A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Month: March 2007

A look into the future?

lottery-tesco.JPGHere’s what an instant lottery ticket dispensing unit looks like at the checkout counter of Tesco supermarkets in the UK. I expect that it’s this type of unit which Intralot would have placed at checkouts of Coles and Safeway if they will the instant ticket licence in Victoria.

Newsagents who do not want to see these units at supermarket checkout counters in Australia need to act now. The petition re the move by Greek company Intralot to setup in Victoria and partner with supermarkets is still live here. You have nothing to lose by letting your elected representatives know how you feel now.

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Lotteries

RSVP scam follow up

My blog post yesterday about how an affiliate marketing campaign run by Fairfax Digital chasing traffic for their RSVP site caused a stir.

Crikey.com.au picked up the story for their daily email bulletin and their website.

It was fascinating watching the quick disassembling of the RSVP affiliate campaign. It’s not easy and during the day one could see the retreat. The Google cache remains the only live online evidence I suspect that other affiliate campaigns purchased by Fairfax Digital were disassembled too as a result of our outing this affiliate marketing practice by Fairfax.

I received several calls including one from the CEO of Commission Monster. He said that what I reported was the action of a rogue affiliate, possible someone looking to commercially harm Commission Monster, and that as soon as they discovered this they took the campaign down. I don’t know if it was the action of a rogue affiliate and frankly I don’t care. Given the thousands of dollars Fairfax would have running in its RSVP affiliate campaigns with Commission Monster, both companies ought to know when a ‘rogue affiliate’ is at work or not. If they were concerned about such things they would have checks and balances in place to ensure that the scam I outed yesterday did not continue beyond a day. That it was running for at least two months demonstrates to the cynic in me that they were happy to turn a blind eye.

I suspect that RSVP suffers from a significant churn – hence the need for even dubious campaigns such as affiliate campaigns. Fairfax would know something about churns from their newspaper experience. They would also know about the need to engage in practices acceptable to the Audit Bureau. The scams used in some affiliate marketing campaigns ought to be enough to scare off any respectable company regardless of the new traffic generated.

It will be interesting to see how this issue plays out and whether I hear anything from Fairfax Digital.

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Online classifieds

UK visitor surprised at newsagent channel strength

We had a chap from a UK publishing company in our shop the other day and he commented at how robust the newsagency channel seemed in Australia compared to the UK. He lamented the loss of mid size shops like ours. I know from my recent trips to the UK that there is a huge difference from the top end WH Smith type stores to the 20,000+ high street newsagents which are barely existing as convenience stores.

The suppliers who rely on our strong channel would do well to travel to the UK and see what happens if you squeeze at the bottom end too much.

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Newsagency challenges

The refurbishment gets better

K-Mart closed a month ago for a nine month make over into a Target store. So far so good. Some categories down and others up. We’re dealing with it. The big surprise today was the news from the landlord that we’re going to have to give up most one of our stationery aisle for works related to the Target build – they have to replace the steel columns with concrete ones. Besides losing the space there is the visual impact on the business with a temporary construction feel as well as other challenges we will discover when this starts.

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Newsagency challenges

Fairfax / RSVP caught manipulating Google results

Fairfax Digital, the owner of RSVP, the biggest online dating site in Australia, seems to be using dubious SEO tactics to manipulate Google search results to attract more traffic to its site.

Using Hitwise data we can see that RSVP attracted, on average, 3.3 million visits a month over December 2006 and January 2007. Our 3loves site attracted on average 49,778 visits a month over the same two months while all online dating sites attracted on average 20.79 million visits a month. RSVP has 15.8% share of traffic in the online dating category. We have 1.5% of RSVPs traffic.

These stats make the RSVP behaviour all the more curious. Here’s what we know so far.

Fairfax Digital uses an organisation called Commission Monster to promote RSVP and, we suspect, other Fairfax Digital sites. We discovered this by tracking redirection from a Google search results link through to where we actually ended up. We were taken through Commission Monster on the way to the page we were seeking through Google.

Someone, we suspect Commission Monster, has created a page which redirects traffic to RSVP when they have been searching for 3LOVES. This is a violation of Google rules. Click here to see what Google thinks is at the page. This is what the Google spider cached on January 30 this year. Curiously, the page has been modified in the last 24 hours, since we first raised this issue, and is now displaying an error.

Until yesterday, the page seemed to check where the click came from and if it was not Google, the browser redirected to RSVP. We know from Google results and what’s in their cache that the Google spider was not redirected.

Here is the Google cache for the page as captured by us today. This is evidence of misbehavior. Fairfax / RSVP actions over the last 24 hours show they know they have been caught out. Expect the Google cached page to change as they try and remove traces of their Google search results manipulation.

That Fairfax and or their representatives have changed the redirect page in the last 24 hours is proof to us that they know they have done something wrong.

Even though it does not actually exist. Browsers clicking on the Google search results are taken through what is called a 302 redirect to RSVP. Whoever set this up did so to take people searching for 3LOVES to RSVP.

Whoever has done this has gone to considerable lengths to try and trick the Google spider. BMW did something similar and were removed from Google for a time as a result. Details of what BMW did and the consequences can be read here. Google gave BMW a pagerank 0 penalty, meaning that they lose all relevancy in Google searches. It’s kind of like being sent to Siberia in Winter for a while. Google takes attempts to manipulate search results very seriously as the purity of results is crucial to their credibility and business model.

We know from our research that Fairfax Digital is not only targeting our 3LOVES site in this way. We have plenty of other dating site names being used to drive traffic to RSVP in this way. Here is the cached page setup for Adultmatchmaker.

We have reported the matter to Google. They came back to us quickly and have sought additional information which we are providing.

Google’s webmaster guidelines cover this issue. Specifically, Google advises webmasters: Don’t employ cloaking or sneaky redirects. They go on to say: If a site doesn’t meet our quality guidelines, it may be blocked from the index. This is why we are putting it to Google that RSVP is removed from the Google index.

3LOVES is a tiny free online dating site. We’re new, we’re under-resourced and we are filling a need in the community. People are spending too much chasing love online. Tens of millions of dollars are spent each year by Australians chasing love and romance online. If we can save even a fraction o that for people to use elsewhere in their lives than our mission will be accomplished.

The folks at Fairfax Digital and RSVP ought to get a grip and focus on their offering rather than try and con people searching for us into visiting their RSVP site.

3loves is part of an online classifieds offering we are launching with newsagents as our retail partners.

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Online classifieds

Growing single copy newspaper sales

“Consumer behavior has changed,” Schaub explains. “They will not go out of their way to find your product. … If they go to Starbucks, you have to be inside Starbucks and be in their pattern. They won’t turn the corner to find you.”

That’s Dan Schaub, senior vice president of circulation for the Sacramento Bee quoted in an excellent article by Jennifer Saba about single copy newspaper sales published two days ago by Editor & Publisher. Newsagents, staff in industry associations and publishers need to read this. They (we) need to read it and discuss it. This article goes to the heart of the challenges we face in newsagencies in Australia at the moment.

I especially enjoyed reading about the research by the Newspaper Association of America including this:

Buyer behavior has become more erratic when it comes to purchasing papers at the newsstand (or local convenience store or supermarket). This means front-page design and hard-driving marketing tactics are even more necessary to ramp up sales, the study suggests.

We’re seeing erratic buyer behaviour here. This is why publishers want to get their newspapers into more outlets like Gloria Jeans, Big W and Starbucks as we have seen over the last year or so.

The article details this mystery shopper promotion run by the Sacramento Bee circulation people:

In addition to upping racks and distribution in retail outlets, the Bee made sure to hit the streets in an effort to get to know managers and store clerks — the people who decide the placement and sale of the product, much like Jimmy Newsboy of old.

To get the copies flowing, the circulation team approached sales clerks with a “mystery shopper” incentive program. Sales clerks who suggested to any customer that they buy the Bee, would receive money on the spot — $10 to $20 — if a team member “caught” them doing it, during a surprise visit. Using the power of peer pressure, the Bee distributed a newsletter every week to the participating stores listing who won the cash. Those clerks who failed to mention the Bee during the covert visits were also listed. “We saw a big difference with that,” Swift says.

The mystery-shopper contest was combined with price pulsing (a reduction in the price of the paper). Initially, sales grew 17% during the promotion. Even after the price went back up and the incentive program ended, single-copy sales grew 8%.

Be sure to read the whole article. In my view the issues are the same here except we’re a little behind. The article provides advance notice – an opportunity for newsagents to get on the front foot.

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Newspaper marketing