Click Fraud Just Another McGuffin

By Cody Willard
RealMoney.com Contributor
1/26/2006 9:26 AM EST
Click here for more stories by Cody Willard

This column was originally published on RealMoney on Jan. 24. It’s being republished as a bonus for TheStreet.com readers.
So let’s talk about this Google (GOOG:Nasdaq - commentary - research - Cramer’s Take) click fraud thing for one second, as it has become a large part of the bear case on Google right now.

Look, Google knows there are some teens in Siberia, and yes, probably Duluth too, who are messing with click-through rates by repeatedly hitting ads.

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But the big question isn’t whether or not this nefarious stuff is going on. It’s whether or not this evil stuff (to borrow the Googlite phrase “do no evil”) is going on to an extent that Google’s customers will be surprised to find out about.

It’s related to how advertisers in television and magazines (and all other media) have to account for TVs that are left on for the dogs while nobody’s home, or for subscribers who never open the magazine. And guess what — both the sellers and the buyers of such advertisements are aware of and account for this ahead of time.

You see, Google tells its customers beforehand that there will be click fraud, and it even accounts for that in its pitch. That’s right, when Google tells a customer that they can expect X return on investment (ROI) when using Google’s ad network, Google’s already included click fraud in those numbers. So in essence, the only way for this supposed click-fraud issue to really become problematic is if it’s worse than Google realizes. Consider it the online marketplace version of Wall Street’s “worse than expected” scenario.

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Jan. 24, 2006–Online Sales Strategies, Inc. (Pink Sheets:OSSG) (”the Company”) announced today that its subsidiary, The Online Outpost Licensing Corporation, has signed an Area Development Agreement for the city of Phoenix and surrounding areas. The Area Development Agreement (which includes revenue sharing with the developer) grants (for a fee) the rights to a territory and sets forth performance requirements to develop an area’s potential, based upon the market size of the territory. The agreement with respect to Phoenix contemplates a minimum of eleven (11) stores opening over the next thirty-six (36) months.

About Online Sales Strategies, Inc.

Online Sales Strategies mission is to become a leading provider of all necessary resources to successfully manage and operate online sales and software related businesses. Online Sales Strategies, Inc. makes auctioning online easy for individuals and businesses. Online Outpost franchise locations offer an easy and convenient way to sell items online. The concept is a store where customers can take advantage of a service and turn unwanted items into cash. Online Outpost stores handle the entire selling process whether it is one or many items, a small piece of jewelry, electronics, vehicles or even real estate. The software package offered to franchisees allows stores to manage all aspects of the business from customer management, listing, auction templates, image hosting, shipping and reporting all from one interface and has been certified as an eBay compatible application. For more information, please visit our website at http://www.onlinesalesstrategies.com.

Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of Online Sales Strategies, Inc. officials are “Forward-Looking Statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act). Forward-Looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as “believes,” “anticipates,” “intends,” “plans,” “expects,” and similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future Online Sales Strategies, Inc. actions, which may be provided by management, are also forward-looking statements as defined by the Act. Forward-Looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to materially differ from any future results, performance or achievements expressed or implied by such forward-looking statements and to vary significantly from reporting period to reporting period. Although management believes that the assumptions will, in fact, prove to be correct or that actual future results will not be different from the expectations expressed in this report. These statements are not guarantees of future performance and Online Sales Strategies, Inc. has no specific intention to update these statements.

Contacts
Online Sales Strategies, Inc., Tampa
Matthew Brown, 813-470-7094

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Why Craigslist Works, by Craig

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Craig Newmark A ChangeThis exclusive: The craigslist founder reveals the values that made craigslist a success.

craigslist started as a small email list for a group of friends in Northern California. Ten years later, it’s a global phenomenon. In a ChangeThis exclusive, Craig Newmark talks about the values that got his business from there to here.

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Visitors Using the Search Box on a Web Site Nearly 3x More Likely to Convert
Than the Average Visitor, According to WebSideStory Index

SAN DIEGO, Jan. 12 — Site search provided a huge
boost to e-commerce sites during the holiday shopping season, helping convert
visitors into buyers at nearly three times the rate of average site users,
according to a new study by WebSideStory, Inc. (Nasdaq: WSSI), a leading
provider of on-demand digital marketing applications. During the last three
months of the year, the conversion rate for visitors using the search box on a
web site was 7.54 percent — 2.7 times higher than the conversion rate for
average site users (2.79 percent), according to the WebSideStory Index, a new
statistical barometer that features techno-graphic and e-commerce trends
culled from the millions of users that visit web sites using the company’s
award-winning web analytics technology. Site search conversion rates also
soared as the holiday shopping season progressed, jumping from just under
6 percent in October to more than 8 percent for the month of December,
according to the index.
“This data shows that effective site search is becoming one of the most
critical conversion drivers in online commerce,” said Ali Behnam, senior
digital marketing consultant for WebSideStory. “Helping visitors find what
they are looking for in a fast, convenient manner significantly increases the
likelihood of their making a purchase. We only expect these conversion rates
to increase as more and more e-commerce sites engage in best of breed site
search implementations.”

The WebSideStory Index is a compilation of techno-graphic and e-commerce
trends. It spans everything from browser and operating system trends to
shopping cart usage and checkout conversion rates. Other findings of the
latest index, which covered the last three months of the year and early 2006:

* Branding and customer loyalty also continue to drive conversion rates,
especially during the holiday season. Repeat visitor conversion rates
(13.88 percent) were seven times higher than new visitor conversion
rates (1.68 percent) during the last quarter of the year

* Despite making strong gains in 2005, the Firefox browser did not meet
its reported goal of 10 percent market share by year’s end. As of
Jan. 5, 2006, Firefox had a U.S. browser usage share of 8.88 percent,
according to the index. Although Mozilla Corp. did not reach its
intended goal — a target first reported by ZDNet — the browser still
made significant strides over the last year, rising from a 4.23 percent
share on Jan. 5, 2005. Three-quarters of that growth came during the
first half of the year. The last time a non-Microsoft browser achieved
close to a 9 percent market share was Netscape in April 2002, according
to the index.

“The good news for Firefox in 2005 is that it established itself as a
viable Microsoft alternative with millions of users,” said Geoff Johnston, a
WebSideStory analyst.
For more information about WebSideStory, please visit
http://www.websidestory.com.

U.S. Browser Share Over the Past Year

Browser Jan. 5, 2006 July 5, 2005 Jan. 5, 2005
Internet Explorer 87.63% 88.57% 90.55%
Firefox 8.88% 7.44% 4.65%
Other 3.49% 3.99% 4.80%

Note: For consistency and accuracy, WebSideStory always compares weekday
averages.

About WebSideStory, Inc.
Founded in 1996, WebSideStory, Inc. (Nasdaq: WSSI) is a leading provider
of on-demand digital marketing applications that improve online marketing and
sales. Its Active Marketing Suite(TM) consists of web analytics, site search,
web content management and keyword bid management (scheduled for release in
early 2006). WebSideStory is headquartered in San Diego, California, and has
European headquarters in Amsterdam, The Netherlands. For more information,
contact WebSideStory. Voice: 858.546.0040. Fax: 858.546.0480.
Address: 10182 Telesis Court, 6th Floor, San Diego, CA 92121.
Web site: http://www.WebSideStory.com. HBX and Active Marketing Suite are trademarks
and WebSideStory is a registered trademark of WebSideStory. Other trademarks
belong to their respective owners.

Forward-Looking Statements
Statements in this press release that are not a description of historical
facts are forward-looking statements. You should not regard any
forward-looking statement as a representation by WebSideStory that any of its
plans will be achieved. Actual results may differ materially from those set
forth in this release due to the risks and uncertainties inherent in
WebSideStory’s business including, without limitation: WebSideStory’s reliance
on its web analytics services for the majority of its revenue; blocking or
erasing of cookies or limitations on our ability to use cookies;
WebSideStory’s limited experience with digital marketing applications beyond
web analytics; the risks associated with integrating the operations and
products of Avivo Corporation with those of WebSideStory; privacy concerns and
laws or other domestic or foreign regulations that may subject WebSideStory to
litigation or limit our ability to collect and use Internet user information;
the highly competitive markets in which we operate that could make it
difficult for WebSideStory to acquire and retain customers; the risk that
WebSideStory’s customers fail to renew their agreements; WebSideStory’s recent
achievement of profitability and the risk that it may not maintain its
profitability; the risk that WebSideStory’s services may become obsolete in a
market with rapidly changing technology and industry standards; and other
risks described in WebSideStory’s Securities and Exchange Commission filings,
including WebSideStory’s annual report on Form 10-K for the year ended
December 31, 2004, as amended, and quarterly report on Form 10-Q for the
quarter ended September 30, 2005. Do not place undue reliance on these
forward-looking statements which speak only as of the date of this news
release. All forward-looking statements are qualified in their entirety by
this cautionary statement, and WebSideStory undertakes no obligation to revise
or update this news release to reflect events or circumstances after the date
of this news release.

SOURCE WebSideStory, Inc.
Web Site: http://www.websidestory.com

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Microsoft’s Search Engine Marketing Push

January 13, 2006 • by Michael Desmond

Asked why he wanted to scale Mount Everest, famed British mountain climber George Leigh Mallory famously replied: “Because it’s there.”

It may seem like Microsoft has scaled every peak, but the software giant is playing an important game of catch-up with Yahoo! and rival Google in the area of search engine advertising. If Microsoft hopes to achieve its vision of services-based applications like Office Live and Windows Live, it needs a way capture ad dollars and produce viable revenue streams.

That’s why Microsoft has spent more than a year honing its adCenter search engine marketing effort. As a direct competitor to Google AdWords and Yahoo! Overture, adCenter promises to bring pay-per-click (PPC) advertising to the next level. The program, currently in beta, is expected to formally launch in June.

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Cash Money: Software Automates Making Money From Search Engines

A little Known German Computer Programmer And Business man Creates A Building Wealth Software That Turns Search Engines Into Automated Cash Generators

Most people today are increasingly using the search engines to find what they are looking for online.

The most popular search engines claim that they have indexed billions of websites.

What a lot of people online don’t realize is that there is a simple way to compel the search engines to make you money online without any work or selling or large investment, thanks to a simple building wealth software created by little known German computer programmer, by name Sebastian Foss.

This is what Mr. Foss has to say: “I have found a foolproof method how anyone can easily make an extra $500 or even $1.000 every week with 15 minutes of their time and create a substantial monthly income. This method has never been released to the public before. Very few, if anyone has implemented this. I have decided to share my idea with you.”

Mr. Foss said he was encouraged to create this make money online software to use after he failed in many online businesses and programs he has tried over the past years.

He said, this make money online software levels the playing field for all because there is no work or selling or complicated training required to use it to begin to generate cash money income.

To use it, you simply enter your ID, a few lines of data, click a button, and in 15 minutes you’re on your way to begin to generate cash money online.

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Microsoft and Yahoo agree to enhance their search engines
eWeek is reporting that Microsoft may have some interest in Yahoo after all, but it has nothing to do with buyouts. Rather, researchers at Microsoft have been chatting with Yahoo about how to improve online searching capabilities.

Essentially, Microsoft and Yahoo have put their heads together and concluded that they must make their search engines, at the very least, comparable to Google. Wow. Good thing they spoke with one another!

Microsoft Research Asia director Harry Shum had the following to say about the special conversation:

“There is something called search relevance that Google has been ahead of most competitors in, but the gap is closing. And Yahoo claims statistically that this difference does not even exist anymore between Google and Yahoo. MSN, with a lot of help from MSR [Microsoft Research] is closing the gap like crazy. We will be catching up with them in a matter of months. And something will be there. But that is only one problem—one very tough problem, however.”

Microsoft, Yahoo Talk Search

Microsoft, Yahoo Talk Search
By Darryl K. Taft
January 12, 2006

Despite Microsoft Corp.’s denial of rumors that the software giant may have interest in Yahoo Inc., the companies have been talking—at least on a research level.

Harry Shum, the Beijing-based managing director of Microsoft Research Asia, said he has recently spoken with the head of Yahoo Research about the issue of enhancing search capabilities and competing with Google.

At the start of the year, there were rumors that Microsoft had made a bid to buy Sunnyvale, Calif.-based Yahoo. The Los Angeles Times, citing anonymous sources, said Microsoft allegedly had offered $80 billion for the company, an amount Yahoo rebuffed as too low.

A week later, Microsoft CEO Steve Ballmer flat-out denied in a published interview that Microsoft had made an offer to buy Yahoo

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Search Engine Lists

SEO

Internet Marketing

Search Engine Optimization

SEO Expert

February 1 from 9:30 AM to 11:30 AM.

Call ASBA 602-265-4563 to register.

Seminar by Marie Dalloway, CEO of Performance Media and Lee Shapiro, MEd., ACPC. Stress hardy people seem to dance through stressful periods. These individuals not only navigate the stressful times well, they thrive on stress. Be a Thriver, one who can thrive on change and the fast pace of today’s workplace. Experience higher performance and increased productivity, as well as enjoyment and less stress by learning the lessons from those who are excellent at dealing with stressful situations. Learn the practical techniques that help you achieve your best results, while being calm and relaxed, so that you can enhance your personal and professional success. Flyer attached with more information.

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Performance Media: Products for Maximizing Performance Peak Performance Information and Training: Books, Videos, CDs, and Online Courses Marie Dalloway, Ph.D., President 5501 N. 7th Ave., No 921 Phoenix, AZ 85013-1755 USA 602.274.1889 Fx 602.274.0466 dalloway @ performance-media.com

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