Internet Marketing Articles June, 2003

 

June 27, 2003

Michigan to Create Nation's First 'Do Not Email List'

In what is being called "the toughest anti-spam bill in the nation" by Senator Michael Bishop, Michigan's state Senate unanimously passed a law on Tuesday that mandates the creation and management of a state do-not-email list.

Although the law still needs approval in the state's house of representatives and would need to be signed into law by Governor Jennifer Granholm, supporters are confident of its adoption.

Under the terms of the bill, Michigan residents desiring to block spam email could register their e-mail addresses on the do-not-email list for $5 per email account for 3 years of coverage. Businesses would pay $150 to give spam protection to all employees.

The law would ban marketers from sending e-mail solicitations to those on the list. Exclusions would include email users with whom marketers already have a prior business relationship. Although only a misdemeanor charge, the punishment for offenders is up to 1 year in prison and up to $10,000 per email.

Although Michigan is now one of 32 states to have antispam laws on the books, The Criminal Spam Act of 2003 just introduced by federal legislators would supercede all state sponsored spam laws.

[Complete Story at Internetnews.com: Michigan Senate Passes Law Creating Do-Not-E-mail List ]

June 27, 2003

Google Now Offering Popup Blocker For Toobar Users

The latest Web giant to Integrate popup blocking technology, Google has released a beta version of its popular toolbar that now includes interstitial ad blocking for Microsoft Internet Explorer users.

The optional feature in Google Toolbar 2.0 allows users to remove all popups or allows popups to display on your computer on a one-time or per site basis. The feature can also be disabled. Google also added a form "auto fill" feature with password protection to the new version.

The main impetus for Google to add popup blocking comes from "user experience" research and data. Numerous studies have shown that the adoption of popup blocking features by Internet users is high, mainly due to the annoyance level that popup ads have created since their ushering into mainstream advertising.

Many Internet giants such as AOL and Earthlink have adopted popup blocking technology and even showcase it in their marketing and promotion. The lastest addition of this technology at Google is part of a larger trend on the Internet to enhance Internet user experience.

You can expect more of the same from other high profile Internet companies in the near future. Ultimately, popup blocking technology could be the death nell to this controversial advertising method.

[Complete Story at Internetnews.com: Google's New Toolbar Blocks Pop-Ups ]

 

June 26, 2003

Has your PC been targeted for 'Spamination'?

The latest virus to hit business and personal computers this weeek was a new strain of the SOBIG WORM, which installs a small e-mail program on infected machines which can be used to infect other machines in addition to distibuting spam.

Hijacked computers are the new, preferred distribution method for spammers sending out their unwanted mails. It's also next to impossible to trace the spam back to the original sender. In effect, the infected machines become "spam satellites". It's estimated that nearly 70% of all spam today is being sent from unwitting, hijacked computers.

The new strain of SOBIG spreads as a .zip file rather than the usual .exe format. Although many companies block or filter .exe and other file attachments, many let .zip files are allowed through to e-mail recipients. Making matters worse, .zip attachments can be mistakenly opened with the streamlined MS Outlook under the Windows XP operating system.

SOBIG also does not use traditional methods of spreading itself, such as using the infected machine's email address book. Instead, it may send a user to a spoofed Microsoft "critical update" downloads page.

One variety of spam message sent to recipients, Downloader-BN, fooled people into downloading a Trojan horse to their computers, which could be used to send spam as well as spread the infection to other machines using the same ISP.

As of the writing of this news summary, my laptop computer has experienced a dozen hacker/intrusion attempts over the last three weeks. Fortunately, I use firewall security software that blocks intruders. It let's me know when intrusion attempts occur, the nature of the threat (high, medium or low risk) as well as the type of threat (trojan horse or other malicious code).

If used correctly, firewall software can stop hackers dead in their tracks. If you are not running it, you are risking identity and financial theft if you have personal information like social security, bank account, passwords, or credit card information on your computer.

Although the current version of SOBIG is set to expire in a few weeks, the developer has been releasing updated versions about every 3-4 weeks. Microsoft has also released patches for Windows users to close the security holes in certain media applications as well as Internet Explorer.

Analysts agree that the coupling of viruses and spam is sure to continue because of the increased anonymity and the large financial incentives for spammers.

[Complete Story at MSN.com: Virus turns PCs into spam machines ]

 

June 25, 2003

Despondent Over Recent 'Google Dances'?

After spending this morning reading about 300 posts on various search engine and webmaster forums, I was struck by the huge number of webmasters, marketers and SEO types that are panic-stricken over recent ranking algorithm changes over at Momma G.

I must admit, some of my sites were negatively affected at first. I too felt the burn, heart-throb and panic that I'm sure many of my webmaster peers also felt. But my pages are now gradually being restored. It seems Google is uploading their updates at the individual data center level, not all at once, which explains some of the weird happenings.

This morning's forum exercise was quite interesting because it seems most webmasters are still convinced that a Google-heavy search engine traffic strategy reigns supreme. Amidst the problems (perceived and real) with the most recent Google updates (April & May specifically), I was blown away by the number of complaints as well as the visceral angst and confusion about them.

For example, people are freaking out over Google's PageRank Toolbar: gray bars, white bars, what it used to mean, what it might mean today, etc. People are upset that their websites are appearing and disappearing from the Google index and what it might mean. Is the site going to disappear for good or will it stick? Let me tell you, there is real, palpable anxiety going on out there in the web promotion world.

Then, there's all this talk about 'Dominic', 'Esmarelda' and now 'Francine', all pet names associated with Google index updates.

But, the one piece of wisdom that kept popping up in forum threads from experienced webmasters and marketers was this:

DO NOT put all your traffic-generation eggs in one basket!

The recent changes at Google, the new updates and the transitioning over to new algorithms should be a big lesson to a lot of webmasters. For some strange reason it caught a lot of SEO's and web marketers off guard. Did they think Google would never radically alter it's formulas? Maybe they thought it would happen gradually and they could stay ahead of the change curve.

How can you remove your dependendency on a single-source of free traffic like Google? By putting yourself back in control. It just makes good business sense that you treat Google to be "one small part" of a total search engine promotion strategy.

Until we webmasters and businesspeople know exactly what's going on at Google, all we can do is build quality websites and pages, with relevant content and wait for Google to work out the kinks with it's new system.

I think all of this is a sign of things to come (algorithm changes). Eventually, SEO's and marketers will probably find their Google-legs again when the changes have settled in and are more understood.

 

June 24, 2003

House Targets Offshore Casinos

Do you operate, market, affiliate with or gamble on offshore Internet casinos? You may want to rethink your activities.

The U.S. House of Representatives has recently voted to support legislation that will ban credit card and other electronic payments to offshore Internet casinos. State approved casinos are not affected due to a separate no-exemptions bill which failed to receive House approval last week.

House Resolution 2143, the "Unlawful Internet Gambling Funding Prohibition Act", passed overwhelmingly and imparts regulations for cutting off the revenue streams to offshore Net gambling sites. The resolution was created in response to concerns over organized crime involvement in the Internet casino business as well as protecting our nation's youth from easy access to gambling sites. It's viewed as an important new tool to fight illegal Internet gambling.

It should be noted that the bill only requires financial institutions to establish procedures to find and block gambler payments to offshore sites. In other words, financial transactions would not be approved by your credit card company.

The foundation for the new legislation:

The US Justice Department claims existing laws already make Internet gambling illegal for American citizens, such as the 1961 Wire Wager Act, which prevents sports bets from being placed over telephone lines. Flying in the face of this argument is the fact that a recent Federal Appeals Court decision claimed the 1961 Wire Wager Act does not apply to placing casino bets on the Internet. The appeal decision is now itself being appealed, so the jury may be out on this one for awhile.

In reality, the effects of any legislation are unlikely to hinder or stop the companies operating offshore, since US law does not apply to countries where these gambling sites operate. That means the new laws will have to focus on the individual gamblers themselves.

FYI, In 2002, it's estimated that Internet gambling sites pulled in more than $4 billion in revenue. It's no wonder these sites are all over the Net.

[Complete Story at Internetnews.com: House Passes Internet Anti-Gambling Bill ]

 

 

June 24, 2003

Lawsuits Take Aim At ISPs' Overzealous Antispam Procedures

Both Congress and the FTC last week announced tougher actions in the near future (in the form of new legislation among other things) to address the Spam epidemic in the US.

But amidst all the Spam controversy and corresponding vows for tougher controls, several lawsuits and new legislation are now opening the eyes of ISP's about their legal responsibilities to customers. Peter Hall, an independent filmaker, has launched a 2 Million dollar lawsuit alleging his ISP (Earthlink) incorrectly terminated his email account and as a result lost significant income that was to be derived from email promotion of his film "Delinquent". The case is being heard in a New York Federal court this week.

In a separate case, A canadian woman is suing for more than $100,000 in damages because her ISP held and failed to deliver or bounce her emails because of a "past due" account status. In California, Governor Gray Davis has signed a bill that requires ISP's to give 30 days' notice before terminating e-mail accounts.

Whether you realize it or not, these cases, particularly the pending Hall case may impact several areas of the Spam controversy and ultimately create some chilling legal precedents for both ISP's and customers.

For example, the questionable concept of placing alleged Spammers on antispam blacklists may be challenged in court. Another legal "slippery slope" has to do with the procedures ISP's use in determining and handling a customer account they have concluded is involved in Spam.

If an ISP incorrecly shuts down email accounts without 'due process' to ensure that the account is indeed involved in Spamming, ISP's could be in for serious legal battles. Libel lawsuits have already been launched by several people who claim their reputations were irreparably harmed by false Spam allegations.

Lastly, the Hall case will argue that ISP's and their services fall into a "public interest" category and as such, have responsibilities and liabilities beyond the scope of normal business-customer relationships. If the courts agree, Spammers will have more power and even less fear than they currently enjoy, making the battle against Spam much more difficult.

[Complete Story at CNET News: Setting the Rules for ISPs and Spammers ]

 

June 23, 2003

Google Launches New, User-driven Content Ad Service

Last week Google launched its self-service ad program for publishers to provide qualified contextual advertising to its users.

The new service is Google's attempt to compete head on with archrival Overture in this increasingly competitive market space. Primedia's Sprinks division is also a competitor.

The service is not only free for publishers, Google actually pays high-value niche sites each time a visitor clicks a link. Links can be textual, traditional banners and skyscraper ads. Google has not announced or publicized its revenue split with participating publishers.

The deal signed with AdSense allows Web publishers to apply for Google's content ad program online. After filling out an online form, Google then checks the quality and popularity of applicant websites, rejecting those with inadequate or substandard content or ineffectual traffic.

The qualification process takes about 2-3 days, according to Google. If accepted, the publisher is supplied a set of HTML code to be added to existing web pages which allows links from the ad program to be delivered to the target site.

Google has also signed distribution channel agreements with Burst Media, Lycos Europe and FastClick to deliver it's contextual ad links.

The new ad content program is actually a two-pronged strategy by Google:

First, Google will tap into the increasing market demand for contextual advertising. Secondly, the program will help bolster the distribution of its AdWords program, which is lagging in popularity, usage and ROI as compared with Overture (according to a May 2003 study by Comscore).

[Complete Story at Internetnews.com: Google Starts Self-Service for Content Ads ]

 

June 23, 2003

Clever Domain Names Being Used for e-fraud

A fraud sting hit electronics retailing giant "Best Buy" last week. The fraudulent activities were based on a simple concept of spam e-mailing a bogus hyperlink to email users. The link tricked users into thinking they were going to Best Buy's website, but a close examination of the site's attributes proved otherwise.

The click-through actually sent users over to an imposter website that looked quite similar to Best Buy's site. It also had a domain name similar to Best Buy's. The bogus site asked users for personal information such as credit card & social security numbers.

The recent fraud perpetrated on Best Buy has some people concerned that online merchants are indirectly contributing to the chicanery. Merchants that use clever domain names, sub domains and redirects are actually "conditioning users" to expect and accept these conventions from the merchant's promotion strategy. For example, Yahoo.com uses sub domains like news.yahoo.com to jettison users over to their news portal.

Many companies, especially the E-tailing sector are now rethinking their URL branding strategies, including not engaging in heavy use of multiple domains associated with a single brand and minimizing URL redirects for promotions.

The downside to this is that making changes to your website is not always easy. A business may be forced to use "one-off" domain names because their name is already taken, or because they may use third party companies in outsourced promotion arrangements. Making matters worse, the use of multiple domain names associated with one brand is fairly common today.

[Complete Story at Internetnews.com: Cutesy Domain Names Making Online Fraud Easier ]