that was before Facebook itself began offering email addresses.

    Pew Internet Email data

    “Email is similar to search (and many other online activities) in that the youngest online adults, the college-educated, and those in the highest income categories are more likely than others to engage in the activity,” says Purcell. “These demographic differences are considerably more pronounced when one looks at email use on a typical day. Moreover, while overall email use is comparable across white, African-American and Hispanic online adults, internet use on any given day is not. White online adults are significantly more likely than both African-American and Hispanic online adults to be email users on a typical day (63% v. 48% v. 53%, respectively).”

    Social media is certainly growing as an online activity, though that growth has slowed tremendously over the last couple years, as you can see from the top graph. It’s still below buying products online, getting news online, and of course search and email.

    However, the lines are getting blurrier among some of these things. People are, for example, getting more of their news through social network sites. Facebook is combining email and social media messaging into one “social inbox”.

    It will also be interesting to see the impact Google+ has on Internet culture. While still in its very early days, it has been growing rather quickly, and the more people that use it, the more people will have access to Gmail, by simply having a Google account. How much they use it in relation to Google+ circles and streams remains to be seen.

    For now, however, it looks like email is still king of the hill when it comes to online communication. That says a lot about the value of effective email marketing.

  • Demand Media Earnings Released

    Demand Media Earnings Released

    Demand Media has released its earnings for the second quarter. This includes a 32% revenue increase to $79.5 million, compared with $60.4 million for the same quarter last year. It also includes loss from operations of $0.9 million compared with $1 million in the same quarter last year, and net loss of $2.4 million compared with a net loss of $1.9 million in Q210.

    The company’s cash flow from operations grew 76% to $16.8 million, from $9.6 million in the year-ago quarter. That’s all GAAP. Non-GAAP can be viewed in the release below.

    “We posted another strong quarter, driven by significant year-over-year growth in both our Content & Media and Registrar businesses as we continued to enhance our content library with new talent, video, and feature articles,” said CEO Richard Rosenblatt. “We plan to build on this momentum by expanding our brand advertising relationships and accelerating our content platform’s international and social media growth initiatives.”

    “Year-over-year growth in our content library, audience and brand advertising revenue, combined with very strong Registrar performance drove our Q2 results,” added President and CFO Charles Hilliard. “We generated strong cash flow from operations, ending the quarter with over $100 million in cash, and plan to continue to invest further in quality content and other growth opportunities in a financially disciplined manner.”

    When Demand Media released its earnings report for the first quarter, it also announced a 20% decline in search referrals largely due to Google’s Panda update. Since then, Google has continued to “iterate” upon the Panda update. Some have seen some positive upticks in search traffic in the meantime. DaniWeb reported a full recovery. HubPages is betting on subdomaining to at least keep the lower quality content from affecting the rankings of the higher quality content.

    With its Q1 report, Demand Media announced a major content quality clean-up effort for its eHow property, which would see the editing of some content and the deletion of other content.

    Not a whole lot was mentioned in the report with regards to all of the Panda stuff, though the company did announce a three-year renewal and expansion of its advertising partnership with Google.

    In the cautionary info section, the company does note: “Potential risks and uncertainties include, among others: changes in the methodologies of Internet search engines, including the recent algorithmic changes made by Google to its search results as well as possible future changes, and the impact such changes may have on page view growth and driving search related traffic to our owned and operated websites and the websites of our network customers; the inherent challenges of estimating the overall impact on page views and search driven traffic to our owned and operated websites based on the limited data available to us since the last algorithmic changes made by Google…”

    It will be interesting to see if the topic is discussed anymore in the company’s conference call, as it was last quarter.

    The company also slipped in an announcements that it acquired brand advertising firm IndieClick and social app RSS Graffiti.

    Here’s the Q2 release in its entirety:

    Demand Media Reports Second Quarter 2011 Financial Results

    • Revenue Increases 32% and Revenue ex-TAC1 Grows 34% Year-over-Year
    • Cash Flow from Operations up 76% Year-over-Year
    • Adjusted OIBDA1 Increases 44% Year-over-Year

    SANTA MONICA, Calif., Aug 09, 2011 (BUSINESS WIRE) —

    Demand Media, Inc. (NYSE: DMD), a leading content and social media company, today reported financial results for the quarter ended June 30, 2011.

     

    Q211 Financial Summary:

    GAAP

     

    • Revenue increased 32% to $79.5 million, compared with $60.4 million in Q210.
    • Loss from operations of $(0.9) million compared with a loss from operations of $(1.0) million in Q210.
    • Net loss of $(2.4) million compared with a net loss of $(1.9) million in Q210. Net loss per share of $(0.03) compared with $(0.75) in Q210.
    • Cash flow from operations grew 76% to $16.8 million, from $9.6 million in Q210.

     

    Non-GAAP1

     

    • Revenue ex-TAC increased 34% to $76.6 million, from $57.3 million in Q210.
    • Adjusted OIBDA grew 44% to $20.5 million, or 26.8% of Revenue ex-TAC, compared with $14.3 million, or 24.9% of Revenue ex-TAC, in Q210.
    • Adjusted Net Income of $5.0 million increased 43% compared with $3.5 million in Q210. Adjusted Net Income per share – diluted of $0.06, grew 50% compared with $0.04 in Q210.
    • Discretionary Free Cash Flow increased 147% to $11.1 million, compared with $4.5 million in Q210.
    • Free Cash Flow of $(4.8) million compared with ($6.5) million in Q210.

     

    “We posted another strong quarter, driven by significant year-over-year growth in both our Content & Media and Registrar businesses as we continued to enhance our content library with new talent, video, and feature articles,” said Richard Rosenblatt, chairman and CEO of Demand Media. “We plan to build on this momentum by expanding our brand advertising relationships and accelerating our content platform’s international and social media growth initiatives.”

    1 Non-GAAP measures are described below and are reconciled to the corresponding GAAP measures in the accompanying tables.

    Q211 Financial Highlights:

     

    • Content & Media Revenue increased 38% to $49.8 million, compared with $36.1 million in Q210.
    • Traffic acquisition costs (TAC), which represent the portion of Content & Media revenue shared with Demand Media partners, of $2.8 million, or 5.6% of Content & Media revenue, compared with $3.1 million, or 8.5% of Content & Media revenue, in Q210.
    • Content & Media Revenue ex-TAC grew 42% to $47.0 million, from $33.0 million in Q210.
    • Registrar Revenue increased 22% to $29.6 million, compared with $24.3 million in Q210.
    • Investment in Intangible Assets of $15.9 million increased 45% from $11.0 million in Q210.

     

    “Year-over-year growth in our content library, audience and brand advertising revenue, combined with very strong Registrar performance drove our Q2 results,” said Demand Media’s President and CFO Charles Hilliard.”We generated strong cash flow from operations, ending the quarter with over $100 million in cash, and plan to continue to invest further in quality content and other growth opportunities in a financially disciplined manner.”

    Q211 Business Highlights and Recent Developments:

    Advertising

     

    • Demand Media announced a significant multi-year media partnership with L’Oreal USA, representing one of L’Oreal USA’s largest digital marketing initiatives.
    • Brand advertising sales contributed to 18% year-over-year growth in owned & operated Content & Media RPMs in Q2.
    • In August 2011, the Company acquired IndieClick, expanding its brand advertising capabilities. IndieClick helps advertisers reach the valuable 18-34 year old demographic through innovative ad formats – including rich media, video, mobile and social media – that are integrated onto carefully selected destinations.
    • Today the Company announced a three-year renewal and expansion of its ongoing advertising partnership with Google.

     

    Publishing

     

    • In June 2011, the Company launched Rachael Ray and Buddies on the eHow Food channel.
    • During Q2, Demand Media captured the second largest YouTube partner audience of unique users worldwide, according to comScore, Inc.
    • In July 2011, Demand Media acquired a Latin American content team adding Spanish language capabilities and supporting the beta version launch of eHow Español in August 2011.

     

    Social

     

    • In August 2011, the Company expanded its social content capabilities through the acquisition of RSS Graffiti. During July 2011, over 600,000 brands, online publishers and individuals shared more than 60 million pieces of content with their friends and fans using the RSS Graffiti application.

     

    Registrar

     

    • ICANN recently approved the issuance of new generic top-level domains (gTLDs). As the world’s second largest Internet domain registrar, the Company’s Registrar business is expanding its technology platform to distribute new gTLDs when they are launched.

     

    Debt Financing

     

    • In August 2011, the Company replaced its existing $100 million credit facility with a new, five-year $105 million credit facility led by Silicon Valley Bank and U.S. Bank, N.A.

     

    Operating Metrics:

    Three months endedJune 30, Six months endedJune 30,
    2010 2011 %
    Change    		 2010 2011 %
    Change
    Content & Media Metrics:
    Owned and operated
    Page views(1) (in millions) 1,994 2,573 29% 3,948 5,155 31%
    RPM(2) $ 12.89 $ 15.19 18% $ 11.81 $ 15.45 31%
    Network of customer websites
    Page views(1) (in millions) 3,153 3,688 17% 5,799 7,454 29%
    RPM(2) $ 3.30 $ 2.91 (12)% $ 3.39 $ 2.96 (13)%
    RPM ex-TAC(3) $ 2.32 $ 2.15 (7)% $ 2.40 $ 2.15 (10)%
    Registrar Metrics:
    End of Period # of Domains(4) (in millions) 10.1 11.9 18% 10.1 11.9 18%
    Average Revenue per Domain(5) $ 10.00 $ 10.17 2% $ 9.96 $ 10.03 1%
    (1) Page views represent the total number of web pages viewed across our owned and operated websites and/or our network of customer websites. During the quarter ended June 30, 2011, owned and operated page views were positively impacted by a product change associated with certain page features, including the presentation of picture slide shows, which did not impact advertising impressions. Excluding the impact of such change, during the quarter and six months ended June 30, 2011, page views would have increased approximately 21% and 28%, respectively, compared to the corresponding prior-year periods.
    (2) RPM is defined as Content & Media revenue per one thousand page views. During the quarter ended June 30, 2011, owned and operated RPMs were negatively impacted by a product change associated with certain page features, including the presentation of picture slide shows, which did not impact advertising impressions. Excluding the impact of such change, during the quarter and six months ended June 30, 2011, RPMs would have increased approximately 26% and 33%, respectively, compared to the corresponding prior-year periods.
    (3) RPM ex-TAC is defined as Content & Media Revenue ex-TAC per one thousand page views.
    (4) Domain is defined as an individual domain name paid for by a third-party customer where the domain name is managed through our Registrar service offering.
    (5) Average revenue per domain is calculated by dividing Registrar revenue for a period by the average number of domains registered in that period. Average revenue per domain for partial year periods is annualized.

    Business Outlook

    The following forward-looking information includes certain projections made by management as of the date of this press release. The Company does not intend to revise or update this information, except as required by law, and may not provide this type of information in the future. Due to a variety of factors, actual results may differ significantly from those projected. The factors that may affect results include, without limitation, the factors referenced later in this announcement under the caption “Cautionary Information Regarding Forward-Looking Statements.” These and other factors are discussed in more detail in the Company’s filings with the Securities and Exchange Commission.

    Below is the Company’s guidance for the quarter ending September 30, 2011, and fiscal year ending December 31, 2011.

    (In millions) Third Quarter(2)2011 Fiscal Year(2) 2011
    Revenue $78.5 – $82.5 $321.5 – $329.5
    TAC (traffic acquisition costs) $3.5 $13.5
    Revenue ex-TAC $75.0 – $79.0 $308.0 – $316.0
    Income (loss) from operations ($5.8)- ($4.3) ($10.1) – ($7.1)
    Depreciation $5.0 $21.0
    Amortization of intangible assets $11.0 $41.5
    Stock-based compensation $7.0 $28.5
    Acquisition and realignment costs(1) $1.3 $2.1
    Adjusted OIBDA $18.5 – $20.0 $83.0 – $86.0
    Weighted average diluted shares(3) 88.0 – 90.0 90.0 – 92.0
    (1) Acquisition and realignment costs include non-cash purchase accounting adjustments, acquisition-related legal and accounting professional fees and employee severance payments attributable to corporate realignment activities. Management does not consider these expenses to be indicative of the Company’s core operating results.
    (2) The Company expects the combined effect of acquisitions, all of which were completed post June 30, 2011, to contribute approximately $3.0 million and $1.5 million of full-year 2011 revenue and revenue ex-TAC, respectively, with the majority of such effect occurring in the fourth quarter of 2011; to be negative to full year 2011 Income (loss) from operations and to be neutral to full year 2011 Adjusted OIBDA.
    (3) Weighted average diluted shares include the weighted average common stock and restricted stock for the periods presented and all dilutive common stock equivalents in each period. Fiscal year 2011 amounts have been adjusted to reflect the revised capital structure following the Company’s initial public offering, which was completed on January 31, 2011, whereby the Company issued 5.2 million shares of common stock and converted certain warrants and all of its convertible preferred stock into 62.2 million shares of common stock as if those transactions were consummated on January 1, 2011.

    Conference Call and Webcast Information

    Demand Media will host a corresponding conference call and live webcast at 5:00 p.m. Eastern time today. To access the conference call, dial 877.565.1268 (for domestic participants) or 937.999.3108 (for international participants). The conference ID is 82803485. To participate on the live call, analysts and investors should dial-in at least 10-minutes prior to the commencement of the call. A live webcast also will be available on the Investor Relations section of the Company’s corporate website athttp://ir.demandmedia.com and via replay beginning approximately two hours after the completion of the call. An audio replay of the call will also be available to investors beginning at approximately 6:00 p.m. Eastern on August 9, 2011 until 11:59 p.m. Eastern on August 11, 2011, by dialing 855.859.2056 (for the U.S. and Canada) or 404.537.3406 (for international callers) and entering passcode 82803485.

    About Non-GAAP Financial Measures

    To supplement our consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), we use certain non-GAAP financial measures described below. The presentation of this additional financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliation of Non-GAAP Measures to Unaudited Consolidated Statements of Operations” included at the end of this release.

    The non-GAAP financial measures presented are the primary measures used by the Company’s management and board of directors to understand and evaluate its financial performance and operating trends, including period to period comparisons, to prepare and approve its annual budget and to develop short and long term operational plans. Additionally, Adjusted OIBDA is the primary measure used by the compensation committee of the Company’s board of directors to establish the target for and fund its annual employee bonus pool. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) management frequently uses them in its discussions with investors, commercial bankers, securities analysts and other users of its financial statements.

    Revenue ex-TAC is defined by the Company as GAAP revenue less traffic acquisition costs (TAC). TAC comprises the portion of Content & Media GAAP revenue shared with the Company’s network customers. Management believes that Revenue ex-TAC is a meaningful measure of operating performance because it is frequently used for internal managerial purposes and helps facilitate a more complete period-to-period understanding of factors and trends affecting the Company’s underlying revenue performance.

    Adjusted operating income before depreciation and amortization (“Adjusted OIBDA”) is defined by the Company as operating income (loss) before depreciation, amortization, stock-based compensation, as well as the financial impact of acquisition and realignment costs, and any gains or losses on certain asset sales or dispositions. Acquisition and realignment costs include such items, when applicable, as (1) non-cash GAAP purchase accounting adjustments for certain deferred revenue and costs, (2) legal, accounting and other professional fees directly attributable to acquisition activity, and (3) employee severance payments attributable to acquisition or corporate realignment activities. Management does not consider these expenses to be indicative of the Company’s ongoing operating results or future outlook.

    Management believes that this non-GAAP measure reflects the Company’s business in a manner that allows for meaningful period to period comparisons and analysis of trends. In particular, the exclusion of certain expenses in calculating Adjusted OIBDA can provide a useful measure for period to period comparisons of the Company’s underlying recurring revenue and operating costs which is focused more closely on the current costs necessary to utilize previously acquired long-lived assets. In addition, management believes that it can be useful to exclude certain non-cash charges because the amount of such expenses is the result of long-term investment decisions in previous periods rather than day-to-day operating decisions. For example, due to the long-lived nature of a majority of its media content, the revenue generated by the Company’s content assets in a given period bears little relationship to the amount of its investment in content in that same period. Accordingly, management believes that content acquisition costs represent a discretionary long-term capital investment decision undertaken at a point in time. This investment decision is clearly distinguishable from other ongoing business activities, and its discretionary nature and long-term impact differentiate it from specific period transactions, decisions regarding day-to-day operations, and activities that would have an immediate impact on operating or financial performance if materially changed, deferred or terminated.

    Adjusted Net Income is defined by the Company as net income (loss) before the effect of stock-based compensation, amortization of intangible assets acquired via business combinations and acquisition and realignment costs, and any gains or losses on certain asset sales or dispositions, and is calculated using the application of a normalized effective tax rate. Acquisition and realignment costs include such items, when applicable, as (1) non-cash GAAP purchase accounting adjustments for certain deferred revenue and costs, (2) legal, accounting and other professional fees directly attributable to acquisition activity, and (3) employee severance payments attributable to acquisition or corporate realignment activities. Management does not consider these expenses to be indicative of the Company’s ongoing operating results or future outlook.

    Management believes that Adjusted Net Income and Adjusted Net Income per share provide investors with additional useful information to measure the Company’s underlying financial performance, particularly from period to period, because these measures are exclusive of certain non-cash expenses not directly related to the operation of its ongoing business (such as amortization of intangible assets acquired via business combinations, as well as certain other non-cash expenses such as purchase accounting adjustments and stock-based compensation) and include a normalized effective tax rate based on the Company’s statutory tax rate.

    Discretionary Free Cash Flow is defined by the Company as net cash provided by operating activities, less capital expenditures to acquire property and equipment. Free Cash Flow is defined by the Company as net cash provided by operating activities, less capital expenditures to acquire property and equipment and less investments in intangible assets. Management believes that Discretionary Free Cash Flow and Free Cash Flow provide investors with additional useful information to measure operating liquidity because they reflect the Company’s operating cash flows after investing in capital assets and intangible assets. These measures are used by management, and may also be useful for investors, to assess the Company’s ability to generate cash flow for a variety of strategic opportunities, including reinvestment in the business, potential acquisitions, payment of dividends and share repurchases.

    The use of these non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense, or cash flows that affect the Company’s operations. An additional limitation of these non-GAAP financial measures is that they do not have standardized meanings, and therefore other companies may use the same or similarly-named measures but exclude different items or use different computations. Management compensates for these limitations by reconciling these non-GAAP financial measures to the most comparable GAAP financial measures within its financial press releases. These non-GAAP financial measures should be considered in addition to, not as a substitute for, measures prepared in accordance with GAAP. Further, these non-GAAP financial measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure. The accompanying tables have more details on the GAAP financial measures and the related reconciliations.

    About Demand Media

    Demand Media, Inc. (NYSE: DMD) is a content and social media company that serves consumers, advertisers, publishers and creative professionals with a diverse portfolio of properties, products and services. Through brands like eHow, LIVESTRONG.COM, Cracked and typeF, Demand Media informs and entertains one of the internet’s largest audiences every month, helps advertisers find innovative ways to engage with their customers and enables publishers to expand their online presence. Founded in 2006, Demand Media is headquartered in Santa Monica, CA with offices in Kirkland, WA; Austin, TX; Chicago, IL; New York, NY; and London, UK. For more information about Demand Media visitwww.demandmedia.com.

    Cautionary Information Regarding Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended.These forward-looking statements involve risks and uncertainties regarding the Company’s future financial performance, and are based on current expectations, estimates and projections about our industry, financial condition, operating performance and results of operations, including certain assumptions related thereto.Statements containing words such as “guidance,” “may,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “project,” “projections,” “business outlook,” and “estimate” or similar expressions constitute forward-looking statements.Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. Potential risks and uncertainties include, among others: changes in the methodologies of Internet search engines, including the recent algorithmic changes made by Google to its search results as well as possible future changes, and the impact such changes may have on page view growth and driving search related traffic to our owned and operated websites and the websites of our network customers; the inherent challenges of estimating the overall impact on page views and search driven traffic to our owned and operated websites based on the limited data available to us since the last algorithmic changes made by Google; our ability to compete with new or existing competitors; our ability to maintain or increase our advertising revenue; our ability to continue to drive and grow traffic to our owned and operated websites and the websites of our network customers; our ability to effectively monetize our portfolio of content; our dependence on material agreements with a specific business partner for a significant portion of our revenue; future internal rates of return on content investment and our decision to invest in different types of content in the future; our ability to attract and retain freelance content creators; the effects of changes in marketing expenditures or shifts in marketing expenditures; the effects of seasonality on traffic to our owned and operated websites and the websites of our network customers; changes in stock-based compensation; changes in amortization or depreciation expense due to a variety of factors; potential write downs, reserves against or impairment of assets including receivables, goodwill, intangibles or other assets; changes in tax laws, our business or other factors that would impact anticipated tax benefits or expenses; our ability to successfully identify, consummate and integrate acquisitions, including integrating our recent acquisitions; our ability to retain key customers and key personnel; risks associated with litigation; the impact of governmental regulation; and the effects of discontinuing or discontinued business operations.From time to time, we may consider acquisitions or divestitures that, if consummated, could be material.Any forward-looking statements regarding financial metrics are based upon the assumption that no such acquisition or divestiture is consummated during the relevant periods.If an acquisition or divestiture were consummated, actual results could differ materially from any forward-looking statements.More information about potential risk factors that could affect our operating and financial results are contained in our annual report on Form 10-K for the fiscal year ending December 31, 2010 filed with the Securities and Exchange Commission (http://www.sec.gov) on March 1, 2011, and as such risk factors may be updated in our quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, including, without limitation, information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”

    Furthermore, as discussed above, the Company does not intend to revise or update the information set forth in this press release, except as required by law, and may not provide this type of information in the future.

    Demand Media, Inc. and Subsidiaries
    Unaudited Condensed Consolidated Statements of Operations
    (In thousands, except per share amounts)
    Three months ended June 30, Six months ended June 30,
    2010 2011 2010 2011
    Revenue $ 60,355 $ 79,455 $ 114,002 $ 158,978
    Operating expenses
    Service costs (exclusive of amortization of intangible assets shown separately below) (1) (2) 31,571 37,869 61,735 75,523
    Sales and marketing (1) (2) 5,645 9,286 10,396 18,869
    Product development (1) (2) 6,482 9,642 12,514 18,893
    General and administrative (1) (2) 9,462 13,787 17,440 30,811
    Amortization of intangible assets 8,238 9,750 16,173 19,953
    Total operating expenses 61,398 80,334 118,258 164,049
    Income (loss) from operations (1,043 ) (879 ) (4,256 ) (5,071 )
    Other income (expense)
    Interest income 3 5 11 47
    Interest expense (168 ) (163 ) (349 ) (325 )
    Other income (expense), net (109 ) (2 ) (128 ) (259 )
    Total other expense (274 ) (160 ) (466 ) (537 )
    Income (loss) before income taxes (1,317 ) (1,039 ) (4,722 ) (5,608 )
    Income tax (expense) (610 ) (1,332 ) (1,327 ) (2,345 )
    Net income (loss) $ (1,927 ) $ (2,371 ) $ (6,049 ) $ (7,953 )
    (1) Stock-based compensation expense included in the line items above:
    Service costs $ 221 $ 347 $ 428 $ 584
    Sales and marketing 504 1,136 968 2,036
    Product development 437 1,130 775 2,246
    General and administrative 1,367 2,807 2,600 9,481
    Total stock-based compensation expense $ 2,529 $ 5,420 $ 4,771 $ 14,347
    (2) Depreciation included in the line items above:
    Service costs $ 3,483 $ 4,149 $ 6,826 $ 8,193
    Sales and marketing 41 115 82 187
    Product development 318 438 659 759
    General and administrative 516 878 921 1,450
    Total depreciation $ 4,358 $ 5,580 $ 8,488 $ 10,589
    Earnings (loss) per common share:
    Net income (loss) $ (1,927 ) $ (2,371 ) $ (6,049 ) $ (7,953 )
    Cumulative preferred stock dividends (3) (8,243 ) — (16,206 ) (2,477 )
    Net loss attributable to common stockholders $ (10,170 ) $ (2,371 ) $ (22,255 ) $ (10,430 )
    Basic and diluted net loss per share $ (0.75 ) $ (0.03 ) $ (1.69 ) $ (0.14 )
    Weighted average number of shares 13,482 83,088 13,174 73,477
    (3) As a result of the Company’s initial public offering which was completed on January 31, 2011, all shares of the Company’s preferred stock were converted to common stock.
    Demand Media, Inc. and Subsidiaries
    Unaudited Condensed Consolidated Balance Sheets
    (In thousands)
    December

    31, 2010

    		 June 30,
    2011
    Current assets
    Cash and cash equivalents $ 32,338 $ 103,602
    Accounts receivable, net 26,843 30,456
    Prepaid expenses and other current assets 7,360 7,008
    Deferred registration costs 44,213 47,504
    Total current assets 110,754 188,570
    Property and equipment, net 34,975 35,134
    Intangible assets, net 102,114 114,848
    Goodwill 224,920 227,849
    Deferred registration costs 8,037 8,806
    Other long-term assets 7,667 3,841
    Total assets $ 488,467 $ 579,048
    Liabilities, Convertible Preferred Stock and Stockholders’ Equity (Deficit)
    Current liabilities
    Accounts payable $ 8,330 $ 7,787
    Accrued expenses and other current liabilities 29,570 27,124
    Deferred tax liabilities 15,248 17,791
    Deferred revenue 61,832 67,125
    Total current liabilities 114,980 119,827
    Deferred revenue 14,106 14,306
    Other liabilities 1,043 976
    Total liabilities 130,129 135,109
    Convertible preferred stock
    Total convertible preferred stock 373,754 —
    Stockholders’ equity (deficit)
    Common stock and additional paid-in capital 36,723 504,039
    Accumulated other comprehensive income 108 100
    Accumulated deficit (52,247 ) (60,200 )
    Total stockholders’ equity (deficit) (15,416 ) 443,939
    Total liabilities, convertible preferred stock and stockholders’ equity (deficit) $ 488,467 $ 579,048
    Demand Media, Inc. and Subsidiaries
    Unaudited Condensed Consolidated Statements of Cash Flows
    (In thousands)
    Three months ended
    June 30,    		 Six months ended
    June 30,
    2010 2011 2010 2011
    Cash flows from operating activities:
    Net income (loss) $ (1,927 ) $ (2,371 ) $ (6,049 ) $ (7,953 )
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:
    Depreciation and amortization 12,596 15,330 24,661 30,542
    Stock-based compensation 2,434 5,426 4,578 14,262
    Other 719 1,214 1,281 2,069
    Net change in operating assets and liabilities, net of effect of acquisitions (4,267 ) (2,751 ) (49 ) (2,852 )
    Net cash provided by operating activities 9,555 16,848 24,422 36,068
    Cash flows from investing activities:
    Purchases of property and equipment (5,066 ) (5,746 ) (9,502 ) (10,830 )
    Purchases of intangibles (10,973 ) (15,858 ) (21,141 ) (30,062 )
    Proceeds from maturities and sales of marketable securities, net 1,475 — 2,300 —
    Cash paid for acquisitions — — — (3,839 )
    Net cash used in investing activities (14,564 ) (21,604 ) (28,343 ) (44,731 )
    Cash flows from financing activities:
    Proceeds (payment) of debt, net — — (10,000 ) —
    Proceeds from issuance of common stock, net 189 (250 ) 714 78,625
    Proceeds from exercises of stock options — 674 — 1,525
    Other (638 ) (106 ) (781 ) (215 )
    Net cash provided by (used in) financing activities (449 ) 318 (10,067 ) 79,935
    Effect of foreign currency on cash and cash equivalents (15 ) (16 ) (59 ) (8 )
    Change in cash and cash equivalents (5,473 ) (4,454 ) (14,047 ) 71,264
    Cash and cash equivalents, beginning of period 39,034 108,056 47,608 32,338
    Cash and cash equivalents, end of period $ 33,561 $ 103,602 $ 33,561 $ 103,602
    Demand Media, Inc. and Subsidiaries
    Reconciliations of Non-GAAP Measures to Unaudited Consolidated Statements of Operations
    (In thousands, except per share amounts)
      Three months ended
    June 30,    		 Six months ended
    June 30,
    2010 2011 2010 2011
    Revenue ex-TAC:
    Content & Media revenue $ 36,093 $ 49,822 $ 66,291 $ 101,674
    Less: traffic acquisition costs (TAC) (3,063 ) (2,813 ) (5,757 ) (6,003 )
    Content & Media Revenue ex-TAC 33,03024,262 47,00729,633 60,53447,711 95,67157,304
    Registrar revenue
    Total Revenue ex-TAC $ 57,292 $ 76,642 $ 108,245 $ 152,975
    Adjusted OIBDA:
    Income (loss) from operations $ (1,043 ) $ (879 ) $ (4,256 ) $ (5,071 )
    Depreciation 4,358 5,580 8,488 10,589
    Amortization of intangible assets 8,238 9,750 16,173 19,953
    Stock-based compensation 2,529 5,420 4,771 14,347
    Acquisition and realignment costs(1) 209 638 425 771
    Adjusted OIBDA $ 14,291 $ 20,509 $ 25,601 $ 40,589
    Discretionary and Total Free Cash Flow:
    Net cash provided by operating activities $ 9,555 $ 16,848 $ 24,422 $ 36,068
    Purchases of property and equipment (5,066 ) (5,746 ) (9,502 ) (10,830 )
    Discretionary Free Cash Flow 4,489 11,102 14,920 25,238
    Purchases of intangible assets (10,973 ) (15,858 ) (21,141 ) (30,062 )
    Free Cash Flow $ (6,484 ) $ (4,756 ) $ (6,221 ) $ (4,824 )
    Adjusted Net Income:
    GAAP net income (loss) $ (1,927 ) $ (2,371 ) $ (6,049 ) $ (7,953 )
    (a) Stock-based compensation 2,529 5,420 4,771 14,347
    (b) Amortization of intangible assets – M&A 4,269 3,097 8,938 6,831
    (c) Acquisition and realignment costs(1) 209 638 425 771
    (d) Income tax effect of items (a) – (c) & application of 38% statutory tax rate to pre-tax income (1,552 ) (1,752 ) (2,250 ) (3,865 )
    Adjusted Net Income $ 3,528 $ 5,032 $ 5,835 $ 10,131
    Non-GAAP Adjusted Net Income per share – diluted $ 0.04 $ 0.06 $ 0.07 $ 0.11
    Shares used to calculate non-GAAP Adjusted Net Income per share – diluted (2) 85,676 88,691 85,268 89,258
    (1) Acquisition and realignment costs include non-cash purchase accounting adjustments, acquisition-related legal and accounting professional fees and employee severance payments attributable to corporate realignment activities. Management does not consider these costs to be indicative of the Company’s core operating results.
    (2) Shares used to calculate non-GAAP Adjusted Net Income per share – diluted include the weighted average common stock and restricted stock for the periods presented and all dilutive common stock equivalent at each period. Amounts have been adjusted in all periods to reflect the revised capital structure following the Company’s initial public offering which was completed on January 31, 2011, whereby the Company issued 5,175 shares of common stock and converted certain warrants and all of the convertible preferred stock into 62,155 shares of common stock as if those transactions were consummated on January 1, 2010.
    Demand Media, Inc. and Subsidiaries
    Unaudited GAAP Revenue, by Revenue Source
    (In thousands)
      Three months ended
    June 30,    		 Six months ended
    June 30,
    2010 2011 2010 2011
    Content & Media:
    Owned and operated websites $ 25,703 $ 39,095 $ 46,636 $ 79,619
    Network of customer websites 10,390 10,727 19,655 22,055
    Total revenue – Content & Media 36,093 49,822 66,291 101,674
    Registrar 24,262 29,633 47,711 57,304
    Total revenue $ 60,355 $ 79,455 $ 114,002 $ 158,978
      Three months ended
    June 30,    		 Six months ended
    June 30,
    2010 2011 2010 2011
    Content & Media:
    Owned and operated websites 43 % 49 % 41 % 50 %
    Network of customer websites 17 % 14 % 17 % 14 %
    Total revenue – Content & Media 60 % 63 % 58 % 64 %
    Registrar 40 % 37 % 42 % 36 %
    Total revenue 100 % 100 % 100 % 100 %

    SOURCE: Demand Media, Inc.

     

  • Google Instant Pages Now Default in Chrome

    Google Instant Pages Now Default in Chrome

    You may recall, back in June when Google announced Instant Pages. The concept is that Google begins loading the page it thinks you’re most likely to click on before you even click on it. This means, in theory at least, that results should load instantly by the time you actually do click on them.

    Now Google has launched a new version of Chrome where this functionality is enabled by default.

    “When we can predict with reasonable confidence that you’ll click the first result, Instant Pages will begin loading the webpage early,” explains software engineer Ziga Mahkovec. “By the time you click on the result, the entire webpage will often appear to have loaded instantly.”

    When Google first announced Instant Pages, it raised some questions about how it would work with Analytics. A Google spokesperson told WebProNews:

    Most website analytics solutions assume that one page load is equivalent to one user “impression,” or page view. Although google.com only issues the prerender hint when it is confident that it knows where the user will click, in some cases it will mispredict, resulting in a page that has appeared to load but was never actually shown to the user.  Although this will happen relatively rarely, in some cases it is important for the webpage to know.

    Chrome has implemented a new API called the page visibility API that, among other things, allows websites to detect when they’re being prerendered. You can learn more about that API at our Using the Page Visibility API article.

    Analytics and advertising solutions will have to be updated to take account of prerendering via the page visibility API. In most cases the end site owner shouldn’t have to make any modifications to his page; the 3rd party will simply make a minor change to the javascript that is pulled into publishers’ pages. You should check with your analytics or advertising providers to check if their scripts are prerendering-aware.

    A month ago, StatCounter released some stats indicating that Chrome now accounts for 20% of the global web browser market.

  • Google is a Speed Freak and Wants to Drag You Along with Page Speed Service

    Google is a Speed Freak and Wants to Drag You Along with Page Speed Service

    I originally had the title of this post as, “Google has a need, a need for speed!” and then suddenly realized that was probably the least original post title ever.  After a quick Google search, I confirmed as much, and instead alluded that a search engine has drug issues… much better.

    Anyway, starting in 2010 with the Caffeine release, Google made it known that it was really into websites that load quickly.  So much so that it is now part of the algorithm that determines your site’s rankings in organic results.  How much of a factor is not known, but we’ve seen it make a big difference in our client’s rankings once page load time is improved, so it’s definitely worth your time to look into the matter.

    As you may know from some of my other posts, Fang Digital performs a lot of SEO Audits for our clients. During these audits, we look at three major areas of interest: Content, Site Architecture, and Inbound Links. Within these three major areas, there lives a myriad of details that can make or break a site’s organic rankings, and page load speed is an important part of the Site Architecture area of interest.

    We usually charge for SEO Audits, but here’s a freebie… seriously check out your page load speed. I say this because, during the many audits we provide for our clients, page load speed comes up a lot… I mean, a lot, a lot.  Plus, it’s one of those factors of the audit that is always a surprise when we present our findings, so it’s easy to say that its one of the pieces of the algorithm that is often overlooked.

    Here’s another reason to look at page load speed: your customers. You know, those people that the site is actually for in the first place?  Yeah, they can’t stand it when a site loads slowly, which is really the reason why Google includes it as a ranking factor (you may hear others say it was for the previews you can get in organic listings now or other reasons, but the heart of the matter is, nobody likes a slow site).

    The good news is that Google is here to help and will drag your slow butt into the fast lane if it has to in order to make sure that everybody is on board with this concept.  How are they doing this? For starters, “Site Performance” is one of the items you can review within Google Webmaster Tools under “Labs;” that’s usually your first indication that you have an issue (and where that graph in this post comes from).  Then, about two years ago Google released the Page Speed browser extension for Firefox and earlier this year a Google Chrome extension that allows website owners to find out exactly what is slowing their pages down.  They also released a Page Speed Online API to provide developers with specific suggestions to make their web pages faster. Last year they released an Apache module called mod_pagespeed, to automatically rewrite web pages before they are delivered to the public. Just the other day, Google announced the latest tool in the speed tool chest, Page Speed Service.

    A lot of SEOs hate telling you about the tools they use to do their audits, but that’s mostly because if they keep SEO sounding like its a form of dark magic, it will scare the regular folk into paying them big bucks to fix their organic listings. We at Fang Digital think that’s kind of silly and respect the fact that the reason companies hire SEOs is because they usually just don’t have the resources to handle it internally or with the same level of efficiency.  I mean, I could probably do my own plumbing work too, but it would take me twice as long and probably some cuts and bruises, so I just hire a pro when the time comes.

    Anyway, one of the tools we use during our SEO Audits is the PageSpeed extension for Google Chrome and like I said, we usually always find something that is slowing our clients’ sites down enough for Google to notice.  Some of our larger clients have internal resources that can attack the recommendations we provide from the PageSpeed tool, but many of our other clients wouldn’t even know where to start, and that’s where the Page Speed Service comes in handy.

    Google’s Page Speed Service is service that automatically speeds up the load time of your web pages by grabbing your existing pages, running them through some optimization filters to fix a bunch of common issues, and then serves those optimized pages for you . As Google says, “Now you don’t have to worry about concatenating CSS, compressing images, caching, gzipping resources or other web performance best practices.”

    This is majorly cool in my book.  Anytime I can outsource something like this to another pro that will just handle it for me, I’m on board.  Of course, there are some concerns about the fact that you’re relying on Google’s servers to get your pages out to your customers, but if there was anybody you could trust with this, I would think Google would be on top of the list.

    After you sign up, there will be some changes to your DNS file to be done, but that’s gotten easier and easier over the years, so I wouldn’t sweat that too much.  Right now, Page Speed service is on a free, limited run, so not everybody can use it, but if you can get in, I’d give it a shot.  I’m also hearing some grumbling that some sites are slower after they use Page Speed service, but I have been assured that this was caused by the initial rush of new users and Google is compensating and adjusting constantly to get past this issue (if they haven’t already).

    Like I said, this is a free service right now and Google has already made it known that they’ll charge for it eventually, so I’d get in on it now while it’s free and see how much of a difference it can make for your organic listings and traffic.  As I’ve always said, there really is no “secret sauce” for SEO, there’s just knowing and playing by the rules and the rest will fall into place.

    Enjoy!

    Check out Fang Digital Marketing for more articles by Jeff Ferguson

  • Windows Phone Mango Goes to Manufacturers

    Windows Phone Mango Goes to Manufacturers

    The next version of the Windows Phone operating system – Mango – has been released to the first manufacturers who will produce devices built around it.

    “This marks the point in the development process where we hand code to our handset and mobile operator partners to optimize Mango for their specific phone and network configurations,” says Microsoft’s Terry Myerson Here on the Windows Phone team, we now turn to preparing for the update process. The Mango update for current Windows Phone handsets will be ready this fall, and of course will come pre-installed on new Windows Phones.”

    “We can’t wait to get Mango in your hands so you can experience all the new features for yourself and give us feedback on where to go next. As we reach additional milestones we will be back to share more but until then, thank you for your support of Windows Phone.”

    Microsoft revealed Mango in May, adding hundreds of new features to the Windows Phone operating system. “When we looked ahead to the next release, we wanted to stay true to the principles of Windows Phone 7 – that software should get out of your way and quickly connect you to the things that matter most,” said Greg Sullivan, senior product manager of mobile communications at Microsoft. “Mango builds on the work that we did in Windows Phone 7 and extends a lot of key scenarios around communications, apps, and Internet experiences – with even more capability and a deeper level of integration.”

    @jldavid
    Jean-Luc David    Windows Phone “Mango” Released to Manufacturing: http://bit.ly/n8HM2N (via @windows) 2 hours ago via bitly · powered by @socialditto

    Mango includes an “App Connect” feature, which connects apps to search results, and is designed to surface apps “when and where they make sense”. For example, if you search Bing (the default search engine of course) for a movie, you may get results delivered in the form of show times and theater locations actually from the Fandango app.

    “It’s like having a great butler or a valet that you’ve known for 30 years who can anticipate your every need instead you doing all the work yourself,” Sullivan said. “Windows Phone stitches all of this together for you and connects the applications you have on your phone, or that we have in the marketplace, to the rest of what you’re doing, in a way that’s much, much deeper than any other platform. So you can go from Binging to buying in seconds.”

    More features are discussed here, but we find the ways that the operating system is integrating search with other apps quite interesting, particularly for search marketers. If this becomes a trend in mobile search, it places emphasis on the need for visibility among popular mobile apps.

    According to reports, Fujitsu and KDDI (in Japan) will be the first to launch Mango-based phones.

  • Google Labs is Closing Down

    Google Labs is closing down. Google announced as much on its official blog today. I’m not sure what this really means other than new Google experiments will come out without the Google Labs label, and likely just with a beta label attached to them, but here’s what Bill Coghran, SVP for Research and Systems Infrastructure had to say:

    Last week we explained that we’re prioritizing our product efforts. As part of that process, we’ve decided to wind down Google Labs. While we’ve learned a huge amount by launching very early prototypes in Labs, we believe that greater focus is crucial if we’re to make the most of the extraordinary opportunities ahead.

    In many cases, this will mean ending Labs experiments—in others we’ll incorporate Labs products and technologies into different product areas. And many of the Labs products that are Android apps today will continue to be available on Android Market. We’ll update you on our progress via the Google Labs website.

    We’ll continue to push speed and innovation—the driving forces behind Google Labs—across all our products, as the early launch of the Google+ field trial last month showed.

    The most recent Google Labs project to be released was Swiffy – the SWF to HTML5 file converter. Other projects to come out this year include: Google Scribe, Julia Map, Art Project, Google Correlate, Page Speed Online, and Google Talk Guru.

    Other notable experiments to come out over the years include: Fast Flip, Google Goggles, Google Listen, Google News Timeline, Public Data Explorer, Google Squared, Sky Map for Android, Shopper, Google Moderator, Google Code Search, Google Mars, Google Desktop, Google Groups, Google Alerts, iGoogle and Google Suggest.

    Even Google Reader, Google Maps, Google Docs, Google Trends, and Google Social Search started out in Labs.

    It’s unclear just what projects they’ll be shutting down. We’ve already seen some make their way into other products. Google Squared, for example is already being used to deliver some kinds of related search results in Google Search. I would assume Google will keep us posted as they shut down on plans for individual items.

    Google also recently announced it was closing the doors on Google Health and Powermeter.

  • Yahoo Earnings Released

    Apple wasn’t the only big tech company to release its earnings report today. Yahoo released its report, though technically the company considers itself a media company.

    Either way, Yahoo revenue, excluding acquisition costs was $1,076 million for the second quarter, down year-over-year by 5%. Income from operations did increase 9% to  $191 million for the quarter.

    “For the quarter, earnings per share was up  by 18% year over year.  We made clear progress in search, and saw strong growth in engagement on our media properties,” said Carol Bartz, CEO of Yahoo!.  “We experienced softness in display revenue in the second half of the quarter due to comprehensive changes we have made in our sales organization to position ourselves for more rapid display growth in the future.”

    Here are the highlights as presented by Yahoo:

    • Yahoo! is home to nine #1 properties globally, and is in the top three in 23 categories. Yahoo! has nine out of the top ten original video programs on the Web.
    • Yahoo! continued to modernize its technology platforms, with 33 additional sites across the Americas, EMEA and Asia Pacific going live on the new global content platform in the quarter, bringing the total to 67. Yahoo! News in the U.S. went live in the quarter, the largest site to migrate to date.
    • Yahoo! continued to break its traffic records with news events including the Royal Wedding in April. Marking the largest one day event with more than 400 million page views, Yahoo! operated the Internet’s number one Royal Wedding site. People also turned to Yahoo! when news of the death of Osama bin Laden broke, with almost 900 million page views on Yahoo! News, 50 million video streams and 500 million photos viewed in the first week.
    • Yahoo! launched its new version of Mail offering a faster, safer and easier to use version of the #1 U.S. email.
    • Yahoo! introduced Yahoo! App Search for the PC and Yahoo! AppSpot, a free mobile app for iPhone and Android users, to help users discover new and relevant mobile apps. Using Yahoo!’s powerful search technology, App Search and AppSpot allow users to zero-in on any app by showing matching app titles with a full comprehensive description, price, overall star rating from users, and screenshots in one spot.
    • Yahoo! and Benchmark Capital announced the formation of Hortonworks, an independent company consisting of key architects and core contributors to the open source Apache™ Hadoop™ technology pioneered by Yahoo!.
    • Yahoo! acquired IntoNow, enabling Yahoo! to provide enhanced media experiences and video programming, bolstering social engagement across the Yahoo! network and on all screens.
    • Yahoo! acquired 5to1, an online advertising alliance consisting exclusively of major media publishers.  Built on a proprietary publisher-controlled platform, 5to1 offers top brand advertisers premium inventory at mass scale.
    • Yahoo! continued to introduce new original video programming including “In the Dressing Room” from Cat Deeley, the  host of FOX Broadcasting Company’s number one dance show “So You Think You Can Dance” and “Trending Now,” which quickly became the second most popular program on Yahoo! News.

    All the financials can be found here (pdf).

  • Google Emailing Notices To Webmasters Regarding Unnatural Links

    Many websites have fallen victims to Google’s emphasis on quality. And over the past few months, one of the targets has been unnatural links on your websites used for enhanced indexing and ranking. Google’s webmaster tools guidelines clearly demonstrates its non tolerance towards unnatural websites. Since December 2010, Google has sent out numerous emails consisting notices to websites of the unnatural links that are directed on their sites. 

    The email being sent out by Google looks like:

    Google Webmaster Tools notice of detected unnatural links to (your website)

    Dear site owner or webmaster of (your website), We’ve detected that some of your site’s pages may be using techniques that are outside Google’s Webmaster Guidelines. Specifically, look for possibly artificial or unnatural links pointing to your site that could be intended to manipulate PageRank. Examples of unnatural linking could include buying links to pass PageRank or participating in link schemes. We encourage you to make changes to your site so that it meets our quality guidelines. Once you’ve made these changes, please submit your site for reconsideration in Google’s search results. If you find unnatural links to your site that you are unable to control or remove, please provide the details in your reconsideration request. If you have any questions about how to resolve this issue, please see our Webmaster Help Forum for support. Sincerely, Google Search Quality Team.


    Many webmasters seem to be completely taken off guard by this email. And to that end, many have discussed their concerns on the Google webmaster forum. One of the many such queries discussed on the forum is by studione on the 16th July 2011
    is http://playarena.nl/

    “ Hi
    I noticed this message send from Google two weeks ago about detecting unnatural links on my site www.playarena.nl/. My site is an online flash game site, with many games to be played.
    I read the guidelines: links added as part of a link exchange scheme may be considered excessive. I’m using Linkex for finding reciprocal link partners and by now have only two reciprocal links. Is using Linkex banned by google, as I read that exxesive use of reciprocal is not excepted. But in my case its accepted.

    Could somebody help me out on this.

    With Kind regards,

    Playarena”

    How to avoid this:

    • Make sure other websites link to your website, however in a natural way to increase your page ranking
    • Don’t participate in link schemes which include, manipulating, buying or selling PageRanks. According to Google’s Matt Cutts “remove the paid links that pass PageRank”. In addition to that, avoid linking to web spammers and engaging in too much reciprocal linking
    • Consider evaluating your link exchange scheme and discard off the links that would be unaccepted under the Google’s guidelines.
    • Also consider evaluating the content on your website and other websites which are along similar lines to yours
    • Furthermore, avoid using lists of keywords in an attempt to “cloak” pages, or upload “crawler only” pages

    Once you have made the above recommended changes:

    • Sign in using your Google account to Google webmaster tools
    • Add and verify the website you want Google to reconsider
    • Request Google to reconsider your website

    Once requested to be reconsidered, we suggest you hang in there tight. Google is usually fair to both the the webmasters and the users, you won’t have much problems there. 

    Check out Page Traffic Buzz for more articles by Navneet Kaushal.

  • Google Q2 Earnings Released

    Google Q2 Earnings Released

    Google has released its earnings report for the second quarter.

    The company posted a record over $9 billion in revenue for the quarter, up 32% from the same period last year. Not too shabby. More precisely, revenues were $9.03 billion for the quarter. Last year, Q2 revenues were $6.82 billion.

    Google’s own sites generated $6.23 billion, leaving AdSense partner sites generating $2.48 billion. That’s an increase of 20% from the same period last year. This is very interesting considering Google’s launch of the Panda update earlier this year, which affected the search visibility of a whole lot of webpages with AdSense ads on them. Apparently it didn’t hurt Google’s income too much.

    Paid clicks on Google sites and AdSense partner sites increased 18% YoY, and the average cost-per-click increased about 12%.

    Interestingly, Google’s employee headcount increased from 22,316 full-time employees at the end of March to 28,768 at the end of June.

    Here’s the report in its entirety:

    MOUNTAIN VIEW, Calif. – July 14, 2011 – Google Inc. (NASDAQ: GOOG) today announced financial results for the quarter ended June 30, 2011.

    “We had a great quarter, with revenue up 32% year on year for a record breaking over $9 billion of revenue,” said Larry Page, CEO of Google. “I’m super excited about the amazing response to Google+ which lets you share just like in real life.”

    Q2 Financial Summary

    Google reported revenues of $9.03 billion for the quarter ended June 30, 2011, an increase of 32% compared to the second quarter of 2010. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs (TAC). In the second quarter of 2011, TAC totaled $2.11 billion, or 24% of advertising revenues.

    Google reports operating income, operating margin, net income, and earnings per share (EPS) on a GAAP and non-GAAP basis. The non-GAAP measures, as well as free cash flow, an alternative non-GAAP measure of liquidity, are described below and are reconciled to the corresponding GAAP measures in the accompanying financial tables.

    • GAAP operating income in the second quarter of 2011 was $2.88 billion, or 32% of revenues. This compares to GAAP operating income of $2.37 billion, or 35% of revenues, in the second quarter of 2010. Non-GAAP operating income in the second quarter of 2011 was $3.32 billion, or 37% of revenues. This compares to non-GAAP operating income of $2.67 billion, or 39% of revenues, in the second quarter of 2010.
    • GAAP net income in the second quarter of 2011 was $2.51 billion, compared to $1.84 billion in the second quarter of 2010. Non-GAAP net income in the second quarter of 2011 was $2.85 billion, compared to $2.08 billion in the second quarter of 2010.
    • GAAP EPS in the second quarter of 2011 was $7.68 on 326 million diluted shares outstanding, compared to $5.71 in the second quarter of 2010 on 322 million diluted shares outstanding. Non-GAAP EPS in the second quarter of 2011 was $8.74, compared to $6.45 in the second quarter of 2010.
    • Non-GAAP operating income and non-GAAP operating margin exclude the expenses related to stock-based compensation (SBC). Non-GAAP net income and non-GAAP EPS exclude the expenses related to SBC and the related tax benefits. In the second quarter of 2011, the charge related to SBC was $435 million, compared to $309 million in the second quarter of 2010. The tax benefit related to SBC was $91 million in the second quarter of 2011 and $70 million in the second quarter of 2010.

    Q2 Financial Highlights

    Revenues – Google reported revenues of $9.03 billion in the second quarter of 2011, representing a 32% increase over second quarter 2010 revenues of $6.82 billion. Google reports its revenues, consistent with GAAP, on a gross basis without deducting TAC.

    Google Sites Revenues – Google-owned sites generated revenues of $6.23 billion, or 69% of total revenues, in the second quarter of 2011. This represents a 39% increase over second quarter 2010 revenues of $4.50 billion.

    Google Network Revenues – Google’s partner sites generated revenues, through AdSense programs, of $2.48 billion, or 28% of total revenues, in the second quarter of 2011. This represents a 20% increase from second quarter 2010 network revenues of $2.06 billion.

    International Revenues – Revenues from outside of the United States totaled $4.87 billion, representing 54% of total revenues in the second quarter of 2011, compared to 53% in the first quarter of 2011 and 52% in the second quarter of 2010. Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the first quarter of 2011 through the second quarter of 2011, our revenues in the second quarter of 2011 would have been $167 million lower. Excluding gains related to our foreign exchange risk management program, had foreign exchange rates remained constant from the second quarter of 2010 through the second quarter of 2011, our revenues in the second quarter of 2011 would have been $417 million lower.

    • Revenues from the United Kingdom totaled $976 million, representing 11% of revenues in the second quarter of 2011, compared to 11% in the second quarter of 2010.
    • In the second quarter of 2011, we recognized a benefit of $4 million to revenues through our foreign exchange risk management program, compared to $79 million in the second quarter of 2010.

    A reconciliation of our non-GAAP international revenues excluding the impact of foreign exchange and hedging to GAAP international revenues is included in the accompanying financial tables.

    Paid Clicks – Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 18% over the second quarter of 2010 and decreased approximately 2% over the first quarter of 2011.

    Cost-Per-Click – Average cost-per-click, which includes clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 12% over the second quarter of 2010 and increased approximately 6% over the first quarter of 2011.

    TAC – Traffic Acquisition Costs, the portion of revenues shared with Google’s partners, increased to $2.11 billion in the second quarter of 2011, compared to TAC of $1.73 billion in the second quarter of 2010. TAC as a percentage of advertising revenues was 24% in the second quarter of 2011, compared to 26% in the second quarter of 2010.

    The majority of TAC is related to amounts ultimately paid to our AdSense partners, which totaled $1.75 billion in the second quarter of 2011. TAC also includes amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $355 million in the second quarter of 2011.

    Other Cost of Revenues – Other cost of revenues, which is comprised primarily of data center operational expenses, amortization of intangible assets, content acquisition costs as well as credit card processing charges, increased to $1.06 billion, or 12% of revenues, in the second quarter of 2011, compared to $735 million, or 11% of revenues, in the second quarter of 2010.

    Operating Expenses – Operating expenses, other than cost of revenues, were $2.97 billion in the second quarter of 2011, or 33% of revenues, compared to $1.99 billion in the second quarter of 2010, or 29% of revenues.

    SBC – In the second quarter of 2011, the total charge related to SBC was $435 million, compared to $309 million in the second quarter of 2010.

    We currently estimate SBC charges for grants to employees prior to July 1, 2011 to be approximately $1.9 billion for 2011. This estimate does not include expenses to be recognized related to employee stock awards that are granted after June 30, 2011 or non-employee stock awards that have been or may be granted.

    Operating Income – GAAP operating income in the second quarter of 2011 was $2.88 billion, or 32% of revenues. This compares to GAAP operating income of $2.37 billion, or 35% of revenues, in the second quarter of 2010. Non-GAAP operating income in the second quarter of 2011 was $3.32 billion, or 37% of revenues. This compares to non-GAAP operating income of $2.67 billion, or 39% of revenues, in the second quarter of 2010.

    Interest and Other Income, Net – Interest and other income, net increased to $204 million in the second quarter of 2011, compared to $69 million in the second quarter of 2010.

    Income Taxes – Our effective tax rate was 19% for the second quarter of 2011.

    Net Income – GAAP net income in the second quarter of 2011 was $2.51 billion, compared to $1.84 billion in the second quarter of 2010. Non-GAAP net income was $2.85 billion in the second quarter of 2011, compared to $2.08 billion in the second quarter of 2010. GAAP EPS in the second quarter of 2011 was $7.68 on 326 million diluted shares outstanding, compared to $5.71 in the second quarter of 2010 on 322 million diluted shares outstanding. Non-GAAP EPS in the second quarter of 2011 was $8.74, compared to $6.45 in the second quarter of 2010.

    Cash Flow and Capital Expenditures – Net cash provided by operating activities in the second quarter of 2011 totaled $3.52 billion, compared to $2.09 billion in the second quarter of 2010. In the second quarter of 2011, capital expenditures were $917 million, the majority of which was related to land and building purchases, and IT infrastructure investments, including data centers, servers, and networking equipment. Free cash flow, an alternative non-GAAP measure of liquidity, is defined as net cash provided by operating activities less capital expenditures. In the second quarter of 2011, free cash flow was $2.60 billion.

    We expect to continue to make significant capital expenditures.

    A reconciliation of free cash flow to net cash provided by operating activities, the GAAP measure of liquidity, is included in the accompanying financial tables.

    Cash – As of June 30, 2011, cash, cash equivalents, and marketable securities were $39.1 billion.

    Headcount – On a worldwide basis, Google employed 28,768 full-time employees as of June 30, 2011, up from 26,316 full-time employees as of March 31, 2011. Net headcount growth (excluding approximately 450 employees hired as part of the acquisition of ITA Software) was similar to the first quarter of 2011.

    WEBCAST AND CONFERENCE CALL INFORMATION

    A live audio webcast of Google’s second quarter 2011 earnings release call will be available athttp://investor.google.com/webcast.html. The call begins today at 1:30 PM (PT) / 4:30 PM (ET). This press release, the financial tables, as well as other supplemental information including the reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, are also available on that site.

    FORWARD-LOOKING STATEMENTS

    This press release contains forward-looking statements that involve risks and uncertainties. These statements include statements regarding our plans to invest in our products and other new opportunities, our expected stock-based compensation charges, and our plans to make significant capital expenditures. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, unforeseen changes in our hiring patterns and our need to expend capital to accommodate the growth of the business, as well as those risks and uncertainties included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2010, which is on file with the SEC and is available on our investor relations website at investor.google.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2011. All information provided in this release and in the attachments is as of July 14, 2011, and Google undertakes no duty to update this information unless required by law.

    ABOUT NON-GAAP FINANCIAL MEASURES

    To supplement our consolidated financial statements, which statements are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP EPS, free cash flow, and non-GAAP international revenues. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures,” “Reconciliation from net cash provided by operating activities to free cash flow,” and “Reconciliation from GAAP international revenues to non-GAAP international revenues” included in the accompanying financial tables.

    We use these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our “recurring core business operating results,” meaning our operating performance excluding not only non-cash charges, such as stock-based compensation, but also discrete cash charges that are infrequent in nature. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to our historical performance and liquidity as well as comparisons to our competitors’ operating results. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.

    Non-GAAP operating income and operating margin. We define non-GAAP operating income as operating income plus stock-based compensation. Non-GAAP operating margin is defined as non-GAAP operating income divided by revenues. Google considers these non-GAAP financial measures to be useful metrics for management and investors because they exclude the effect of stock-based compensation so that Google’s management and investors can compare Google’s recurring core business operating results over multiple periods. Because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FASB ASC Topic 718, Google’s management believes that providing a non-GAAP financial measure that excludes stock-based compensation allows investors to make meaningful comparisons between Google’s recurring core business operating results and those of other companies, as well as providing Google’s management with an important tool for financial and operational decision making and for evaluating Google’s own recurring core business operating results over different periods of time. There are a number of limitations related to the use of non-GAAP operating income versus operating income calculated in accordance with GAAP. First, non-GAAP operating income excludes some costs, namely, stock-based compensation, that are recurring. Stock-based compensation has been and will continue to be for the foreseeable future a significant recurring expense in Google’s business. Second, stock-based compensation is an important part of our employees’ compensation and impacts their performance. Third, the components of the costs that we exclude in our calculation of non-GAAP operating income may differ from the components that our peer companies exclude when they report their results of operations. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP operating income and evaluating non-GAAP operating income together with operating income calculated in accordance with GAAP.

    Non-GAAP net income and EPS. We define non-GAAP net income as net income plus stock-based compensation less the related tax effects. We define non-GAAP EPS as non-GAAP net income divided by the weighted average outstanding shares, on a fully-diluted basis. We consider these non-GAAP financial measures to be useful metrics for management and investors for the same reasons that Google uses non-GAAP operating income and non-GAAP operating margin. However, in order to provide a complete picture of our recurring core business operating results, we exclude from non-GAAP net income and non-GAAP EPS the tax effects associated with stock-based compensation. Without excluding these tax effects, investors would only see the gross effect that excluding these expenses had on our operating results. The same limitations described above regarding Google’s use of non-GAAP operating income and non-GAAP operating margin apply to our use of non-GAAP net income and non-GAAP EPS. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income and non-GAAP EPS and evaluating non-GAAP net income and non-GAAP EPS together with net income and EPS calculated in accordance with GAAP.

    Free cash flow. We define free cash flow as net cash provided by operating activities minus capital expenditures. We consider free cash flow to be a liquidity measure that provides useful information to management and investors about the amount of cash generated by the business that, after the acquisition of property and equipment, including information technology infrastructure and land and buildings, can be used for strategic opportunities, including investing in our business, making strategic acquisitions, and strengthening the balance sheet. Analysis of free cash flow also facilitates management’s comparisons of our operating results to competitors’ operating results. A limitation of using free cash flow versus the GAAP measure of net cash provided by operating activities as a means for evaluating Google is that free cash flow does not represent the total increase or decrease in the cash balance from operations for the period because it excludes cash used for capital expenditures during the period. Our management compensates for this limitation by providing information about our capital expenditures on the face of the statement of cash flows and under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Quarterly Report on Form 10-Q and Annual Report on Form 10-K. Google has computed free cash flow using the same consistent method from quarter to quarter and year to year.

    Non-GAAP International Revenues. We define non-GAAP international revenues as international revenues excluding the impact of foreign exchange and hedging. Non-GAAP international revenues are calculated by translating current quarter revenues using prior quarter and prior year exchange rates, as well as excluding any hedging gains realized in the current quarter. We consider non-GAAP international revenues as a useful metric as it facilitates management’s internal comparison to our historical performance.

    The accompanying tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.

    Contact:
    Willa Lo
    Investor Relations
    +1-650-214-3381
    wlo@google.com

    Google Inc.
    CONSOLIDATED BALANCE SHEETS
    (In millions)
    As of
    December 31,
    2010*    		 As of
    June 30,
    2011
    (unaudited)
    Assets
    Current assets:
    Cash and cash equivalents $13,630 $10,320
    Marketable securities 21,345 28,798
    Accounts receivable, net of allowance 4,252 4,476
    Receivable under reverse repurchase agreements 750 1,020
    Deferred income taxes, net 259 153
    Income taxes receivable, net – 347
    Prepaid revenue share, expenses and other assets 1,326 1,328
    Total current assets 41,562 46,442
    Prepaid revenue share, expenses and other assets, non-current 442 465
    Deferred income taxes, net, non-current 265 –
    Non-marketable equity securities 523 893
    Property and equipment, net 7,759 9,003
    Intangible assets, net 1,044 1,381
    Goodwill 6,256 6,677
    Total assets $57,851 $64,861
    Liabilities and Stockholders’ Equity
    Current liabilities:
    Accounts payable $483 $567
    Short-term debt 3,465 1,217
    Accrued compensation and benefits 1,410 1,180
    Accrued expenses and other current liabilities 961 1,493
    Accrued revenue share 885 916
    Securities lending payable 2,361 1,936
    Deferred revenue 394 489
    Income taxes payable, net 37 –
    Total current liabilities 9,996 7,798
    Long-term debt – 2,985
    Deferred revenue, non-current 35 28
    Income taxes payable, non-current 1,200 1,469
    Deferred income taxes, net, non-current – 129
    Other long-term liabilities 379 461
    Stockholders’ equity:
    Common stock and additional paid-in capital 18,235 19,216
    Accumulated other comprehensive income 138 603
    Retained earnings 27,868 32,172
    Total stockholders’ equity 46,241 51,991
    Total liabilities and stockholders’ equity $57,851 $64,861

    * Derived from audited financial statements.

    Google Inc.
    CONSOLIDATED STATEMENTS OF INCOME
    (In millions, except share amounts which are reflected in thousands and per share amounts)
    Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
    2010 2011 2010 2011
    (unaudited)
    Revenues $6,820 $9,026 $13,595 $17,602
    Costs and expenses:
    Cost of revenues (including stock-based compensation expense of $8, $51, $14, $100) 2,467 3,172 4,919 6,107
    Research and development (including stock-based compensation expense of $202, $247, $393, $484) 898 1,234 1,716 2,456
    Sales and marketing (including stock-based compensation expense of $56, $74, $110, $152) 629 1,091 1,236 2,117
    General and administrative (including stock-based compensation expense of $43, $63, $83, $130) 461 648 871 1,244
    Charge related to potential resolution of Department of Justice investigation – – – 500
    Total costs and expenses 4,455 6,145 8,742 12,424
    Income from operations 2,365 2,881 4,853 5,178
    Interest and other income, net 69 204 87 300
    Income before income taxes 2,434 3,085 4,940 5,478
    Provision for income taxes 594 580 1,145 1,174
    Net income $1,840 $2,505 $3,795 $4,304
    Net income per share – basic $5.78 $7.77 $11.93 $13.37
    Net income per share – diluted $5.71 $7.68 $11.77 $13.19
    Shares used in per share calculation – basic 318,350 322,228 318,123 321,878
    Shares used in per share calculation – diluted 322,486 326,036 322,547 326,209

    Google Inc.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In millions)
    Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
    2010 2011 2010 2011
    (unaudited)
    Operating activities
    Net income $1,840 $2,505 $3,795 $4,304
    Adjustments:
    Depreciation and amortization of property and equipment 266 347 530 648
    Amortization of intangible and other assets 76 108 143 208
    Stock-based compensation expense 309 435 600 866
    Excess tax benefits from stock-based award activities (19) (9) (31) (33)
    Deferred income taxes 9 175 (4) 464
    Other – 19 2 55
    Changes in assets and liabilities, net of effects of acquisitions:
    Accounts receivable (243) (205) (197) (24)
    Income taxes, net (545) (171) (164) (98)
    Prepaid revenue share, expenses and other assets (34) (70) (191) (148)
    Accounts payable 79 50 199 77
    Accrued expenses and other liabilities 319 260 (75) 297
    Accrued revenue share 11 39 34 6
    Deferred revenue 17 36 28 69
    Net cash provided by operating activities 2,085 3,519 4,669 6,691
    Investing activities
    Purchases of property and equipment (476) (917) (715) (1,807)
    Purchases of marketable securities (12,934) (13,364) (25,421) (20,955)
    Maturities and sales of marketable securities 11,135 8,982 20,630 13,627
    Investments in non-marketable equity securities (227) (212) (230) (343)
    Cash collateral received (returned) related to securities lending 2,870 57 2,870 (424)
    Investments in reverse repurchase agreements – (445) – (270)
    Acquisitions, net of cash acquired, and purchases of intangible and other assets (229) (715) (419) (863)
    Net cash provided by (used in) investing activities 139 (6,614) (3,285) (11,035)
    Financing activities
    Net proceeds (payments) related to stock-based award activities 39 (28) 1 88
    Excess tax benefits from stock-based award activities 19 9 31 33
    Repurchase of common stock in connection with acquisitions (704) – (801) –
    Proceeds from issuance of debt, net of costs – 5,846 – 8,030
    Repayments of debt – (4,869) – (7,304)
    Net cash provided by (used in) financing activities (646) 958 (769) 847
    Effect of exchange rate changes on cash and cash equivalents (57) 42 (100) 187
    Net increase (decrease) in cash and cash equivalents 1,521 (2,095) 515 (3,310)
    Cash and cash equivalents at beginning of period 9,192 12,415 10,198 13,630
    Cash and cash equivalents at end of period $10,713 $10,320 $10,713 $10,320

    Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures

    The following table presents certain non-GAAP results before certain material items (in millions, except share amounts which are reflected in thousands and per share amounts, unaudited):

    Three Months Ended June 30, 2010 Three Months Ended June 30, 2011
    GAAP Actual Operating
    Margin (a)    		 Adjustments Non-GAAP
    Results    		 Non-GAAP
    Operating
    Margin (b)    		 GAAP Actual Operating
    Margin (a)    		 Adjustments Non-GAAP
    Results    		 Non-GAAP
    Operating
    Margin (b)
    $309 (c) $435 (d)
    Income from operations $2,365 34.7% $309 $2,674 39.2% $2,881 31.9% $435 $3,316 36.7%
    $309 (c) $435 (d)
    (70) (e) (91) (e)
    Net income $1,840 $239 $2,079 $2,505 $344 $2,849
    Net income per share – diluted $5.71 $6.45 $7.68 $8.74
    Shares used in per share calculation – diluted 322,486 322,486 326,036 326,036
    (a) Operating margin is defined as income from operations divided by revenues.
    (b) Non-GAAP operating margin is defined as non-GAAP income from operations divided by revenues.
    (c) To eliminate $309 million of stock-based compensation expense recorded in the second quarter of 2010.
    (d) To eliminate $435 million of stock-based compensation expense recorded in the second quarter of 2011.
    (e) To eliminate income tax effects related to expenses noted in (c) and (d).

    Reconciliation from net cash provided by operating activities to free cash flow (in millions, unaudited):

    Three Months Ended
    June 30, 2011
    Net cash provided by operating activities $3,519
    Less purchases of property and equipment (917)
    Free cash flow $2,602
    Net cash used in investing activities* $(6,614)
    Net cash provided by financing activities $958

    * Includes purchases of property and equipment.

    Reconciliation from GAAP international revenues to non-GAAP international revenues (in millions, unaudited):

    Three Months Ended
    June 30,
    2011    		 Three Months Ended
    June 30,
    2011
    (using Q2’10’s FX rates) (using Q1’11’s FX rates)
    United Kingdom revenues (GAAP) $976 $976
    Exclude foreign exchange impact on Q2’11 revenues using Q2’10 rates (81) –
    Exclude foreign exchange impact on Q2’11 revenues using Q1’11 rates – (29)
    Exclude hedging gains recognized in Q2’11 – –
    United Kingdom revenues excluding foreign exchange and hedging impact (Non-GAAP) $895 $947
    Rest of the world revenues (GAAP) $3,895 $3,895
    Exclude foreign exchange impact on Q2’11 revenues using Q2’10 rates (336) –
    Exclude foreign exchange impact on Q2’11 revenues using Q1’11 rates – (138)
    Exclude hedging gains recognized in Q2’11 (4) (4)
    Rest of the world revenues excluding foreign exchange and hedging impact (Non-GAAP) $3,555 $3,753

     

    The following table presents our revenues by revenue source (in millions, unaudited):

    Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
    2010 2011 2010 2011
    Advertising revenues:
    Google websites $4,499 $6,232 $8,938 $12,111
    Google Network Members’ websites 2,063 2,484 4,099 4,911
    Total advertising revenues 6,562 8,716 13,037 17,022
    Other revenues 258 310 558 580
    Revenues $6,820 $9,026 $13,595 $17,602

     

    The following table presents our revenues, by revenue source, as a percentage of total revenues (unaudited):

    Three Months Ended
    June 30,    		 Six Months Ended
    June 30,
    2010 2011 2010 2011
    Advertising revenues:
    Google websites 66% 69% 66% 69%
    Google Network Members’ websites 30% 28% 30% 28%
    Total advertising revenues 96% 97% 96% 97%
    Other revenues 4% 3% 4% 3%
    Revenues 100% 100% 100% 100%

     

     

    A conference call is scheduled for 4:30 Eastern. A webcast will take place here.

  • Q2 Report: Online Advertising Strong Across All Channels

    Online advertising spend showed a strong second quarter across all channels despite continuing uncertainties from the economy and higher gas prices, according to a new report from IgnitionOne.

    The report is based on a survey of digital media that showed increases in year-over-year spend across paid search, display advertising, and Facebook. Facebook advertising, the firm says, was particularly strong.

    This would somewhat reflect another recent report from MerchantCircle, which found that Facebook ads are gaining popularity among small businesses.

    According to the IgnitionOne survey, Facebook advertising spend is up 22% year-over-year on a same-client-basis, with impressions up 11%.

    Facebook Ads

    “However, Facebook advertising has experienced high rates of growth from new marketer adoption in the past year, contributing a 280% increase in spend across all clients, and 200% increase in impressions YOY,” IgnitionOne tells WebProNews. “Spending patterns within an advertiser’s campaign lifecycle show marked growth declines after the first few months, suggesting advertisers are still in a ‘test and learn’ phase with the new and immature ad platform.”

    Despite the increasing success of Facebook ads, Google was still the “standout performer,” according to the firm. Google showed grew to 80% share of all U.S. search advertising spend in Q2, compared with Yahoo/Bing at 19% share. “Google also saw dominating growth in other key search metrics, including impressions, clicks, CTR and eCPM,” the firm tells us. “Google’s AdEx commands 51% share of U.S. RTB display spend, compared to Yahoo!’s Right Media at 49% share. This marks a significant jump in Google’s market share in display YOY.”

    It will be interesting to see how a jump in market share might impact a pending Department of Justice probe of Google’s pending acquisition of ad-optimization platform AdMeld. The investigation is aimed at determining if Google’s dominance in search advertising could make this an anticompetitive buy, and will examine Google’s plans for expansion strategies related to the acquisition. Google, of course, says that this is not an anti-competitive acquisition.

    “The acquisition is designed to help publishers get the most from the rapidly growing display advertising industry, which is both complicated and incredibly competitive — the emergence in recent years of a huge variety of technologies for publishers, like Admeld’s, is great evidence of that,” a Google spokesperson is quoted as saying. The Federal Trade Commission has since launched its own antitrust investigation into Google’s broader business practices.

    U.S. paid search spend grew a steady 12% year-over-year in Q2, and was flat compared with Q1 growth, according to IgnitionOne. “The quarter began strong, but dipped sharply in June to nearly flat growth on a YOY basis,” the firm says. “While this decline did not have a significant impact on the quarter overall, it could be an indicator of future months’ performance, and expectations for Q3 are cautiously optimistic.”

    Google launched its latest attempt at a social network today. While it is being released under the veil of an early-stages project, it will be interesting to see what impact it might have on Google’s advertising offerings in the months and years ahead.

  • Google Launches Search By Image

    Google announced the launch of a new image search feature today, which actually lets you search by an image itself, rather than text. Like voice search, this has been available on mobile for some time (via Google Goggles), but now it’s coming to the desktop.

    Google explains on its Inside Search blog:

    You might have an old vacation photo, but forgot the name of that beautiful beach. Typing [guy on a rocky path on a cliff with an island behind him] isn’t exactly specific enough to help find your answer. So when words aren’t as descriptive as the image, you can now search using the image itself.

    To search using an image, go to images.google.com and just put your picture in the search box. There are many ways to do this. You can click the camera icon in the search box and upload a photo from your computer or paste the URL of an image from the web. You can also drag and drop pictures from webpages or your computer into the search box. To search images on the web even faster with just one click, you can download the Chrome or Firefox extensions.

    Search By Image

    Google says the feature returns the best results for images that have related content already on the web, so you’ll be more likely to get relevant results for landmarks, paintings, and things like that, as opposed to images of your family. This is pretty standard for Google Goggles already.

    Google made it clear at its Inside Search event that it does not use facial recognition technology, surely thwarting any potential privacy complaints.

    The feature is rolling out globally today.

  • PriceGrabber Gets Into Local Deals

    PriceGrabber Gets Into Local Deals

    Yet another player has entered into the daily deals space. This time it’s PriceGrabber, which has just announced the launch of a new local deals category. PriceGrabber’s angle is actually to let consumers search through thousands of daily deals from over 20 other group buying sites like Groupon, LivingSocial, etc. I’d imagine this will expand along with the space itself.

    Aggregation is going to become more important in this space as so many players enter the game, and so many deals come out on a daily basis. A representative for PriceGrabber tells WebProNews, “PriceGrabber survey data shows 44% of online consumers search daily deal websites but 52% of shoppers feel overwhelmed by the number of emails they receive from group buying sites.”

    “Eighty-six percent of respondents indicated that when they find a great deal, they share the information with friends and family,” she adds.

    Experian-owned PriceGrabber, which is currently seeing over 3 million unique monthly visitors , and had over 6 million around the holidays (Compete), covers over 160 metropolitan areas, which are updated several times throughout the day.

    “With the explosive growth in the local deals category, PriceGrabber saw the opportunity to save consumers money and time and present local deals all in one place,” said Graham Jones, general manager of PriceGrabber.com. “For the past 10 years, PriceGrabber has been perfecting the process of aggregating the best prices on millions of products from thousands of merchants. So getting into the daily deal space was a natural progression for us. We are simplifying the local deals industry so shoppers can find the most relevant offers to fit their interests and needs in their local market.”

    PriceGrabber Deals

    The service lets customers select their areas of interest and get one daily or weekly email covering all of the deals services. On the site at deals.pricegrabber.com, you can filter the deals not only by location, but buy category, such as: active life and fitness, beauty and spas, education, family and kids, food and dining, home and personal services, and shopping.

    You can also filter by price and by group buying site.

    According to PriceGrabber, 23 million American bought daily deals last year.

  • Delegating Your SEO Tasks Into a Successful SEO Campaign

    For a lot of people, running a business is about making money. But, for me there is so much more to running my company than that. Sure, I love the opportunity to create profits, but I also love that I can do what I love, set my own schedule, and work with some of the best people in the industry.

    I also enjoy trying to build the very best business possible. I want to see my clients succeed. I always tell them, it’s in our best interest that the work we do for them is profitable. If it isn’t, we lose a client!

    As a manager, I want to see my team succeed. I want to give them the opportunity to build their strengths, and explore new areas, all while trying to create an environment where they do not dread coming to work on Monday morning.

    Very few people are an island amongst themselves, and even fewer have succeeded solely on their own. I admire many of the sole practitioners in the SEO industry, but frankly, I don’t understand how they do it. It is a very difficult role to be an expert in SEO, link building, copywriting, analytics, PPC, social media, conversion analysis and coding all at once. Not to mention the time spent blogging, reporting, reading, analyzing, testing, and keeping up with the latest industry changes. That sounds like several full-time jobs to me, so kudos to those that can do it all!

    I figure they either have more hours in the day than I do, or they are getting paid an hourly rate which I have yet to attain!

    But, the job I particularly enjoy is the role of Project/Client Manager. As much as I love everything about SEO, I love running the business even more. As our company has grown, it’s taking quite a bit of an effort for me to let go of the old jobs and delegate those responsibilities to others. But, I can’t do it all. This, after all, is the purpose of having a team.

    A Cord of Three Strands is Not Quickly Broken

    D.L. Moody once said, “You can do the work of ten men, or get ten men to do the work.” For a business owner, doing the work of ten men yourself has its advantages. It puts more money in your pocket while also building feelings of pride and self-accomplishment. You have no one to blame for mistakes, and you can make sure the job gets done right the first time.

    The gains with such a do-it-all-yourself mentality can be substantial. But, what you lose is often far more valuable than what you gain.

    I used to not mind working 10-12 hours a day, but over the past couple of years, I realized that I wasn’t leaving much time for my kids. Not as much time as they would have liked, anyway.

    Several years ago I talked to a very successful business woman about her company. She told me that she decided early on that she was not going to work more than eight hours in a day. Today she flies all over the country and performs seminars for business owners looking to capitalize on their wealth, but is still determined to keep her workload to something that can be managed in those 40 hours each week.

    This flies in the face of the mentality of most small business owners, including mine at that time. We’re told that you have to put in 50-80 hour work weeks in order to succeed. Maybe this is true for a lot of small businesses, but unfortunately, once most start down that path, they find it hard to slow down and start delegating responsibilities. This, I believe, hinders their growth potential and leads to stress, burnout, and, in many cases, a lot of problems in their personal lives.

    I think the goal of any business owner should be to grow their business to the point where the business operates effectively without their involvement. The owner continues collect a paycheck from their investment, while doing very little of the ongoing work.

    I know this is my goal, at least.

    That means that I have to focus more on growing the company and less on doing the work of the company. I make it a point to find good people that know (or can learn) more than I do about key service areas we offer. I might be able to be really good at any number of things, but I can’t be an expert in all of them. So I’ll find someone who is.

    Learning the Art of Delegation

    I never read the book Robin Hood, but years ago a friend of mine who did told me something interesting about the story. Robin would never let anyone into his gang that couldn’t beat him in a fight. If Robin could kick their butt, they were out. But, if they could kick his, then they were welcomed in.

    I try to use that same principle with my business. I want to hire people who do (or are capable of) knowing their area of expertise better than I do. Hiring this way ensures I get quality people and I have less to worry about when delegating responsibilities to them.

    Unfortunately, too many business owners and managers are unable–or unwilling–to delegate responsibilities, despite the fact that this often holds them back from greater success.

    There are four main reasons people don’t delegate:

    Fear of losing authority

    One of the greatest fears managers and bosses have is that their employees may end up knowing more about something than they do. Once this happens, they fear, the employee will leave the job for greener pastures, demand more pay, or worse, take their job title from them.

    Poor managers combat this by holding on to certain jobs and over burdening themselves with busy work that would best be handled by someone else. By being fearful of losing position, or power, the inadvertent result is a sabotaging of the business.

    Delegation requires trusting others to make important decisions and allowing them to gain the knowledge and the skills necessary to do that without your input. That can be a scary thing.

    Fear of work being done poorly

    It’s often very true that if you want something done right, you have to do it yourself. But at the same time, if you don’t want to have to do everything yourself, you’ve got to delegate tasks to others.

    Will they ever fail? Yes. Will they cause delays, loss of money, and even lose a client or two? There is certainly that risk. But, there is no reward without a bit of risk attached. Properly implemented delegation can take small risks and turn them into far greater rewards.

    Fear of work being done better

    Pride can be a very strong inhibitor to doing the right thing. Smart business people surround themselves with people that have potential to shine, and help them achieve greatness!

    While he was president, Ronald Reagan had a plaque in the oval office that read, “There is no limit to what a man can do or where he can go if he doesn’t mind who gets the credit.” People in leadership positions often want the credit for their leadership capabilities. However, delegating means that somebody else might be recognized for a job well done that you may have had a strategic hand in.

    You can see that as someone else taking credit away from you, or see it as a credit to yourself for helping this person get such accolades. Instead of being afraid that someone below you will get rewarded for a job well done, you can take credit for finding, training, and building a team that is extraordinary.

    If you’re worried about losing your position, then chances are you’re not doing what you need to do to keep it.

    Unwillingness to take the necessary time

    I’m a very task-oriented person. I know what needs to be done, know how to do it and can do it faster than anybody else I know. (I’m humble, too!) That means I have little patience when others I’ve delegated tasks to are not as quick as I am.

    Therein lies the difficulty in delegating. You usually only do it when you can’t handle the workload any more and, by that time, you’re so swamped you don’t have the time to bring someone new up to speed.

    But, this is also why delegating early is so important. By delegating, each task may take more time individually, but collectively you get a lot more done in the same amount of time. Doing the work of ten men may seem noble, and give you a nice boost in pride, but it’s been said that nobody lies on their deathbed wishing they had spent more time at work!

    Whether you’re running an online business, are a marketing manager or perhaps managing an SEO firm, delegating your SEO responsibilities isn’t just about freeing up your time to do more things outside of work (clearly a benefit), it’s also about freeing up your time at work to be the brains rather than the brawn. Letting others do the “important” operational tasks frees you up to provide more oversight, develop new ideas and make your company more profitable.

    Theodore Roosevelt said, “The best leader is the one who has a sense to pick good people to do what he or she wants done, and enough self-restraint to keep from meddling with them while they do it.” Good SEO delegation creates a business far greater than the sum of its parts.

    Originally published on E-Marketing Performance

  • Social Search Is A Matter Of Trust Not Technology

    There’s been a lot of commotion recently about the integration of social signals into the search results of both Bing and Google. Bing has the upper hand with those signals coming from Facebook while Google is still Google, and is still the search engine of choice worldwide, regardless of what signals they have or don’t have.

    My question is not so much about who will win this game. Google is the 800-pound gorilla that Bing has to move in some direction so it can make any progress. That alone is a daunting task. However, add into the mix that Bing actually already delivers better results (in many opinions) on certain searches that go beyond the blue link text results and you can see that this mountain is about more than a better service.

    The problem facing Bing is that no matter what strides they make in product there are not enough people taking a deep enough dive into the engine to be convinced that they should stop trusting Google results. Because in the end, search is about trust.

    This trust element is one that lives within all of us. Trust requires an investment on a person’s part. An investment with something more valuable than money. It’s an investment of some part of that person. It’s more personal than we in this tech-fueled era tend to give credit to.

    It’s this trust issue that makes me wonder just how important social search will actually be. Why? Because taking a cue from someone else about a problem you are trying to solve requires trust. Trust is not something that is easily given by anyone to anyone else. It’s serious business. It can only occur where there is a bond that goes beyond “Hi how are you doing?”

    It seems that Google and Bing are banking on people trusting more readily. The trouble is, that we have watered down the meaning of friend to the point where it is almost unrecognizable to what it was a mere 10 years ago.

    I have a relatively low number of Facebook friends (although I am still above the stated average of 130) but many aren’t more than acquaintances, and that’s with me being very careful about who I accept. As a result, my level of trust with these friends does not come anywhere near the level of the small circle of truly trusted people in my life.

    Back to social search. Google is now making social search a global play, so social signals for me will come from people I may not even know at all. How is that helpful to me or to anyone? Bing is more targeted toward Facebook but, as I stated before, even my Facebook pool of friends is not exactly the most trustworthy source of information for me.

    So, in the end, social search is more about trust than it is about social signals. The term “social signal” is as clinical a term as you can have when talking about relationships, so I have no great expectations that my social media friends will send a great signal.

    As a result, I don’t hold out much hope for social search for someone like me. It may be fun and it might make me see things a bit differently in a particular instance, but it’s not something I will dive into. Why should I? If I want real opinions about things that really impact me, I have a few people that I can have actual conversations with who will help give me more than a signal regarding my needs.

    Social search’s success will be dictated and possibly limited by the level of trust that someone is willing to hand over to a group of friends. Initially, this will be easy for the younger crowd because they will have grown up steeped in this social world. Will it stay that way? No. Because never before in human history has there been more opportunity to abuse trust and it will ultimately make people less trusting than ever.

    Dark view? Maybe, but I know from my 47 years on the planet that trust is something that is earned. When it is handed out to all and not given the right amount of value it will lead to disappointment more often than not. This is just a fact and it will be a hard one for the social Web to learn, but it will. And it will hurt.

    Originally published at Biznology

  • Why Time is a Big Factor in Big-Time SEO Success

    To know the value of one year – ask the student who failed their final.
    To know the value of one month – ask the mother of a premature baby.
    To know the value of one week – ask the editor of a weekly magazine.
    To know the value of one day – ask the wage earner with six children.
    To know the value of one hour – ask the lovers who are waiting to meet.
    To know the value of one minute – ask the person who missed the plane.
    To know the value of one second – ask the person who survived the accident.
    To know the value of one millisecond – ask the Olympic silver medalist.
    –John Maxwell

    In SEO and SEM, time management is critical. Almost anybody in the industry will tell you that you can spend countless hours “tweaking” a website, looking at traffic analysis and conversion stats, and employing link building campaigns. These are all essential parts of a good SEO service, but at the same time, some limits have to be placed on the amount of time you will spend on these activities for any single client.

    Newer clients, or those that have a lot of problems, need to have more time dedicated to each of the activities above. Yet, the SEO has to maintain a workable time budget in order to prevent profits from circling the drain.

    We often find ourselves needing more time in the day to get things done. I know I’ve wished for more. I honestly don’t know how people much busier than me do it. I have the same 24 hours to use each day as Trump or Obama have.

    When I go home after a full day of what feels like non-stop rushing to manage one client after another, I often think about how these guys must feel. They have much more responsibility than I, but still the same number of hours in which to get stuff done, and always seem to find time for golf!

    If I could have one wish, it would be to have more hours in the day and to require less sleep each night. OK, that’s two wishes, but I’d settle for either one of those (preferably the latter.)

    Value Add or Cost Add?

    When a client asks, “What more can we do to stay ahead of our competitors?”, one of the first things I do is look at their current contract. If the plan they have has any areas of weakness, I’ll let them know what more can be done to reach their goals. Inevitably, it is based on their willingness to invest in the additional time and resources required for a more aggressive campaign.

    Unfortunately, that usually ends the conversation for some clients.

    When they are asking “What do we have to do?” What they really mean is, “What more will you do?” I’m always willing to do more, but there is that pesky issue of our time and whether we’re willing to work for free or not. Usually not.

    I never mind providing a value-added service every now and then. Sometimes we’ll do less of one thing so we can do more of another. But, eventually there comes a point of diminished profits, unless the client is willing to step up and pay for what they want us to help them achieve.

    Accurately Budgeting Time for Process and Results

    Whenever I put together a proposal for a prospective client, my goal is to estimate the number of hours that will be needed over the contract’s duration. This includes one-time only tasks, monthly tasks, and yearly tasks. All of that gets thrown in to create an estimated number of hours that we then use to figure a monthly pricing level.

    That becomes our benchmark, and we use it with the knowledge that clients will occasionally need more time spent each month on a task (especially in the early months), and less time in other months.

    Trying to accurately predict the number of hours needed over the next 12 months can be daunting. I have to look beyond time spent on research and implementation. Both ongoing consulting and client communications factor in a great deal, as does analysis. Most clients don’t realize that every call or email requesting a status update is time that is taken away from research, analysis and implementation.

    Every SEO must determine how much consulting time will be factored into the campaign cost. Ultimately, the client wants, and needs, to feel taken care of. Failure to factor in consulting and management into pricing will reduce campaign performance, or create a client that feels out of the loop. Both can be hazardous to client satisfaction.

    Time management, regardless of your field, becomes one of the most important aspects of your professional and personal life. It affects what you can do and what your client feels you should do. Those that don’t manage their time wisely are doomed to fail.

    If the SEO wants to be successful – and if the client wants the SEO to be successful – then both must consider the time involvement in any new task or request being made. These things add up and eventually, if left unchecked, can tip the scales in bringing both the SEO and the client into unprofitable territory. This is a lose/lose scenario. But, if both manage time expectations and costs, both the SEO and the client and be in a win/win situation that will bring big-time success.

    Originally published on E-Marketing Performance

  • Google Government Issues Galore!

    Google Government Issues Galore!

    With Google I/O currently going on, there is a ton of Google-related news coming out. We provided a round-up of announcements here (and here’s today’s Chrome announcements), but there is also a lot of non-I/O Google news circulating today.

    Google had a $500 million charge“in connection with a potential resolution of an investigation by the United States Department of Justice into the use of Google advertising by certain advertisers.” This was revealed in a newly public SEC filing, and was not reported in Google’s recent earnings report.

    The Wall Street Journal reports that Google told regulators in India that proposed Internet content restrictions in that country could hamper the company and others by making them liable for content published by others.

    According to the WSJ, the rules require sites to remove objectional content and ISPs and social networking sites to “bar certain types of content under terms-of-service agreements with users. Sites would be responsible for removing such content within 36 hours of being notified by authorities.

    Meanwhile, in Belgium, an appeals court reportedly upheld ruling against Google, finding that Google infringes upon the copyrights of newspapers by displaying and linking to content form newspaper sites. Google apparently can’t link to material in Belgian papers in French.

    Here in the U.S. representatives from Google (along with reps from Apple) told a Senate committee that their policies protect user privacy in a conversation. This is in relation to the location privacy issues discussed here.

    PaidContent quotes Google’s head of public policy Alan Davidson as saying, “It’s not just about convenience. Location-based services can let you know where to fill a prescription at one in the morning for a sick child.”

    In Nevada, Google is lobbying for self-driving cars to be legal.

  • YouTube Adding 3,000 Movie Titles, Increasing Investment in Partner Content

    YouTube announced today that it is adding about 3,000 new movie titles for rent in the U.S. as well as some new original content from partners as part of the “future of video”.

    The movie titles, the company says, will be accompanied by reviews and behind-the-scenes movie extras. “Whether it’s short movie trailers, funny movie parodies or full-length blockbuster films, we encourage you to sit back and settle in to the YouTube movies experience,” writes Head of YouTube Salar Kamangar.

    He says YouTube is bolstering its investment in partner content as well. “Our 20,000+ partners—folks like Machinima, Annoying Orange and Ryan Higa—are producing original content for the web and commanding TV-size audiences for their own brand of programming,” he says. “Through YouTube Next, we’re helping fuel the creation of this type of content with initiatives like the YouTube Creator Institute and YouTube NextUp, following past initiatives like Partner Grants(which brought us Key of Awesome, creators of one of 2010’s most-watched videos) and $1,000 B&H Photo credits. In the coming year, we’ll bring even more content to YouTube. Building on the success of Partner Grants and YouTube NextUp, we’re providing even more resources to creators who you’ll know from TV or Hollywood, and to existing YouTube partners who have already built loyal audiences on the site. Look out for more details on this in the coming months.”

    More details about YouTube’s movie plans should be made available later today.

    YouTube Expands Movie Offerings

    Google I/O, the company’s developer conference kicks off this week, and developments around Android, Chrome, Chrome OS, and Google TV are expected. It will be interesting to see what kinds of YouTube-related news is sprinkled in there (particularly in relation to Google TV).

    It will be very interesting to see how YouTube fares in movie rentals, particularly as Facebook becomes a destination for this activity (another area where we’re bound to see increasing competition between Google and Facebook), and as YouTube is performing better in Google search results, since the Panda algorithm update. Will we see YouTube movie rentals appear in prominently in generic searches for specific films?

    YouTube also recently announced YouTube LIve, a new destination for live streaming video options, and a platform it is sharing with select partners to provide live video. The site has already provided users with access to live streaming of the Royal Wedding, the Coachella festival, and soon a live concert film experience for the band My Morning Jacket, to name a few.

    With recently released media ads for AdWords, and video sites in general faring well post-Panda update, Google search ought to be a bigger entry point for online video views than ever before.