Bigmouthmedia search engine news: Main Headlines

Microsoft approaches Facebook in wake of Yahoo disaster

Sat, 05 Jul 2008 12:00:00 GMT

It's now common knowledge that Microsoft has withdrawn its 3-month-old bid for Yahoo Inc, after failing to reach an acceptable price agreement. Microsoft Chief Executive Steve Ballmer had offered to pay $33 per share, or $47.5 billion, for Yahoo, up from an initial bid valued at $44.6 billion, or $31 per share. Yahoo's board wanted $37 per share - a price that the company's stock hasn't reached in more than two years.

Microsoft trails Google and Yahoo in the US $41-billion market for online search and internet advertising - and the bid for Yahoo was clearly an attempt to turn things around. Buying Yahoo would have more than tripled Microsoft's share of searches and stepped up competition with Google, which has grown faster than Microsoft in every quarter since Google's 2004 initial public offering. Microsoft, on the other hand, posted a US $228-million loss last quarter.

The software maker now needs to prove that it can innovate without Yahoo as a partner. But 'without Yahoo' doesn't necessarily mean without anybody. Bill Gates has expressed Microsoft's intentions to make 'advances' in its own search offering and to expand through 'strategic transactions' - and it seems he's quick to act on his word.

Just a few days after walking away from its Yahoo bid, Microsoft has already reportedly set its eyes on Facebook - the second-largest social network behind MySpace. Microsoft CEO Steve Ballmer has mentioned that Facebook would give the company some Web scale. Moreover, Microsoft already owns a 1.6 percent stake - worth $240 million - in the social networking site. According to the Wall Street Journal, Microsoft's bankers have contacted Facebook to see if Mark Zuckerberg and company would be interested in selling the company. There are apparently no active discussions regarding the issue as of yet.

Microsoft's investment always implied an eventual Facebook valuation; but is it a mere coincidence that the proposition has arrived just a few days removed from the Yahoo debacle? Perhaps the folks at Microsoft are looking to turn up the heat on Jerry Yang and his investors at Yahoo, should Microsoft decide to put forth another proposition. Or maybe it's simply an effort on Microsoft's part to save face after having $47.5 billion turned away. Microsoft may even just be looking to acquire some hot Web 2.0 names, in which case the likes of Digg or LinkedIn might satisfy their appetite. Whatever the reason, one thing is certain - Microsoft currently holds a significant want for scale and a whole lot of capital to get it. Will Facebook take the bait?

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Powerset, go! An evolutionary step for search?

Mon, 12 May 2008 12:00:00 GMT

The goal of Powerset since its inception in 2005 was to be a search engine that does not search based on keywords alone, but tries to understand and focus on natural language processing with the aim of making the search process more natural and intuitive.

The launch of Powerset's showcase (which is more or less the search engine without the web crawl) aims to demonstrate the potential of this new approach to search. Presently, Powerset queries only Wikipedia and then uses data from Freebase to augment the results, with little need for ranking algorithms to sort the good results from the bad. Making it tricky to determine how much of an effect they will have on the search market as a whole.

Users can, however, witness the effectiveness of Powerset's ability to retrieve information quickly. For example, someone doing research on a subject can use Powerset to potentially remove several steps of the process before getting to the final information they require, particularly if the information needed is on a variety of different web pages. This is due to Powerset's ability to make some sense of the content included on Wikipedia pages, structuring it and the inserting it into results, rather than just picking out keywords in your query that match those of web pages.

Powerset is also indexing web pages far differently to many other search engines. Instead of recording content to match keyword queries, they are trying to create an understanding of the page's content in order to match it meaningfully to queries later - whether the page contains matching keywords or not

It seems that Powerset aren't in the position to index the entire web just yet due to the expense of the process - Powerset's method requires considerable time and computer power dedicated to a web page. According to TechCrunch, the company has so far raised $12.5 million (with close to $8 million in additional bridge loans from investors) but to index the entire web will a large amount of additional financing for Powerset. This could very well explain the reports that investment bank Allen & Co. are currently shopping the company to potential buyers, reports that broke just a day before the launch of Powerset's showcase.

There has been criticism from some that Powerset's goal of redefining the search process for millions of users is a touch on the "lofty" side to say the least. Danny Sullivan of Search Engine Watch argued that search engine users are too set in their ways to dramatically change how they peruse information. "If Powerset's going to change those habits, good luck. Getting inside the minds and whispering "type longer" isn't going to be fun."

Despite such criticism, a number of search aficionados have concurred that whether Powerset achieve their goal of redefining search or not, they're certainly trying to do something fairly special, and ruffling the feathers of the search engine elite along the way!

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The continuing evolution of web analytics

Fri, 09 May 2008 12:00:00 GMT

Web Analytics has been around since the first script was written to present raw log data from servers (logfiles) in a more accessible and readable way. This allowed webmasters to collect, analyse and report information about the users of their websites. Soon after, counters became popular on all sorts of sites desperate to show off their popularity but often showing their lack of it.

Snappily named internet company WebSideStory started out providing counters to porn sites. Every time the counter was downloaded, it increased in number, showing how many people had visited that page. This idea was developed and a small, 1 pixel gif image with a piece of Javascript could be added to the page, allowing WebSideStory to extract loads of data remotely and process it into something more manageable for their customers. Adding Javascript to a page is still used to collect analytics data although there are now various other methods and combinations of methods.

The two main methods of collecting data, logfile analysis and page tagging, both have their faults and if not managed correctly can lead to inaccuracies in the data. The effort and cost involved in setting up and running data collecting systems is generally a factor in choosing the most suitable system. Debate was fierce in the late nineties about which method was best and the deciding factor in that battle was economics.

WebTrends became the sexy web analytic package of 1995 by taking information from logfiles and using pretty graphs and charts to display the information in a more business friendly way. It was an idea copied by many, and by the year 2000 web analytics had become a major industry. Three main players, all of whom used web logs, looked like dominating the market for the foreseeable future; WebTrends, Accrue and NetGenesis. Companies using page tagging, such as WebSideStory and Coremetrics, looked resigned to serving the lower end of the market.

Then something unexpected happened. In 2001, recession hit. The market for web analytics decreased and bigger companies such as NetGenesis and Accrue were hardest hit. CEO's couldn't see the value in spending large amounts of money on expensive web analytics packages and many smaller companies either went out of business or were bought up by other companies. The companies who generally fared best were ones providing analytics using page tagging. Firms who were cutting back due to the recession were happier paying an ongoing fee than a large one-off for their software.

By 2005 the main players in the market had become Coremetrics, Omniture, Webtrends and WebSideStory. Then in 2005 Google entered the maturing market and shook it up, big time. Google purchased web analytics company Urchin and shortly after, released Google Analytics as a free service. The software was not without its faults but it brought web analytics to many companies who could not previously afford them or simply didn't want to pay. It is not as powerful as many alternatives but it is easy to use, intuitive and most importantly, free. The lack of certain functions mean it may not be suitable for top-end websites but it has been immensely popular from the most basic websites to the sites of blue chip companies.

In 2006, Microsoft entered the market with Microsoft Gatineau after buying DeepMetrix Corporation. This product has been criticised for its $5 sign up fee and is still in beta status. It has not really made any big waves in the market, yet.

In 2006 WebSideStory merged with Visual Sciences and was purchased in 2007 by Omniture, leaving only three major analytics forces plus Google and Microsoft in the mix.

So what does the future hold? Big news in the world of analytics recently has been Yahoo's entry into the marketplace with their purchase of IndexTools.

Yahoo have announced that IndexTools will, like Google Analytics, be available at no cost. The big difference between the two services being that IndexTools is a more complex platform with functionality usually found on more expensive tools such as Omniture and WebTrends. Can these products really compete with IndexTools using their current business model?

It is possible that in these reportedly lean economic times, history could repeat itself with companies deserting Omniture, WebTrends and the rest in favour of something similar but cheaper. In fact, something free.

The reaction from Google and the other big companies will be interesting to witness. Google has continually added functionality to GA in the last few years and it's possible we'll see big upgrades sometime in the future to compete with IndexTools.

The possible future takeover of Yahoo by Microsoft will obviously play a large part in Microsoft's future strategy in this area too. It's difficult to imagine Microsoft not getting involved in a big way, either through their Gatineau project or taking over Yahoo.

One thing is for certain, the analytics landscape is continually evolving and it looks like the big boys are taking over. It's going to be very difficult for companies to survive by charging the amounts they currently do without finding something extra to give their clients. With Google, Yahoo and Microsoft all providing their analytics packages at no cost ot the user, it could be a rough ride ahead for some companies if the economy continues to slow down.

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Yahoo! unveils new visual search results

Fri, 09 May 2008 12:00:00 GMT

Yahoo! has unveiled Glue Pages Beta on Yahoo! India Search; a new style of search result, similar to Google's Universal Search system. The new pages replace the usual text list with a broad and visual selection of news articles, videos, images, Wikipedia entries and more along with the standard search results.

Glue Pages offer a more visual result than the standard Yahoo! results page, though the option to use the standard pages is still available, and they aim to produce a more natural search experience for the user. By combining a selection of results, Glue Pages offer enough information for quick fact checking and as well as a large base from which to expand your search.

A result for a celebrity or public figure, such as George W Bush, returns a short biography from Wikipedia, and selection of images, videos and Yahoo! Answers, while a search for diabetes has several encyclopaedia entries as well as news, blogs and Yahoo! Groups.

At the moment Yahoo Glue only works with certain categories (sports, travel, entertainment, health, finance and technology) where the topic is broad enough to have many results from a wide range of sources, and there is some diversity in the layout of the as well as the content. For example, the result pages for a search for "diabetes" and "George W Bush" look quite different.

It is expected that Yahoo! will roll out this feature across their other sites throughout the year - so look out for a new (sticky) image search application in town.

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Microsoft's failed takeover bid for Yahoo!: trends and implications

Thu, 08 May 2008 12:00:00 GMT

If you have an internet connection and spend any time at all browsing the headlines, then you must have heard about Microsoft's plan to buyout Yahoo!. When the news first got out in early February 2008, it shook the very foundations of the Search world.

Yahoo! was one of the first search engines to pioneer and dominate the search market following its incorporation on March 1, 1995 - before which Yahoo! was essentially a couple of guys who wanted to keep track of their interests online.

The reasons for Microsoft's intended buyout were obvious: eliminate the competition and expand in order to effectively compete in the search market - and with $44 billion on the table, popular search engine Yahoo! seemed like a logical choice, especially with Google breathing down the necks of both parties.

Microsoft's offer had many implications, both internal - in the shape of products and services offered - and external. in terms of market trends and stock prices. When the news of the bid was first released, following the departure of Yahoo!'s former CEO, Terry Semel, Yahoo!'s stock prices went through the roof, with a jump from $19.18 per share to $28.38 in one day.

After this time, the stock started fluctuating wildly in anticipation of Yahoo!'s decision (or lack thereof), and ending with a dive from $28.67 to $24.37 per share.

During this period, Yahoo!'s technical search team was very busy with new gadgets and functionalities, and new products streamed out of Yahoo!'s labs. In recent months there have been many beta releases and functionalities, some very interesting, others predicted to have no more than a short life span.

All Yahoo!'s new functionalities can be found on Yahoo!'s Search Blog. One of the most interesting innovations has been the recent shift towards an open search infrastructure (project code: SearchMonkey), which enables third parties to build and present their own customised search result entries.

Other fascinating developments are the extension of Search Assist to countries other than the US, and the introduction of SearchScan, which looks out for browser exploits, dangerous downloads and unsolicited email within its returned search results.

It seems that Microsoft's offer may have helped Yahoo!'s period of creativity to flourish - by giving them the impetus to show their fighting spirit. Or perhaps Yahoo!'s developments would have been progressing just as efficiently without the deal hanging over their heads - either way, the long-term effect of the failure of the Yahoo!-Microsoft deal on the search pioneer's stock prices will be key to deciding the path it will take in months to come.

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Facebook - sucking the talent out of Google?

Wed, 07 May 2008 12:00:00 GMT

Yesterday saw another senior Googler depart to take on a new challenge at the darling of the social media world, Facebook. From vice president of global communications and public affairs at Google, Elliot Schrage, has been put in charge of communications, government relations and corporate marketing for Facebook.

With this, Google's third high level departure of the year so far and the second to Facebook, there are murmurs that there is a brain drain occurring at the search giant's core. Before 2008, only three senior executives had left their posts, one of whom remains at the company as his successor has yet to be found. The official Google response references their "deep management bench", but just how deep does it go and what if this departure rate remains, or worse, what if it increases?

While many will discard the brain drain theory straight off, the other half of this story must also be considered. Facebook is now seen by some (VentureBeat, Forbes, USA Today & John McCrea to name but a few) as the hottest company in Silicon Valley, a title until recently reserved exclusively for the search engine from Mountain View. This shift is bolstered by the recent international increase in social network usage and the inevitable talk of money making potential, but only time will tell if this moniker sticks.

Maybe the grass is greener in Palo Alto, maybe Google is too comfortable with it's dominance of search and internet advertising, no one can say for sure. What is clear is that despite the rumours of social networking sites losing momentum and impending implosion in the sector, they are still able to attract the big guns of the internet business age to their ranks. This is however, unlikely to seriously affect Google in the long run with its market value continuing to grow as its market share does.

But it would surely be foolish to discount Facebook's potential to wrest the title from Google in the future. Another recent high level hiring was Gideon Yu, formerly YouTube's chief financial officer, and subsequent Google-to-Facebook transfers from Ethan Beard and Benjamin Ling. All that can be said for now is that social networking is an area of great potential in internet usage and advertising, a fact not lost on Zuckerberg and co.

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Reduce bounce rates through usability and analytics

Wed, 07 May 2008 12:00:00 GMT

So you have started to optimise your website for search engines, implemented any suggested changes made by your SEO agency and you are ranking highly on the all the major search engines for your target search terms.

You check your site analytics daily (or hourly like the bigmouthmedia analysts) to see how many visitors are landing on your site, what they doing and - most importantly - if they are converting.

You notice that you are attracting a large amount of traffic for a particular search term, but the bounce rate of that page is extremely high (for the sake of this article, let's say 90% as this varies between websites and verticals).

By correctly using an analytics or web traffic package such as Google Analytics, you'll be able check to see which pages on your site have high bounce rates. By utilising such data, it's possible to improve the page from the user's perspective by making it more user friendly. For the purpose of this article, we will use Google Analytics as the example analytics package.

You can view your bounce rate in Google Analytics by logging into your account, selecting Traffic Sources from the left hand menu then 'Keywords'.

However hard you try, you cannot find out why so many users are bouncing off your website when they land on your site.

The first thing you should do in this instance is type in the search term into a search engine on which you appear and find out which page is ranking and attracting traffic. Then visit the page and have a look around.

If you weren't presented with an error 404 page - meaning there are no site issues there - what's the next step? Take a look at is the page itself, and what search term is driving the traffic.

Usability

Analyse the page and put yourself in the shoes of the user: if you landed on this page, would you be happy with what is presented? For this example, a page might be too text heavy or display few images.

When creating optimised pages for search engines, you must also design them for the user, as obtaining the attention of web users is the ultimate goal. Essentially, if the user isn't happy, the user won't convert.

The key to search engine optimisation is establishing the difference between a well-optimised page and a page which is both well-optimised and attractive to users. This is why usability and search engine optimisation go hand-in-hand.

Once you've established what you think could be wrong with the page, the next stage is to act upon it and try and make the page better for the user, while still upholding its search engine friendly aspects.

Images

Provide an image. Images are a prime way to market your site. They give the user a visual understanding of what the page is conveying. Remember to include the all important alt attributes to ensure your site is accessible. There's also the off chance that the image you upload will rank within an image search engine, such as Google Images.

Formatting

Go nuts with formatting. Use:

Bold
Italics
Lists
Headings
Underlining
Alignments, etc.

If you can break down the text on your site so that it's easily digestible, then the user will take more value from the page. Remember that often when people read pages on the internet, they skim and filter out what they don't want to see. In fact, a recent post by usability guru Jakob Nielsen found that most users only have time to read 28% of words on a web page. So if you highlight and format relevant information correctly, they're more likely to return to your site on a regular basis.

For instance, compare the user friendly page on the right with the not-so-friendly one on the left.

Call to Action

Now the user has landed on the page what do they do next? Ensure that you make a call to action that clearly indicates what the user should do. Follow up on what the page is conveying with a strong call to action. If you have the knowhow, you can assign a goal to this call to action and monitor it over time to gain a better understanding of your users.

Self Promotion

If you have a great page that is related to the article the user is reading, offer the user related content: for example, 'you may also be interested in...' or 'why don't you take a look at...' sections. Self promote pages within your site and they will be easier for your readers to find.

Ultimately, the user's attention is the overall goal. Although the search term you are targeting is receiving traffic, it may not be the most suitable one for that page. A large percentage of search engine optimisation is strategic and once you have a better understanding of what your users want, and what your website conveys, your site will be able to perform better in the fields of usability and organic search.

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China to investigate online maps that show "wrongful" borders

Wed, 07 May 2008 12:00:00 GMT

Now the world's most populous internet community, China often makes the headlines for its heavy-handed approach towards web censorship. So the news that the Chinese government is investigating search engines that are apparently "spying" on the country will come as no surprise to most.

The Telegraph reports that Min Yiren, China's deputy head of the State Bureau of Surveying and Mapping, has pledged to eliminate online maps that wrongly display the borders of the People's Republic, as well as those which could potentially reveal military secrets. In fact, a total of eight government ministries will be devoting their resources to the task of examining a range of online maps to determine whether or not they put China's "territorial integrity" at risk.

The main offenders, according to Min, are largely China-based sites - including the country's leading search engine, Baidu, and Sohu.com, the Official Internet Content Service Sponsor for the Beijing Olympics this year. However, search giant Google may also be obliged to adhere to any regulations China passes about its online maps, although, as the Telegraph states, "... much of [the search engine's] operations are hosted on Google servers elsewhere, over which the Chinese authorities have no authority, though they can order them to be blocked by the so-called 'Great Firewall' of China."

So what exactly could the Chinese be disputing about the depictions of their online maps? To begin with, there's the issue of Taiwan, an island China still claims as its own - any depiction of Taiwan as an independent territory is sure to be met with disapproval from the Chinese internet police. In addition, satellite images shown on online maps, like Google Earth or Google Maps, could reveal the extent of China's military presence in controversial regions like Tibet, as well as various disputed points along the Chinese-Indian border.

In reality, this crackdown is merely one in a series of measures that the Chinese authorities have been putting in place over the last few months. Following the temporary banning of YouTube and Google News in the wake of the demonstrations in Tibet in March, Min suggested that there could be as many as 10, 000 online maps of China displaying "unapproved" geographical borders. According to WebProNews, Min stated then, "Some websites publish sensitive or confidential geographical information, which might leak State secrets and threaten security."

With the Beijing Olympic Games fast approaching, it's clear that China is trying to play down its military presence and disputed territories as all international eyes turn towards the country this summer - especially after the anti-China protests that blighted the Olympic Torch relay in major cities like London and Paris last month.

However, the actual effect this will have on search engines, and whether they will be forced to comply with China's directives is unclear. Home-grown entities like Baidu and Sohu.com might find they have little choice and if international sites like Google opt to fall under the hammer, the consequences could resonate globally, as other countries with historically contended borders - India, Turkey and Israel, to name just a few - could put pressure on the search giant to make similar changes.

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Yahoo! refuses $48 billion takeover bid from Microsoft

Tue, 06 May 2008 12:00:00 GMT

The Guardian reported that takeover talks between Microsoft and Yahoo! ended on Saturday, with Microsoft increasing its offer for the search engine from its initial bid of $42 billion to $48 billion, reflecting a $33 share price. The offer, made at a meeting between senior staff from both camps in Seattle, was intended to create a technological powerhouse capable of taking on Yahoo!'s arch-rival Google.

However, Yahoo! founders Jerry Yang and David Filo were said to want at least $37 a share, or a price of $53 billion, and their refusal to accept the bid effectively ended a three-month pursuit that was intended to reshape competition for e-mail, search and online advertising.

Commenting on the negotiations, Steve Ballmer, chief executive at Microsoft, said: "Despite our best efforts, including raising our bid by roughly $5bn, Yahoo! has not moved toward accepting our offer. After careful consideration, we believe the economics demanded by Yahoo! do not make sense for us."

In a statement, Yang said he was "incredibly proud" of his team's unity since Microsoft's approach: "With the distraction of Microsoft's unsolicited proposal now behind us, we will be able to focus all of our energies on executing the most important transition in our history so that we can maximise our potential to the benefit of our shareholders, employees, partners and users."

Created 13 years ago by Yang and Filo while still students at Stanford University, Yahoo! was the most popular entry point and search engine for online users worldwide in the late 1990s. But in recent years the engine has been overshadowed by Google and frustrated investors with its drifting strategy and failure to carve out a distinctive path for itself. One of the reasons for Yang and Filo's reluctance to enter negotiations with Microsoft is their protectivness of Yahoo!'s distinctive quirky company culture.

Among Microsoft's reasons for declining to offer more money were the expensive severance benefits included in the contracts of key Yahoo! employees to compensate them in the event of a takeover. The software giant was also wary of Yahoo!'s experimentation in outsourcing certain search advertising to Google, believing this undermined Yahoo!'s key Panama technology and could cause an exodus of disillusioned engineers.

Microsoft insiders insisted that the firm's decision to end talks was a formal decision rather than a negotiating ploy, but industry experts maintain that the software company could try again at a lower price at a later stage should Yahoo! fail to revive its faltering performance.

The search engine braced itself for a backlash from its shareholders following its decision, and saw shares drop 20 percent on Monday when markets opened, trading at $23.02 per share, down from Friday's closing price of $28.67. This was still well above the $19 per share that Yahoo! was trading at when Microsoft made its initial offer three months ago, and the stock closed on Monday at $24.37, down 15 percent, not nearly as bad as some analysts expected.

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Google ask FCC to ensure Verizon commit to open access rules

Tue, 06 May 2008 12:00:00 GMT

Google have filed a petition asking Verizon to pledge that it will commit to the open access rules set by the U.S. Federal Communications Commission on a band of spectrum the company acquired at the recent 700MHz auction.

Verizon was the winner of the C-Block licenses in the 700MHz spectrum, with a bid of $4.7 billion at an auction that raised a record $19.6 billion for the U.S. Treasury. They plan to use the newly acquired spectrum to develop their 4G wireless broadband network, with CEO Lowell McAdam telling investors that "with the 700MHz C Block, we're in a premier position to provide the fastest (network) and most complete footprint across the country".

The FCC had previously set rules for the C Block licenses requiring the winner to allow any device to connect to the network, and to allow any application to be downloaded on those devices. However, Google has concerns about Verizon's commitment to stick to these rules, so much so that they have filed a petition asking the FCC to acquire a pledge from Verizon before granting them the licenses. Google lawyers wrote that "the commission must ensure that Verizon understands that this license obligation means what it says: any apps, any devices".

Verizon initially opposed the open access rules, having filed a lawsuit (which was later dropped) against the FCC asking the agency to drop the rules from the auction. They then later stated that the FCC could not force the auction winners to allow open access. Google contends that Verizon have also previously argued that the rules should only apply to devices that consumers bring to the network, and not to those which Verizon sells to its customers.

Google have always been strong supporters of the open access rules, previously lobbying the FCC to include the rules in the auction. The search engine giant maintains that they are filing the petition to ensure that these rules are followed, not to stop Verizon from gaining the licenses. Richard Whitt, the Washington telecom and media counsel for Google who signed the petition stated that "what it comes down to is we want to make sure that Verizon Wireless acknowledges and accepts the conditions put on these licenses by the majority of the FCC".

Verizon have two weeks to file a reply to Google, however they do not appear to be worried by the petition, a spokesman for the company telling CNET that "Google's filing has no legal standing".

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UK affiliate spending hotspots revealed for first time

Tue, 06 May 2008 12:00:00 GMT

Britain's first survey of affiliate spending on PPC campaigns has been published by bigmouthmedia.

Broken down to regional level, the research provides a fresh perspective on the affiliate map of the UK. Compiled using data from a comprehensive range of networks, the survey reveals that while London and the South East continue to dominate the marketplace, spending elsewhere is beginning to reach significant levels.

"It's very encouraging to see that Scottish affiliates drive 10% of the PPC spend when the 2007 Affiliate Census showed that just 6% of affiliates were based in Scotland. With so many of the affiliate networks based in the South you could be fooled into thinking that this is a London based industry but the spread throughout the UK shows that Affiliate Marketing is an industry where geography doesn't matter," said Fraser Edwards of www.affiliateblog.co.uk.

"Networks & merchants would do well to take note of the results of this survey and ensure they offer the same events and support to affiliates in the UK's regions as they do in London."

Conducted during the first quarter of 2008, the research shows that affiliate spend is fairly evenly spread across the country. While a gap exists between areas like Northern Ireland - where affiliates expend the lowest amount of money on PPC - and high-spending London, in other regions expenditure is now broadly comparable to the size of their local populations and economies.

The analysts behind the report point out that a low percentage of the overall spend does not necessarily equate to a lack of regional affiliate activity however. Instead of investing largely in PPC, many networks are now promoting their sites through search engine optimisation, email marketing or social media.

"It is notable that more than two thirds of all UK affiliate spend identified in the bigmouthmedia survey was from outside London and the South East. We see this as a reflection of the fact that whilst there is still a general London centricity in terms of the affiliate networks themselves, most of the investment and enterprise that is actually driving the process comes pretty well evenly distributed from all corners of the UK," said ClickAngel Director Ed Wilkinson.

View our complete UK affliates PPC spending survey here.

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