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The adCenter/Yahoo Search Marketing Merger: Should We Be Scared?

The Top 5 Scariest Things about the adCenter/Yahoo Search Marketing Merger

The adCenter/YSM merger could be a scary turn of events!

Anyone with a pulse and a Yahoo Search Marketing (YSM) or Microsoft adCenter account is aware of the upcoming merger between the two platforms. There is a lot of speculation and conjecture about what will become of online advertising campaigns driven by these channels and information from Yahoo and Microsoft has been unsatisfying at best. One thing is certain, though, the potential for disaster here is real and that’s very, very scary.

Yahoo and Microsoft have competed somewhat less than admirably with Google in the battle for online ad supremacy. Many factors have played a role. Google has had a stranglehold ondomestic search market share and this has led advertisers to think of AdWords as a means of reaching consumers well before YSM and adCenter. Google has also actively and continually upgraded the AdWords interface and tools. This has led to people with limited marketing or technical knowledge gaining confidence in running their own campaigns. Yahoo and Microsoft, have been much slower in rolling out improvements.

Because of this, there is a huge disparity in the usability and functionality of the big three search marketing channels. Google, with its incredibly user-friendly AdWords interface, along with its host of tools (e.g. keyword tooldesktop editorad planner) and reporting options has distanced itself as the clear number one; YSM is a distant second. However, what many people who haven’t worked with adCenter with a complicated account don’t know is that adCenter is at least as far behind YSM as YSM is behind AdWords.

The upcoming deal between Microsoft and Yahoo will mean that adCenter will be taking over for YSM. The accounts will be reconciled somehow and users that had an AdWords account, a YSM account and an adCenter account will be left only with AdWords and adCenter accounts. With this in mind, I present to you…

The Top 5 Scariest Things about the adCenter/Yahoo Search Marketing Merger:

FeYNk The adCenter/Yahoo Search Marketing Merger: Should We Be Scared?

Juggling accounts is tougher in adCenter than YSM or AdWords

5. Difficulty Managing Multiple Accounts: Okay, this one is more likely to affect agencies and a small handful of clients than the average advertiser, however, it’s still a problem. In AdWords, the Master Client Center makes separating and managing multiple accounts a breeze. You can link, unlink and link back accounts with ease and in seconds. No paperwork is necessary, billing is kept separate and API access is easy to engage. Yahoo’s Master Account system is flawed in its inability to unlink already linked accounts, but it still beats logging in and out of different accounts and keeps all of the accounts managed in one place without paperwork. With adCenter, there are several limitations. First of all, a single credit card can only be associated with five accounts. I’ve not heard an explanation for this but it has posed problems for our clients in the past. Second of all, adCenter’s version of a Master Client Center is burdensome to set up, requiring IOs be sent to all parties and making it difficult to link in already existing accounts. It’s not that it’s impossible to work with Microsoft, it’s just that it seems to be more difficult than it needs to be, certainly much more difficult than with Google. Because of the market share discrepancies between Google and Bing, many advertisers may just focus on Google and ignore adCenter altogether. I hope that Microsoft will realize that although Yahoo’s system is not perfect, it’s better than what adCenter currently has.

4. Lack of Revenue Tracking: It’s 2010 and an advertiser still can’t track revenue with adCenter’s conversion tracking pixel. It’s a cinch in Yahoo and it’s even easier in Google. Google even makes tracking multiple conversion types (e.g. leads, sales, newsletter signups) easy to do. Most agencies get around this by using a third-party or proprietary tracking pixel but that’s not an option for many independent advertisers. Many advertisers will use Google Analytics to sort out their revenue tracking, and that’s a fine option, but it makes management of adCenter that much less efficient. Whereas in AdWords and YSM one can clearly see revenue numbers right along side keywords without running a report, adCenter users will have to dart back and forth between their analytics and their keyword bids. This sort of hassle could lead advertisers to shy away from adCenter altogether or to simply run campaigns at low spend for fear of inefficient allocation of resources.

U20ok The adCenter/Yahoo Search Marketing Merger: Should We Be Scared?

Welcome to adCenter… unless you aren’t using IE, of course.

3. Browser Incompatibility: About60% of Internet users in the United States use Internet Explorer. That’s good news for Microsoft because Internet Explorer is the only browser that works properly with adCenter. The bad news is that that still leaves a huge 40% chunk of Internet users that don’t use Internet Explorer. If those users want to continue to advertise in Yahoo and/or Bing without potential incident, they may have to choose to abandon their favorite browser**. To date, Microsoft has just assumed that users would kowtow to this ridiculous demand, however, with Microsoft reinvesting in search, it would make sense that they would take a cue from Yahoo, Google and the rest of the Internet and make sure that everyone can use adCenter, regardless of browser or computer type. By the way, did I mention that none of the desktop tools work with Macs? Because they don’t! If Microsoft has taken pains to make sure that Bing works on every system, ensuring that users can click on ads displayed in Bing so that Microsoft can make money, why hasn’t Microsoft taken the same tact with their advertising interface? Will this change with the merger? We can only hope.

2. Weak Support: We have a customer support representative at Microsoft who is pretty terrific; he’s exceptionally competent and he’s timely with his responses. Unfortunately, whenever he has to pass us along to someone else-which is often the case with adCenter-it’s usually the beginning of a wild ride. I’ve had situations where getting a client’s working credit card off of credit hold has taken over a week and three different handoffs to different support representatives. I’ve tried using the general support channels with adCenter and the results are even worse. Furthermore, Microsoft establishes the level of support that one can access when the account is created. I’ve asked for help with a client’s account and been told, “When I ran this particular account by my business desk I was told this falls into our standard support tier. For future support questions about support of this account, you’ll need to go through the adCenter standard support queue.” This would be an unfathomable circumstance in Yahoo and Google where our reps fall over themselves trying to be of assistance. Since most users will be forced to use the general support channels anyway, this may not concern to them, however, the attitude toward customer service at Microsoft is certainly much more focused on passing off customer issues than solving them. A lot of people will have a lot of issues at the time of the merger; will Microsoft be up to the customer service challenge or will it lose even more advertisers to Google-only marketing campaigns?

How slowly will Microsoft roll out changes after the merger?

1. Slowness to Upgrade: Google never rests when it comes to finding ways to improve. “If it ain’t broke, don’t fix it,” is not an aphorism that you’ll find posted anywhere on Google’s Mountain View campus. Google has the best product but they constantly strive to improve it, widening the gap between AdWords and YSM and adCenter month after month. Yahoo and Microsoft have been slower on the uptake. I hope against hope that Microsoft will address the aforementioned concerns with the merger, however, if the past is any indication of the future, the resulting YSM/adCenter hybrid will rest on its laurels for quite a while afterwards. Do me a favor: without using a desktop tool, try to change the default bid in ten ad groups in AdWords, then YSM, then adCenter. That operation will take about 20 seconds in AdWords, about 30 seconds in YSM and at least 5 minutes in adCenter… and this is a known problem! How much faith can we have that Microsoft will have timely solutions for all of the problems that will arise from the merger and the problems that will develop thereafter? In my mind, a problem doesn’t even have to be an impediment to advertising, it can simply be a shortcoming for which Google offers an easier solution and there are countless examples of this. No matter how much improvement comes from this merger, the eventual success or failure will depend on the amount of resources that Microsoft dedicates to keeping the new adCenter a viable competitor to AdWords. Thus far, Microsoft has seemingly ignored adCenter, despite the launch of Bing. If adCenter is going to have a future, that will have to change in a big way.

There are three things of which I am certain with regards to the upcoming merger between the YSM and adCenter platforms: it’s definitely going to happen, it’s going to be a little dicey at first when it does and it’s absolutely terrifying to speculate on how much can go wrong. For as much as I have been disappointed by adCenter to date, I still hold out hope that this merger is a good thing. Google needs competition from a real peer in order to better the search marketing medium for customers and advertisers alike and Microsoft is that caliber of peer. If Microsoft can realize how important the search space can be, then this frightening upcoming event could end up being the best thing to happen to search marketing since conversion tracking. Until it happens, though, I’ll be watching the events as if I were watching It when I was five years old.

**Firefox tends to work in a somewhat buggy fashion with adCenter, but there is no guarantee that it will work at all in the future or after the merger.

-Michael Block

Originally from Wpromote, Inc. PPC Management. Cross-Posted with permission.

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  • Manishsh

    I think you have been paid to write this article. …and I am assuming that you have used neither. Bing by far is the most cost effective way of reaching customers with a dramatically higher conversion rate than the abysmal and unpredictive google adwords….where the affliate marketing can suck you dry with robotized clicks which even google cant track. The game has just begun my dear friend.

  • Adam

    Well said Manishsh , this guy is being paid.

  • Chaoley

    No, he's not being paid, he's got it 100% right

  • http://twitter.com/mblock Michael Block

    Manishsh, I can assure you that I haven't been paid to write this article. I never expected that The Faster Times would even run it. I am pleasantly surprised, though, that they did.I have no qualms at all with the results that adCenter can deliver, which can, on the small scale, outperform YSM and AdWords. I object only to the problems with the interface and the overall user experience. If I am wrong about adCenter's inability to track revenue, manage multiple accounts or to work with browsers outside of IE, then I would entertain your objection. I don't believe that I am mistaken and I object to your incorrect assertion that I was paid to write this article.

  • http://www.gpscomparisonreview.com gps comparison

    Adwords interface is definitely better. I would say that 80% of my profits come from Adwords. However I am also fearful that my days may be numbered judging from the complaints on the internet about Adwords accounts being banned for life. All these people get are canned replies with no chance to appeal.My experience with the adcenter customer support team has been very pleasant. They are exceedingly prompt and thorough. I only wish that MSN can send me more traffic.Ya I agree that the adcenter web-based adcenter interface is SLOW. The desktop version is much better though functions are quite limited. However, it stopped working for me due to some technical issues. Due to my busy work, I've stopped adding new campaigns.Just checked my adcenter stats and to my dismay, most of the CPC costs have gone up after the alliance, some almost by 100%! I've paused these old campaigns trying to make some sense out of the statistics.Oh well.. I will have to get Adcenter to work. Can't put all my eggs with the big G, no matter how profitable it can be!

  • http://twitter.com/JerryNordstrom Jerry Nordstrom

    Michael, well said. And I bet you could have gone on to include many more points beyond user interface issues. There is little doubt Adcenter lacks in features and slick usability compared to Google. The largest fear I had has come to be with the merger of Yahoo and Adcenter.One key failure at YSM was its Publisher Network YPN. There were plenty of excellent publishers, unfortunately, YSM poorly policed the network and allowed many risky practices such as cloaking syndicated partners, allowing garbitrage, parked domain pages and more which left advertisers continuously defending against click fraud, fighting for returns and worrying about getting stung at any given time.Microsoft had none of these issues as they only had a “Publisher network” consisting of their properties. MSN Money, News, Finance etc. For nearly 3 years Adcenter said when they introduced a content network they would do it right. But the Yahoo deal rolled out in a choppy timeline and left their team with little time to execute on the proper implementation of this troubled network. So what was their solution?They simply dumped adcenter advertisers onto the fraud full YPN sites.They offered ZERO additional tools to control this risky network.They then limited the number of site exclusions to 500 (we received 190 n the first day)They do not allow for category exclusions such as parked domains, adult or violence.You can't block MSN or Yahoo properties. So you have to run ads on MSN Sports regardless of the appropriateness of the match.You MUST accept ALL yahoo content traffic with the Adcenter traffic, or turn off content altogether.You can't turn off Yahoo search traffic.You can't turn off Yahoo search partners (only search syndication)So in short either for profit, from panic or from pure stupidity Microsoft Adcenter went from saying they would create the best of breed content networks, to throwing their weakly loyal advertisers to the YPN wolves with nothing to protect themselves with.Take a read through at the Adcenter forums, they are full of angry advertisers.Take a look at JunkClick.com and you will find a list of hundreds if not thousands of purely junk click sites from Yahoo (use them to include in your site exclusion list today!).As an Adcenter advocate, beta tester, in person focus group participant, adchamps, and Ad community member for the past 5 years I am severely disappointed in the results of this merger.Our campaigns and all of our client campaigns are paused until change is implemented.How long will it take to weed out all the bad publishers? Will they weed them out? Who will pay for weeding them out. Answer: YOU WILL. You pay for the clicks, you create your site exclusion lists and from that Adcenter will potentially kick that publisher out, but not provide a refund to you. You get to pay Adcenter for the privilege of refining their content network. How nice of you.

  • http://www.payperclickhouston.com Tony

    Microsoft is definitely a stupid company.  I’ve been trying to install MSN AdCenter Desktop to manage clients account but been unable to.  I am an agency that want to spend money with them but like all things Microsoft, it’s built around their mindset, Google won me over in the early days for the same reason, they made it easy for me to manage multiple accounts unlike Yahoo, I dumped Yahoo and never looked back.  This is a complete waste of my time.  I wish them luck, but I am beginning to think there’s no chance for them to catch up if they don’t think about who is using their system. 

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