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About Me

Bill Tancer is the general manager of global research at Hitwise, the world’s leading online competitive intelligence services. Tancer and his team of analysts are widely quoted throughout the industry on the latest Internet trends. He appears as a frequent guest on CNBC, has been quoted in The Wall Street Journal, The New York Times, the Washington Post and USAToday on topics ranging from the state of e-commerce to predicting American Idol winners using search term research. Tancer also writes a weekly column for Time magazine (Time.com) entitled "The Science of Search.".

About Hitwise

Hitwise is the leading online competitive intelligence service. Only Hitwise provides its 1,400 clients around the world with daily insights on how their customers interact with a broad range of competitive websites, and how their competitors use different tactics to attract online customers.

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Guest Column For the Times UK

By admin | February 28, 2009

When times are bad, click on a cup of tea

Close analysis of internet searches shows how we really react to events like the global downturn

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On stage in a crowded meeting room in Central London in 2006, I impulsively decided to go out on a limb in front of a crowd of 200 online marketing professionals and make another celebrity ballroom prediction. In the States I had developed a reputation for analysing reality television contests by measuring contestant popularity by the volume of searches for those celebrities on engines such as Google, Yahoo Search and MSN Search. It was eight weeks before the finale of Strictly Come Dancing but the search volume for Mark Ramprakash was off the charts. A lot can happen in eight weeks, but the overwhelming data meant that I just had to make this one prediction.

Here at Hitwise, with an aggregate and anonymous sample of more than 25 million internet users worldwide, and more than eight million specific to the UK, we have the ability to analyse several million search terms each week. As search engines become more integral to our lives, the aggregate volume of searches on specific terms provides insights into how events in the outside world affect us. Reality television predictions were a proof of concept.

The idea of predicting reality television show results using search data first occurred to me earlier that year while watching the American show Dancing with the Stars. As the host, Tom Bergeron, described the voting process (a portion of the vote was determined by audience calls, texts and web votes) I reasoned that searches for celebrities participating in the show should correlate with their popularity and, since the contests were very well produced popularity contests, I should be able to predict a winner.

My first prediction, during the 2006 season of the show, was based on the impressive volume of searches for Stacy Keibler, a leggy blonde female wrestler. Unfortunately, that prediction didn’t go quite as well: Keibler took third place. In a post mortem we determined that searches for Keibler centred more on quests for “hot pictures” than her dancing prowess. By factoring in search intent (what we internally refer to as a Stacy Keibler correction coefficient), our predictions have become increasingly accurate. This online/offline correlation was the first step in finding what other insights were possible.

Starting with simple observations, we’ve studied searches for diets, which reach their yearly peak on the first week of the new year, before crashing only a week later. Conclusion: our commitments to shed pounds are remarkably short-lived. We can also gain insight into perceptions of world events.

What’s commonly referred to as cognitive dissonance describes our inner conflict of answering questions honestly versus painting ourselves in the best possible light. When giving lectures I have an extreme method of illustrating how cognitive dissonance can lead to dramatically different results.

When speaking to large audiences across the US, I ask, by show of hands, who regularly visits adult entertainment websites. To date, after asking that question to several thousand conference attendees, not one person has raised their hand. In other words, based on this sample, the internet is porn-free. When we analysed the aggregate behaviour of ten million anonymous internet users, more than 11 per cent of all website visits are going to sites in the “adult” category. Somebody’s not telling the truth. While this may be an extreme example, cognitive dissonance can distort our understanding of much more mundane activity.

How would you answer the question: how has the economy changed your online behaviour? Would you answer that you’ve become more obsessed with celebrities? In America we noticed that, as the economy worsened in the autumn, the most affluent internet users decreased their visits to online brokerage sites, preferring instead to frequent celebrity blogs such as Perezhilton.com and TMZ.com. Here in the UK, celebrity obsession has taken a more financial bent with the “money-saving expert” Martin Lewis garnering more searches than the usual Britney Spears or X-Factor contestants.

In the US, apart from the expected increase in visits to employment, financial news and discount coupon sites, internet users are increasingly engaged in diversionary activities, visiting online game, social networking and movie rental sites, using the internet as an escape from troubling financial news.

Apparently the diversions of the British internet user during these trying times are more liquid in nature. According to Hitwise, searches for afternoon tea have increased by 67 per cent over the past 12 months. In the past four weeks there were more than 1,500 variations of “afternoon tea” queries. Surprisingly, the venues garnering the most searches were high-end establishments such as Claridge’s, The Ritz, and Fortnum & Mason. The most visited restaurant site is Beer in the Evening (beerintheevening.com).

As our economic challenges continue into unprecedented territory, aggregate search data is likely to provide us with a new perspective on changing consumer sentiment - as well as reality television winners. If you don’t follow Strictly Come Dancing, the 2006 winner was Mark Ramprakash.

Bill Tancer is the author of Click - What We Do Online and Why it Matters

Reprinted from Times UK

Topics: economics | No Comments »

New Click Column in the Wall Street Journal

By admin | February 21, 2009

I’ve started a new column that will appear regularly in the Wall Street Journal (online at WSJ.com).  Here’s my first piece on Hulu.com.

In “Alec in Huluwood,” Hulu.com’s first-ever Super Bowl TV spot, Alec Baldwin describes how the streaming video site, a joint venture between NBC Universal and News Corp., will allow television to fully, finally succeed in turning our brains to mush.

It’s debatable, of course, whether online episodes of “Family Guy” and “Colbert” rot our crania more, or faster, than quick-hit clips of dramatic chipmunks and skateboarding cats. But this much is clear: The two kinds of video owe their success to two very different demographic groups of viewers.

When you look at the audience of well-known Web 2.0 properties like YouTube, Facebook, MySpace or Twitter, their rapid adoption was fueled by 18- to 24-year-olds. At YouTube’s launch in late 2005, more than 50% of its site visitors were 18- to 24-year-olds.

This was not the case with Hulu.com. When the company launched its public site last March, the largest age group visiting the site were those Internet visitors over 55 years old, accounting for 47% of all site visits, while traditionally younger early adopters accounted for only 17% of traffic.

It later became clear that what first appeared to be a data anomaly was the result of Hulu.com’s very Web 1.0 launch strategy, which used articles in the New York Times and other newspapers to attract viewers. As a result, after its release in October 2007, more than 20% of Hulu’s traffic came from newspaper Web sites. The largest age demographic for visitors to print news Web sites is older Internet users over the age of 55.

By comparison, when YouTube launched in late 2005, traffic from print news Web sites accounted for less than 0.5% of its traffic. One of YouTube’s largest sources of traffic at launch was from Web-based email services, at 19%, as its early adopters forwarded their favorite clips to their network of friends.

Of course, it wasn’t just the launch strategy that attracted older viewers to Hulu. The content on Hulu — primarily network television shows from NBC and Fox — was already in the sweet spot of the so-called Greatest Generation.

Still, in its first months Hulu.com experienced slow ramp, hovering around the No. 20 position of online video sites during the first weeks of public availability in March 2008. In the last six months Hulu.com’s visits have accelerated, reaching its high point in visits immediately following Sunday’s commercial. On Monday, Feb. 2, it garnered 2.5% of all visits to the category, claiming the No. 4 position behind YouTube, Google Video and MySpace Video, according to Hitwise.

In its current position, Hulu is still playing catch up to YouTube, which captures nearly 10 times the amount of traffic. However, search term data reveals that Hulu may have an advantage over YouTube. Of the top 20 search terms entered into YouTube’s site search, 15 were seeking broadcast and cable television content in the form of music videos, movie trailers and episodes of “Family Guy,” a Fox animated sitcom, content that Hulu has license to stream. YouTube often carries similar clips, but without a content license they are subject to removal based on the content owner’s request.

Nearing the one-year anniversary of its public launch, Hulu’s age demographics have begun to normalize with 25- to 34-year-olds taking over as the largest age group, with 29.2% of all visits signaling that Hulu may be entering its mass adoption phase. For the month of January 2009, on a percentage basis, Hulu had a stronger base of 25- to 44-year-olds, when compared to YouTube, while 18- to 24-year-old YouTube users outnumbered Hulu’s by two to one.

If Alec’s assertion on “Huluwood” is true, that Hulu has brought us to the convergence of television and computer, then the future success of online video may have less to do with the 18- to 24-year-old viral network effect and more to do with the power of traditional media players.

Reprinted from the Wall Street Journal

Topics: Uncategorized | No Comments »

Dancing with the Stars - Right Again!

By admin | November 26, 2008

Mark us down for another reality television show prediction. Yesterday we posted that Brooke Burke (despite a significant Stacy Keibler Correction Coefficient) would win dancing with the stars.  As many of you noticed however, I accidently left Lance Bass off of the final chart.  Here’s a corrected chart:

Topics: Uncategorized | No Comments »

Dancing with the Stars - Season 7

By admin | November 25, 2008

I’ve had a number of requests to apply the arbitrage/prediction model we discussed in Click for the season finale of Dancing with the Stars this evening.   First a chart of searches on the remaining contestants:

Television host/personality Brooke Burke has maintained a consistant lead in searches over the course of the season, but lets not forget the infamous Stacy Keibler Correction Coefficient that caused an incorrect prediction in the second season of the show.

Sure enough, adding to the complexity of our prediction is the fact that Burke has posed for Playboy, filling top search terms with requests for “Brooke Burke Hot Photos” and “Brooke Burke Nude.”  Surprisingly, teen Hannah Montana heartthrob Cody Lindley has some SKCC searches such as “Codey Lindley shirtless” clouding his search term popularity.  Footwork challenged Warren Sapp, whose popularity has surged over the last week is clear of any Keibleresque search term.

Unfortunately, only 50% of DWTS final results are attributable to viewer popularity, the rest is in the hands of the judges, who arguably are scoring based on dance merit.  Despite the SKCC issues, based on her search popularity and consistantly high judges scores, I’m calling this one in favor of Brooke Burke.

Topics: Uncategorized | No Comments »

Lipstick and the Narrative Fallacy

By admin | November 25, 2008

One of my favorite recent books is Nassim Taleb’s Black Swan.  While reading the book last year, I was struck by a point that Nasssim made regarding the narrative fallacy, or our inclination as analysts to only look at data in the light of our chosen hypothesis (highlighting data that makes our point and ignoring data that might be in opposition to our argument).

Just recently I decided to take a look at the “Lipstick Theory,” the idea that in tough economic times purchases of affordable luxuries like lipstick can increase, a theory espoused by Leonard Lauder the charman of Estee Lauder Companies.

Of course a quick chart of “lipstick” searches was in order.  To my surprise, there was a massive spike that coincided perfectly with the Wall Street debacle.  Unfortunately my joy at confirming the Lauder theory was short lived, a quick check of where searchers were going after searching on “lipstick” revealed that they weren’t proceeding to online retailers but rather the political category.  The most popular variation of lipstick searches during the spike “Lipstick on a pitbull”.

Topics: economics | No Comments »

Wall Street Troubles and Internet Behavior

By admin | September 29, 2008

Several weeks ago I had the pleasure of sitting down with Maurna Desmond at Forbes to discuss Hitwise data and what light Internet behavior might shed on our reaction to the Wall Street crisis.  In preperation for our interview (you can view the video here), Maurna had an interesting idea.  What if we narrowed our view of online behavior to the richest U.S. Internet visitors, has their behavior changed over the last year.  Indeed, if we look at Claritas PRIZM segment #1, the Upper Crust (most affluent segment in the U.S.) one year ago was acting as we’d expect online, visiting their stock portfolios.  Interestingly, when we did the same analysis as of one month ago, stock portfolios were at the bottom of the list for this same segment.

Our data was telling us that this affluent segment was visiting diversionary sites like celebrity blogs and game sites rather than visiting their shrinking portfolios.

In preparation for my Interview on NPR’s Talk of the Nation last week, I learned another interesting facet to our data, search terms containing “portfolio” and “login” were on the increase.  It seems that many of us, facing the gloomy news from the center of our financial universe were once again interested in viewing our portfolio.  Based on the term patterns though, it appears many of us have been away so long, we forgot how to log-in.

Topics: Uncategorized | No Comments »

Click Across America Contest

By admin | September 3, 2008

New authors can pick-up some weird habits.  Specifically, we obsessively check our Amazon rankings, and also have the urge to drop into every conceivable bookstore in our path to look for book copies and how they’re displayed.  This evening I received an email from my brother-in-law Jonathan who noticed copies of Click at Book Passage in the San Francisco Ferry Building and snapped the picture below.

After seeing Jonathan’s snapshot, I decided to include everyone in my new obsession.  If you see Click in your local bookstore, snap a shot with your camera/phone, post the picture to your favorite site and send me the URL (along with the store where you found Click) in the comment section here.  I’ll repost the pictures here.  The best pictures of the bunch will get a free signed book.

You can also email your pictures to bill@billtancer.com.

Topics: Uncategorized | 2 Comments »

The Baby Names Conundrum

By admin | September 3, 2008

I had a great radio interview this afternoon with Krys Boyd on NPR affiliate KERA in North Texas.  During the call Krys asked if I had any unsolved mysteries and I mentioned the baby names chart.  While the spikes have dissipated since I first drew this chart two years ago, there are still some dramatic traffic increases.  Any ideas on what caused these spikes?

Here’s a comment from Jessica who responded before I could get this chart posted.

I heard your interview on Think from NPR. You mentioned the odd spikes in baby name searches. I have a couple suggestions that might help you. Women find out the sex of the their baby in their second trimester. They may also be looking for names at the end of their pregancy, in anticipation of the delivery. I would also consider the first month of pregnancy since women find out they are pregnant within 4 weeks of conception. So I would plot the spikes in births and then count back one month, 4 months, and 7 months. Don’t forget, births spike after a major event, such as a natural disaster, 9/11, or a major war. I hope this helps.

Topics: Uncategorized | 3 Comments »

Sara Palin “Hot Photos”

By admin | September 3, 2008

This week’s Science of Search column in TIME demonstrates how search term data can illuminate what really interests us in the presidential compaign (this particular column, as of today is the most read story on the TIME site).  Check out the column here.

Topics: Uncategorized | 6 Comments »

More Reviews (TIME and USAToday)

By admin | September 3, 2008

Check out the latest reviews of Click that were posted this week in TIME and on USAToday.

Topics: Uncategorized | No Comments »

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