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Kanoodle Kontext to rival AdSense

New contextual advertising option for site owners

     
7:58 am on Dec 17, 2003 (gmt 0)

WebmasterWorld Senior Member jenstar is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Kanoodle plans to launch a new contextual advertising program, Kanoodle Kontext, which they see as a direct rival to Google AdSense.

"Google is clearly the top player right now that's most focused on content outside of us," Podell said. "I still think we've got the better product."

It will work quite differently, with Kanoodle selling contextual advertising listings separately from the paid search results, and advertisers will bid on categories rather than keywords. Advertisers will have much more flexibility with their ads, such as displaying ads at certain times of the day.

It sounds as though they are really aiming at advertisers who are unhappy with certain aspects of the AdSense program. Interestingly, Kanoodle hired the management team from the company Sprinks - a company that Google acquired in October and shut down at the end of November. This will be interesting to see played out, as many publishers (particularly ones ousted from AdSense) are anxiously awaiting bigger player contextual advertising companies, such as AdSonar.

Kanoodle Kontext will launch in a few months.

More of the article here [dmnews.com]

9:03 am on Dec 17, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Nice find Jen, Adsense could do with a bit of competition.

DaveN

More news here cbs [cbs.marketwatch.com]

10:10 am on Dec 17, 2003 (gmt 0)

10+ Year Member



Do people think the competition will push publishers revenues up or ... advertisers costs down?
2:08 pm on Dec 17, 2003 (gmt 0)

10+ Year Member



Do people think the competition will push publishers revenues up or ... advertisers costs down?

In the long run, probably neither, except for those publishers who may qualify for one program but not another, and those publishers who may be terminated from one program. It will just spread the business among additional resources. Google is likely to see some impact though.

2:32 pm on Dec 17, 2003 (gmt 0)

10+ Year Member



"Google is clearly the top player right now that's most focused on content outside of us," Podell said. "I still think we've got the better product."

This is the spirit any company should have, if they want to compete with G!

That shud be gr8 news.

Nice find Jen!

Cheers

2:55 pm on Dec 17, 2003 (gmt 0)



Nice find Jen, Adsense could do with a bit of competition.

It's competition, I guess, but not completely direct competition. It really sounds more like Sprinks than AdSense.

Sprinks worked well for certain topics but not for others, and I expect the same will be true of Kanoodle Kontext. For example, if you're selling rail passes or car rental in Europes, your ad might be of interest to readers of any site about European travel or single-country travel in France, Germany, Italy, etc. But if you're selling vacation rentals on Ibiza or a B&B in Lyon, Google's AdSense is likely to work a lot better because your product and prospects are so narrowly targeted.

IMHO, the program's biggest challenges will be how to reach critical mass and how to win the interest and trust of mainstream advertisers and media buyers.

3:00 pm on Dec 17, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Thanks for that, Jen.
Along with AdSonar and TCLA, I've seen another company recently, Bannerboxes, which looks like it's trying to gear up as a potential rival to AdSense.

Again, it creates contextual adverts by topic, I think, rather than keyword, but possibly its main advantage over AdSense is that the advertisers as well as the publishers have much more control. When publishers sign up, they indicate where they will place adverts on their site and the PPC rates they willing to accept. Advertisers can then choose which publisher sites to advertise on.

Evidently it's not automated to the degree that AdSense is but then it doesn't need to be, because there are far fewer publishers and advertisers.

What bothers me though is, once an advertiser and publisher are in contact with each other, what's to stop them negotiating independently from BannerBoxes and cutting out the middleman commission?

Does Kanoodle Kontext have a live site yet? I couldn't find one on Google... (quelle surprise)

3:20 pm on Dec 17, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Also, once enough players do this, you can call it a new market. Once you have that you will have specialisation for hte competitive advantage. Then perhaps we will have programs to suit any taste, budget and offering.

SN

3:26 pm on Dec 17, 2003 (gmt 0)

WebmasterWorld Senior Member jenstar is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Does Kanoodle Kontext have a live site yet? I couldn't find one on Google... (quelle surprise)

The only thing on Kanoodle's site right now is the press release [kanoodle.com]. We should be seeing something about it soon, though.

6:56 pm on Dec 17, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



The more the merrier. Soon we'll be able to turn the tables on the PPC providers like the big portals did and demand a bigger piece of the pie since it's OUR traffic.

In the end, it will all come to money and what's the max CPCxCTR I can get per month.

Now go kill eachother and may the best paying contextual ad provider win :)

7:37 pm on Dec 17, 2003 (gmt 0)

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Given the Kanoodle's hard won reputation for sending junk traffic to advertisers, I wonder how many people will actually advertise their sites using Kanoodle's contextual advertising program, even if they have better product features when compared with adsense.
7:45 pm on Dec 17, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I agree, they might now start to try and change their image, but they screwed over so many advertisers, I belive it will be a hard sell to new advertisers.

CompWorld

7:46 pm on Dec 17, 2003 (gmt 0)

10+ Year Member



At the moment I am using BannerBoxes as my AdSense alternate on one site. It isn't by topic exactly - it's by keyword, but I choose the keywords which the ads are targetted to. The revenue is pitiful - it seems to be less than 1 cent per click. But their minimum payout is just $5.
8:10 pm on Dec 17, 2003 (gmt 0)

10+ Year Member



In short, when Google buys Kanoodle to kill a contextual competitor in the way they did Sprinks, they'll make sure the contract specifies that the management can't move to another company and reestablish a potential rival :)
9:58 pm on Dec 17, 2003 (gmt 0)

WebmasterWorld Senior Member jeremy_goodrich is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Lol, Danny - you mean the folks in charge shouldn't just hop from company to company, giving the green light to Google that they need to be purchased?

Any competition in the market's a great thing, and will keep the programs offering strong to encourage more sign ups. CPC advertising just seems to be getting hotter & hotter these days.

10:44 pm on Dec 17, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



"In short, when Google buys Kanoodle to kill a contextual competitor in the way they did Sprinks"

Can someone say Anti-trust objections via the DOJ and EU? I am sure that the Google people know that they are closely being watched on what they do by the DOJ, EU, and watchdog groups. I would be surprised to see them allow Google acquire any major competitor.

It just won't happen; and it shouldn't. Because us small guys would be the ones that are hurting do to the unfair competitive advantage Google would have in the contextual marketplace. Don't forget, Yahoo's Overture is also coming out with a competitive contextual program as well.

Something to think about.

CompWorld

11:17 pm on Dec 17, 2003 (gmt 0)



would be surprised to see them allow Google acquire any major competitor.

As long as Google has Overture as a major competitor, it's unlikely that the federal government would object to Google's purchase of a minor competitor like Sprinks or, for that matter, Kanoodle. (Especially under the current administration.)

1:31 am on Dec 18, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



U.S. Bancorp Piper Jaffray estimates contextual advertising will generate $100 million this year, growing to $1.4 billion by 2008.

Anyone else thinks this figure is small for this year? I was estimating it at twice that...

7:05 am on Dec 18, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



"Anyone else thinks this figure is small for this year?"

If it is only $100 million, then readers of this forum must be geneating a fairly sizable portion of that.

4:57 pm on Dec 20, 2003 (gmt 0)

10+ Year Member



i think it is hard to have a real competitor for google as they are just the biggest "trafficers".
5:08 pm on Dec 20, 2003 (gmt 0)

10+ Year Member



" The Search Box Program credits your bid account 30% (up to 3Ē) of the bidding price every time a visitor clicks on a paid search result."

LOL.

UP to 3 cents. LOOOOOL

7:35 pm on Jan 3, 2004 (gmt 0)

10+ Year Member



>once an advertiser and publisher are in contact with each other, what's to stop them negotiating >independently from BannerBoxes and cutting out the middleman commission?

Many advertisers only trust that middleman. But itīs easier to trust on Google, than on BannerBoxes... but even so, maybe itīs easier to trust on BannerBoxes than on johndoe.com , who can fake clicks, and no fraud system will detect it, because heīs the one running it.
Most independent sites have this problem. They have to proove that they are an honest business. That faking results would only ruin their business on the long run.

Best Regards,

Nuno

8:00 pm on Jan 8, 2004 (gmt 0)

10+ Year Member



In another thread here (over on Overture)
[webmasterworld.com...]
there is a discussion how Overture is planning on separating their contextual/editorial ads with their search engine ads so marketers. Kanoodle has beat them to the punch:

+++

January 7, 2004 - Kanoodle.com, Inc., a leading provider of sponsored listings for search and content, today announced that MarketWatch.com, Inc. (NASDAQ:MKTW), a leading multimedia publisher of business news and information, has selected Kanoodle.com to provide content-targeted sponsored links on its Web sites. Kanoodle.com also announced today the launch of its content-targeted sponsored links product, "ContextTarget(tm)," the only available sponsored links product built solely for content targeting.

Under the terms of the deal, Kanoodle.com will provide sponsored links on MarketWatch's award-winning sites, CBS MarketWatch and BigCharts.

"The focus of our online business is the publishing of real-time business news content, and we believe that our editorial pages require a unique solution rather than an extension of a keyword search," said Bill Bishop, executive vice president and general manager of MarketWatch.com. "We're confident that Kanoodle.com's ContextTarget is an excellent product for our content-targeted sponsored links program."

"ContextTarget represents a quantum leap ahead in content-targeted sponsored links for both advertisers and publishers," said Lance Podell, president of Kanoodle.com's Content Division. "It is the only product in the space that is independent from keyword search advertising, so advertisers can plan, buy, measure and optimize their content buys separately from their search buys. For publishers, we are offering multiple forms of ad blocking and guarantee that we will only run relevant ads so they don't have to worry about inappropriate ads appearing next to their content."

"MarketWatch.com is the best partner to anchor our finance vertical," Podell continued. "Adding the quality and volume of their audience makes ContextTarget a 'must buy' for financial services advertisers."

The launch of "ContextTarget(tm)" comes just shortly after Kanoodle.com's announcement of the close of venture financing from Insight Venture Partners and the hire of three managers formerly of Sprinks, the innovators of content-targeted sponsored links.

8:44 pm on Jan 8, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Kanoodle has beat them to the punch

But their links seemed to be broken yesterday and kind of working today so I'm not sure first to market was a good thing in this case. It's almost as if they threw it up for that reason only and didn't test it well enough.

JAG

9:00 pm on Jan 8, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I would expect to earn 1/20th of what Google pays considering the low, low bids on kanoodle.
9:02 pm on Jan 8, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



That might be since the highest paying ad on cbs yesterday was $0.10. Even so, the highest per click may not mean you will get the most money. Click through has to come into play also and if Kanoodle can manage to up the rate then you may end up making more from them.

JAG

2:30 am on Jan 9, 2004 (gmt 0)

WebmasterWorld Senior Member jenstar is a WebmasterWorld Top Contributor of All Time 10+ Year Member



cib258 - there is also a longer discussion on the Kanoodle ContextMatch going live here [webmasterworld.com]
5:57 am on Jan 9, 2004 (gmt 0)

10+ Year Member



Too bad kanoodle doesnt have a "google"
to show millions search results of advertising to. They may have some partners but will never ever match google. Unless of course they somehow team up with microsoft.

Fact is, too many people trust google, its up to google to stuff that reputation up, not kanoodles Kontext.

 

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