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GoogleTaxBlog

Google Tax: The Implications for Advertisers

Posted on 9th May, 2016 by

The recently announced 2016/17 Federal Budget has again shone the spotlight on multi-national tax avoidance, otherwise known as “Google Tax”.

The government plans to put in place a number of measures that will help it secure almost $4 billion dollars in “lost tax” from Australia’s top multi-national companies including Google and Apple by July 2020.

As a start, the Australian Tax Office (ATO) is getting $679 million over four years to fund a 1,300 person taskforce to ensure multinationals, private companies and wealthy individuals pay the right amount of tax.

Beginning July 2017, the tax system will also get a new Diverted Profits Tax law. The regulation will impose a penalty rate of tax at 40% on large multinationals that are found to have attempted to shift Australian profits offshore to avoid paying tax. This law is a follow on from the Multinational Anti-Avoidance Law which was passed in December last year.

A similar law was introduced in the UK recently and forced Google to agree to pay the UK government £130 million in back taxes.

In Australia, the issue with Google arises by it booking its advertising revenue from Australia in Singapore where the tax rate is lower, therefore not counting income it earns through advertising locally.

Google has already made progress to rectify this issue. Google’s Australian business restructured at the beginning of January 2016 so that it now recognises revenue from the marketing and selling of certain services and products to Australian based customers.

While for the everyday Australian an extra $4 billion in the coffers is an attractive prospect, what implication will this have for Australian advertisers?

Advertisers and agencies will be keen to see whether the new tax will have an effect on the advertising rates they pay to Google. For example, would Google pass on this cost to advertisers by increasing CPC rates on AdWords campaigns? If the cost is passed on, this is likely to have quite an impact on the marketing budgets of businesses across Australia.

Google says that in 2015 it’s workforce grew to around 1200 people in Australia and the company invested more than $400 million into its Australian operations. If this new tax encouraged Google to shutdown operations and move offshore, it could have dire consequences for Australian advertisers and agencies alike.

So we wait with baited breath for the July 2nd election result to see if these laws will become a reality.

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Bonfire in The News: The Impact of Google’s New SERP Layout

Posted on 25th Feb, 2016 by

Advertising on Google is competitive at the best of times.

Google has just made the game even harder by announcing a major change to the way it will display ads in its search results page.

Google will no longer display ads on the right hand side of the SERPs. Instead, these ads will only be displayed at the top and bottom of the page.

Our CEO, Clay Cook, spoke with Campaign Brief on this change and the impact it will have on advertisers and SEOs alike.

 

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“Slow and Steady” Google Ranking Update

Posted on 24th Jul, 2015 by

After forcing webmasters to wait 10 months, Google has confirmed that a new ranking algorithm update has been released this week.

Panda 4.2 brings good news for anyone who was penalised by the previous update. If you took the right action to fix your mistakes, then you should notice a positive change in your organic ranking.

However, it could be a while before you notice this.

In the past, when Google has released an algorithm update, its impact has been immediate and widespread. However, this release is different. It’s being rolled out so slowly that webmasters are unlikely to notice any sudden impact to their website’s rankings.

Google’s lips are sealed as to why they have taken the “go slowly” method, but they can confirm that it will likely impact around 2%–3% of English language queries worldwide.

Our CEO, Clay Cook, makes a point that if you’ve forgotten to make changes to your website, then it’s a little too late. “Despite this update being a “slower” release than normal, there is no point rushing any sudden changes to your website. They will not be picked up by Panda 4.2.”

Being proactive instead of reactive is always a good approach. “It’s still early days, but we’ve noticed very little impact to our clients website rankings from this update and we don’t really expect to. This is because our approach to SEO is to be proactive. If webmasters continually update their content as part of their overall SEO strategy, then their website is less likely to feel the wrath of Google.”

If you do find you’re website has been negatively impacted by the update this time round, then use it as a timely reminder to implement the required changes to increase your content quality. You just never know when Panda 4.3 may arrive…

 

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2015-predictions-blog

2015 Digital Marketing Trends and Predictions

Posted on 12th Dec, 2014 by

As 2014 draws to a close, the predictions and trends for Digital Marketing in 2015 have already begun.

So we thought we would jump on the bandwagon with our very own (along with a few from well-known experts).

Here goes:

1. Mobile-Optimised Content Will Be a Must-Have, Not a Should-Have
Our Head of Digital Services, George Gavalas, predicts that mobile optimisation will play a big role in Digital Marketing in 2015.

“According to Forbes, 87% of connected devices sales by 2017 will be tablets and smartphones. While a responsive design is paramount, Google has hinted that mobile usability is now ‘relevant for optimal search results.’ So, 2015 will bring about website content specifically for mobile users.”

2. Digital Analytics Will Get More Sophisticated
Google’s Analytics Advocate, Adam Singer, anticipates that marketers will demand more from analytics in 2015.

“We know from research, talking to users and being an active part of the industry that marketers are increasing emphasis on measurement. Our team even launched a MOOC (Massive Open Online Course) to provide a free and robust resource to educate marketers and help them succeed. An ever-expanding mix of devices and channels is creating even greater pressures for digital teams to quantify their efforts, but the technology is here and the market demand for talented analysts & data-savvy marketers has been in place long enough that 2015 is the year digital measurement finally comes of age. Smart brands have already formalized their efforts across organizations and efforts. If you’re not there it’s time to catch up.”

3. Marketers Will Demand More From Remarketing
Ad Remarketing (or Retargeting) was the new kid on the block in 2014. However, due to its proven success, our Digital Services Manager (and PPC King), Sam Zhao, predicts that marketers will demand more from Remarketing in 2015.

“I expect the technology that ad platforms use will become more innovative especially in regards to advanced targeting criteria. We’re already seeing hints of this from Facebook with Atlas and Google AdWords, so I expect we will see other ad platforms like AdRoll and Chango follow suit pretty quickly”

4. Shopping Comes to Social Media
Twitter and Facebook are already testing it, but Hootsuite CEO Ryan Holmes, expects e-commerce and social media integration to deepen in 2015.

“This approach eliminates one key dilemma all merchants face – how to get customers in the door (or to your website). On Facebook and Twitter, you’ve already got a receptive audience, happily chatting with friends, browsing the latest trends, sharing photos and videos, etc. Once their payment details are on file, purchases are a tap or two away. There are major benefits to advertisers. Connecting individual tweets and Facebook posts with actual purchases has thus far proved a huge analytics challenge. But with the advent of buy buttons, concrete revenue figures can be attached to specific social media messages in a way that hasn’t been possible until now.”

5. Don’t Count Out Google+ Just Yet
There are plenty of Digital Marketers who criticise Google+ and some are even predicting it will be gone all together in 2015. But, our Digital Services Manager (and resident SEO expert), Matthew Elshaw, suggests otherwise.

“Even though Google has closed their Google+ Authorship program, Google+ business pages are still an important part of the ranking algorithm. In 2015, I expect Google to further reward businesses that maintain an active profile with regular posts, complete business information and positive reviews.”

6. Will Marketing Strategies (Finally) Become Integrated?
Good question…. The experts have mixed predictions for this one.

Altimeter Group’s Brian Solis, says no:

“I’d love to say that by 2015 we will truly see digital strategies that are integrated across social, mobile, advertising, marketing, comms, et al. But, we won’t. What we will see though is a more conscious effort to bring disparate groups to the table to learn how to collaborate across screens, channels, and moments of truth to deliver ONE experience to customers wherever they are in the lifecycle.”

However, Lee Odden from TopRank disagrees:

“Content creation, search optimization and social media will be less siloed as specific departments and treated more like skills that exist across the organization. Optimization will move beyond individual tactics and focus more on overall customer experience across channels. Marketing is everybody’s job and more companies will leverage internal resources through social business and collaboration platforms as well as participation marketing with their community to integrate scaled content creation and social media engagement.”

 

And there you have it…. Just a handful of the big predictions for Digital Marketing in 2015. Now it’s over to you… What do you think the most significant changes and important trends will be in 2015?

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Remarketing: The New Tool In The Digital Marketing Arsenal

Posted on 16th Jul, 2014 by

If only there was a way business owners could re-engage visitors who’ve left their website…. 

We’ll let you in on a little secret… there now is!

Remarketing is a clever way to connect with your website visitors who haven’t made an immediate purchase or enquiry. It allows you to position targeted ads in front of these visitors – as they browse elsewhere around the Internet including while they’re watching a YouTube video or shopping on eBay.

Recent reports show that on average, people spend 96% of time online on websites versus 4% of their time on search engines. So while, SEO and Google AdWords are still incredibly important to an overall marketing plan, Remarketing is a complimentary strategy that gives your brand a lot more reach.

Here’s a visual showing how Remarketing works:

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Bonfire now offers Remarketing campaigns.  For more information on how our Remarketing specialists can help, click here.

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stateofecommerceblog

The State of Australian eCommerce

Posted on 29th Oct, 2013 by

Any business that sells goods or services online will know all to well that eCommerce is well and truly thriving in Australia at the moment.

We certainly live in the lucky country and our online retail spending figures are proof of that. Here are just some of the recent statistics to be released (see infographic below):

  • 71% of Australian consumers have made a purchase online
  • Online sales revenue in Australia is expected to reach more than $37bn during 2013
  • 53% of users buy from Australian E-Commerce Sites instead of overseas sites
  • 73% of online users in the age group of 35-44 have shopped online
  • $2,108 is the average spend of each online customer in Australia
  • Credit card and Paypal remain the most popular payment methods

These statistics won’t surprise many of the e-retail front-runners who know that staying ahead of the game in online retail is a never-ending race of investment in new technology and innovative marketing strategies.

Australian-ecommerce-stats

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