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Articles:
Show article comments Published: November 23, 2009
Why Murdoch Can Afford to Leave Google for Bing
Why Murdoch Can Afford to Leave Google for Bing
Comments:
Hmm, this step is seriously important in today's internet market. I do believe Murdoch-person importance in all markets will make same king of noticeable impact in between big players' and google relations. http://www.amcarguide.com/ –Vilnius, VI
I might not like Mrs. Murdoch's politics, and I might think she is pretty heinous as a person, but she is a kick butt businesswoman! With 22% of all browsers able to block all Ads including Google paid search positioning, and the weak digital performance for online advertising I doubt this move will affect News Corps revenues or site traffic. Most News Corp's web properties get bookmarked and visited directly. And since most properties are name brands they don't need to advertise because everyone knows the url to type in if needed. –Los Angeles, CA
@ jay_miletsky "I'd rather have 1,000 visitors who genuinely want to read my site and that my advertisers want to reach, rather than 3,000 passers-by who really have no vested interest in my content." I totally agree with this statement, however that's exactly what Search Marketing does. As long as your campaigns (PPC and SEO) are properly targeted, only people with 'genuine interest' will see your site. Can fully understand concentrating efforts on one medium/ distribution channel, but why Bing? Could this be more a political move than an astute business decision? –Dublin, -
When I started at SportsLine.com many moons ago, all the content was behind a paywall. Daily visits were probably listed in the hundreds, if that. When we got rid of the paywall the visitor count exploded, eventually reaching dozens of millions of visitors a day, sometimes more. Moral of the story, in my opinion, is that content is everywhere. If you want people to read yours make it available. Otherwise they'll find it somewhere else. David Kaplan www.DROL.com –HAWTHORN WOODS, IL
Stevie Ballmer is both a fool and a foil in this supposed alliance. He is a fool to think that he can buy up a truly critical mass of media content. The MSFT treasury, already greatly diminished because of his other follies will be further eroded while his core software hegemony crumbles day by day. He is a foil for the tough, smart Aussie who has nothing to lose and everything to gain by hanging tough on the principle that only fools give the store away. Mike McDonald Co-founder, McDonald & Little, Atlanta –Atlanta, GA
Traffic you can't monetize actually costs you money. Publishers will need many revenue streams to be profitable. But why limit themselves to one or two models. Offering users "many ways to pay" leaves no money on the table. See the model at http://www.PayCheckr.com –Westport, CT
Rupert Murdoch can live without Google. And he has nothing much to lose by tilting at Sergey and Larry's windmills. But, none of this is the same thing as having a viable business. We live in an era of rampant media oversupply. And, the most oversupplied and commoditized niche is news. I'm all for trying something crazy if what "makes sense" has been proven not to work. But, right now on news.google.com there are 1,666 articles about the top story. With 1,665 free options, why should anyone choose the one they must pay for? That is the question Murdoch must answer in order to make his idea work. –White Plains, NY
I can't believe I agree with Rupert Murdoch. –Bristol, VA
@dsrtrosy: I actually think that's a great question. I'm not sure why, all other points being accepted as true, Bing would be considered the better choice. I'm going to have to meditate on that for a bit... @Kevin: Good points. I could likely be swayed by your points on Google as a driver of relevant traffic, and that the benefit of a more focused audience won't necessarily be achieved by shunning the search giant. But I think we may have to let history determine whether or not closing off content to subscribers will end up being successful. Murdoch hasn't (to my knowledge) said how he's going to do it, and if he expects people to subscribe to each site on an individual basis then the experiment will certainly be DOA. However, if he packages them together and provide access to all sites for a single price ($X per month for access to WSJ, NY Post, Fox News, etc.) then that's a different story. In that case, I believe consumers who do value more professionally developed content will be willing to pay the fee, and advertisers will be willing to pay a premium for less transient viewers. Jason Miletsky –totowa, NJ
I think Murdoch is trying to change quite a bit by this move. He does understand that not all traffic is the same. Google makes money by delivering ads that meet the searchers objectives. They work hard to keep them relevant. Without that CTR and ROI is not what it needs to be and people stop using the service. So Murdoch is going to try a different approach to see if he can increase his ROI. He may also be using it to bolster Bing against Google. While Bing may not have the best search engine, they are clearly #2 especially when they take over Yahoo's search. It will be interesting to see how this plays out. I don't think any of use conclusively know what will happen. He may execute extremely well and change the model or he may fail. The good thing is he is willing to try something to keep his company profitably and relevant. Scott http://www.AskTheWealthSquad.com/SimpleBlog http://www.linkedin.com/in/scottlovingood –Riceville, TN
Jason, I agree and disagree I think that you and Murdoch are both right when it comes to the value of traffic on a website that it is quality not quantity that matters most. Both to the advertisers and to the site owners, but having dealt with many e-commerce sites I can tell you that Google is a driver of relevant traffic if it weren't then platforms like Google AdWords, which consistently drive conversion rates of 10-20% on some of the sites I've worked on, would not be possible. Thus while you might see Google as a largely one-and-done traffic source, I don't think this is true in all or even most cases. As for Murdoch's wish to reattempt the subscription-based format for information on the web, you said past failures don't preclude future failures, and I respectfully disagree I feel that barring a major paradigm shift in the way the internet works past failures will play out again. Murdoch and his news holdings will not, alone, be enough to change anything. Even if he succeeds in stemming the flow of his content through Google, a thousand bloggers who subscribe and pinch the information to publish on their blogs will be more than enough reason for a million other users not to subscribe. Something may very well need to change in the way we as a society view the cost of information, but Murdoch and the WSJ will not be the dam that diverts this river. Hopefully Murdoch and the WSJ will realize their mistake before they lose too much money and too many visitors. Kevin –Glenm Rock, NJ
The article is missing the problem of being marginalized if not on google. Look at myspace losing to Facebook. Look at the rise of Linked in. Ad Age hasn't patted itself on the back, but could. Until there was a free online edition, we didn't get it. Now we are deeply involved daily. Ditto for slash.org, paidcontent, and many other sites. The Boston Globe, NYT, WSJ, and IBD keep descending on our list. Boston Globe and NYT sometimes; WSJ and IBD never. And I am a senior, not a young adult. Watch out for pay walls--you'll be alone with your voice/print. –Lincoln, MA
I don't disagree with the premise--of the article or the first comment--but my most burning question is still not answered. Why Bing? As most savvy searchers continue to reject Bing for its lack of content and inability to deliver on the promise of its catchy commercials, why on earth would any business rely on it? If Google is still providing the best search engine, it seems that Google will also provide the best qualified customers. You're right, Jay. Quantity doesn't equal quality. But in this case it seems that the quality of the search provides a larger quantity of traffic as well. Why is it so revolutionary to eliminate both quantity AND quality? –Tijeras, NM
@jay Murdoch does get the Internet and he will be skewered on Twitter, mostly by free-loaders who have no real business plan for their own stuff OR are free-loading off an employer and can afford to be wrong. An analogy. http://www.dogwalkblog.com/2009/11/20/rupert-murdoch-gets-the-internet-really-he-does/ –Englewood, OH
Murdoch is right on, even though I'll bet anything that by noon he'll be skewered on Twitter as a dinosaur who doesn't understand the digital space. In reality, I think he understands it quite a bit better than most. Those who are overly enamored with online media seem to subscribe to the philosophy that openness and free availability of information are unbreakable online commandments. Considering that few subscription-based online content platforms have really been successful to date would seem to reinforce that idea. But failure of something in the past does not preclude failure of that same thing in the future. Murdoch is taking steps toward what will inevitably be News Corps' reigning in of their content to a subscription based platform, and quite possibly definitively proving for the first time that it can work. And good for him. He's made an investment, and built a company, and professional journalists have a talent and skill that the large majority of amateur bloggers don't have, and there's no reason that better content should come at a price. In terms of traffic (sorry to veer off topic), he's also spot on to no care about sheer numbers. Ultimately, will the decisions he's making cause fewer people to visit his sites. Absolutely. But so what? As a business owner, I'd rather have 1,000 visitors who genuinely want to read my site and that my advertisers want to reach, rather than 3,000 passers-by who really have no vested interest in my content. My prediction is that by this time two years from now, Murdoch's moves will be hailed as revolutionary, and, in showing profitability (or at least a trend towards it), other major media outlets will follow suit, and the Web will be a vastly different experience. Jason Miletsky CEO, PFS Marketwyse Author, "Perspectives on Marketing" http://www.getperspectives.com http://twitter.com/jaymiletsky –totowa, NJ
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