BBVA, Spain’s second-largest bank by assets, is teaming up with Google to use its search engine results to provide advanced forecasts of hotel and tourism demand in the country, part of a plan to market real-time economic indicators to its clients.
The bank and internet group will announce on Monday a scheme called the “BBVA-Google tourism activity in Spain indicator”. The first pilot project has focused on measuring advance demand for hotel stays and tourism interest in Spain by using search engine data.
Private investors get to see that search data before anyone else does. If you have a retirement plan invested in stocks, then you are at an asymmetrical information disadvantage because Google is providing an in-depth look at that search data to competing investors who can trade on the information before it is public.
Is search traffic a big deal? Is there enough signal there to matter? Yes. And yes.
I read an investment report earlier today about a company where the hedge fund's rating & valuation was largely based on / justified by the SEO strategy of the underlying company & their current Google rankings...the report even had keyword ranking charts in it!
If Google has over 90% search marketshare in many EU countries & is willing to leverage proprietary search data to win contracts in other fields, how does anyone compete against that data bundling?
Further, think of all the damage hedge funds & huge banks have done to societies the globe over this past decade & now Google is directly helping the bad guys.
That is Google's approach to their proprietary information: if you invest in their ecosystem and use their analytics tools you can't get your own analytics data (as they have to protect "user privacy"), but they will gladly sell that same data off to someone else.
If there is no public outrage at this "test" then the data units will start getting more granular. Rather than measuring categories Google may sell data on a per-site or per-company basis. Looking at how Google has consistently disintermediated "partners" everywhere else, if Google is feeling bold they may suggest that selling the data to others also permits Google to trade on the data as well.
"One day we had a conversation where we figured we could just try and predict the stock market..." Eric Schmidt continues, "and then we decided it was illegal. So we stopped doing that."
Based on Mr. Schmidt's above comment, is it reasonable that Google now profits off leveraging their data for securities analysis? What made the above clearly illegal & what is going on now above board? What's the difference between them? Perhaps a "contractor" layer?
According to this post, Google was caught scraping Mocality, calling the listed businesses, soliciting that they move to Google "Get Your Business Online", disparaged the directory they were scraping in the client call, and then lied about having the permission of the directory they were scraping to try to con businesses into working with Google.
A few select quotes:
There are absolutely no costs, and this will be agreed on before it’s put on… No one will come and tell you like Mocality used to do, someone tells you it’s free and then they come to ask for money. You know that Google doesn’t fool around here.
Mocality used to charge people and many of the people who used to be in Mocality we have taken them and transferred them here. Didn’t we also find you on Mocality?
Ai…they used to…but some people didn’t used to pay. They [Mocality] used to go and ask people to pay them around Ksh. 20,000 and people refused. It was things like that.)
Google's business model *is* buying or building things that are free and then later pulling back features and/or sneaking costs in on them. Whether it be clubbing Android carriers with compatibility, saying search ads are evil then placing them everywhere, Google Maps API terms changes, terms changes on the Google AdWords API, Google hotel place listings with endless price ads, or keyword (not provided) in web analytics while trying to force you to register in Google Webmaster Tools to get any keyword data at all!
As if that wasn't bad enough, when the fake business asked Google if Mocality was ok with this, this was the exchange:
My question is does Mocality know that you’re getting their con…our contacts from their directory?
Yah. They know. They know that very well. They have agreed with Google when they were on that thing.
I have long stated that the difference between spam and quality content is who is spamming. With the recent widely criticized over-promotion of Google+ in the search results and this sort of scrape, lie & disintermediate the source Google's true character is shining through.
Facebook & Twitter are smart not to leave the barn door open for Google.
All information wants to be free and wrapped in Google's ads. Or so the saying goes. But until they can be trusted it won't be. They have done A LOT of brand damage to themselves in the past couple months.
Update: Google was mortified that they got caught doing this:
We were mortified to learn that a team of people working on a Google project improperly used Mocality’s data and misrepresented our relationship with Mocality to encourage customers to create new websites. We’ve already unreservedly apologised to Mocality. We’re still investigating exactly how this happened, and as soon as we have all the facts, we’ll be taking the appropriate action with the people involved.
That is what they say, typically at the bottom of the posts, in blog posts that equate Google Chrome to being the Internet & spread misinformation about how Chrome is good for small business.
some of those sites are paid posts and have live links in them to Google Chrome without using nofollow & talk about SEO in the same post as well!
some of those posts link to the example businesses Google was paying to have covered
and all the posts are effectively "buying YouTube video views" for this video youtube.com/watch?v=QFLP7HD1s7k
You can say they didn't require the links, that the links were incidental, that leaving nofollow off was an accident, etc. ... but does Google presume the same level of innocence when torching webmasters? They certainly did not to the bloggers who reviewed K-Mart & the Google reconsideration request form states:
“In general, sites that directly profit from traffic (e.g. search engine optimizers, affiliate programs, etc.) may need to provide more evidence of good faith before a site will be reconsidered.”
The Orwellian things about Google using the above strategy to market Chrome are:
Google has a clear pro-corporate big brand bias to their algorithms & layout (Vince & Panda updates + the part near the top of the SERPs for some searches that says "brands" as a filter type).
The more usage data Google collects the more stupid hoops it forces smaller businesses to jump through in order to compete, thereby further driving them under. (If small business owners didn't have enough time & resources for SEO, do they now also have time to get reviews, get local citations, deal with social stuff on Twitter + Facebook + Youtube + Google+ and a bit of SEO?)
Google polices how small businesses can even make income online. When K-Mart paid some small business bloggers to do sponsored posts Matt Cutts wrote a post (mattcutts.com/blog/sponsored-conversations/) about how he torched those small bloggers (while doing nothing to K-Mart) & equated that exercise to selling links that promote bogus brain cancer solutions. Yet Google Japan was already dinged for this sort of paid post activity & now Google is doing the same thing again.
The fact that Google is paying to spread that sort of misinformation about how their browser is helping small businesses is sort of like BP buying ads about doing tourism in the gulf. Only since Google destroying smaller businesses is something more abstract on virtual lands the PR propaganda campaign is much more effective, because (unlike oil washing ashore) people do not see what is not there. (The birds still die, but the black oil covered carcass isn't rotting on the beach).
Should you follow Google & buy ads on these sites? Are they christened & beyond reproach? I would sort of be afraid to buy exposure on the blogs where Google is buying coverage...if that latent public relations disaster eventually blows up in their face, they may assume others are as guilty as Google is & burn down the whole forest.
Google the dictator meet Google the marketer. You guys are going to get on well together!
Update: Danny highlighted how Google's Chrome ad buy created a lot of the low-quality filler pablum content that the Panda update was alleged to discourage.
At the same time, independent webmasters face greater uncertainty than ever (legal, personal property rights, and from alleged "quality" algorithms like Panda & editorial crackdowns from Google engineers).
If you are not operating at scale, you are an inefficiency which must be expunged from the marketplace.
Such a view may have been seen as cynical, but it is something that more people are realizing as true. Read this great article from Tom Foremski on ZDNet.
Google's percent of downstream traffic to YouTube has more than doubled since Panda.
You know how John Stewart or George Carlin have to present reality as a joke to express it? Well watch the above video & then read this article:
“Every single leading company is waiting for user-generated content or is licensing content” in order to reach advertisers, Rosenblatt said. “YouTube was tired of waiting. They told us that they needed a home and garden channel, a pets channel and a health/Livestrong channel. They are paying us up front, plus a rev share. This is the beginning of them funding professional content creators.”
With some 1.4 million employees on its U.S. payroll, Walmart's world is about as large as the state of Maine. That's massive by any standard, but when you consider how social media amplifies that number, it's not simply a huge group but an influential one. No small wonder, then, that the earth's largest employer is taking greater measures to motivate and mobilize its people -- and opening up more opportunities for consumer brands to also reach them along the way.
These brands can not only leverage internal resources to further build off the boost Google offers them, but they can then take that attention and sell it back off to the highest bidder:
It's not clear how much ad revenue Walmart World has made or whether MyWalmart.com will become a profit center. But the former already takes in millions of dollars annually in ads from vendors seeking an audience with Walmart employees, according to people familiar with the matter.
If Google consolidates markets too aggressively then ultimately they create competition for themselves through vertical ad networks. In some cases (say travel) Google can buy out the market plumbing & then reassert control:
Wertheimer drew some criticism when he explained that “our airline partners were very clear” that they wouldn’t participate in Google Flight Search if online travel agency booking links were included in the core flight-search results.
But Google doesn't have that same influence over retail & each time they put the big brands front and center the more they reinforce that 3rd party dominance.
In addition to leveraging their workforce, it is also quite easy for these brands to use customer incentives to dominate social media.
The above is another reason why Google is pushing so hard to control the second click. If they can taste the traffic again they add efficiency to their own model while introducing another layer of friction to other retailers.
When users finally manage to leave the Google click circus, Google tries to pull them back into Google with the Google Related toolbar
In the above quoted AdAge article there is some skepticism around how much a company like Walmart can get out of underpaid wage slaves:
"It's really hard when you're a person making poverty-level wages, just had your health-care premiums raised 60%, and you can only get part-time hours, to be a good ambassador for the brand, no matter how much you love it," said Jennifer Stapleton, spokeswoman for Making Change at Walmart.
However I think that skepticism is misplaced, as the less a person has the more thankful they tend to be for the little bits they do have. Most people who have nothing do not realize how systems are engineered to screw them over.
It is only when you have free time to think & are not clouded by arbitrary short-term stress that you can ponder the bigger & more uncomfortable questions in life. As long as you don't consider those uncomfortable questions it is far easier to push anything, because you don't know any better.
"The entire web has become full of garbage. The web has become almost a digital Detroit." - Roger McNamee.
If Walmart's strategy works then this ultimately will be why Google's brand-only approach to search will fall flat on its face. If this is successful I would then expect Google to put out some public relations drivel about celebrating the diversity of the web & move away from brand in the next 2 or 3 years.
In the meantime, I expect Google to keep increasing search complexity such that it's prohibitively expensive to make & market a small independent commercial website. That will force many smaller companies to live inside the Google ecosystem, with Google ranking the Google-hosted pages/products/locations for those companies, so that they can serve ads against them and get a bigger slice of the revenues.
Google's ad network is far more profitable than even the lowest waged employee, as it doesn't need to be fed & is designed to be an agnostic & amoral yield optimization tool. And it is effective enough that the biggest retailers are now becoming ad networks.
Average products for average people - with ads everywhere.
Google collects a lot of information on individuals & can have some level of confidence if the person is a real person or not based on things like their history of email usage, if they have a credit card on file, how they interact with other high confidence real accounts, how many people are friends with them on Google+, usage of an Android cell phone, their search history, etc.
Google doesn't need all those signals on any individual, just some blend of them.
From there they can create a lot of usage-based brand signals.
Query Volume + Click Distribution
For any keyword Google can see the search volume & the click distribution on the search results.
If a lot of people click on the top result & very few people click on the second or third result there is a strong chance the keyword is a brand. If the click distribution is spread more evenly across the search results then it is less likely to be a brand keyword.
The above was a hypothetical example, but the following image shows how lower volume branded navigational keywords can drive far more traffic than broader industry keywords. We get twice as much traffic for seobook & seo book as we do for seo.
When people search for a generic keyword they may (immediately or later) modify their search query to search for related keywords. In the past Microsoft offered a search funnels tool that would show common searches before & after a keyword. If someone searched for credit cards they might soon search for visa or mastercard.
Of course getting the user to click is just the first step. From there you must satisfy them. ;)
If you visit a page quickly & then jump right back to the search results Google asks users for an explicit vote against that site.
And if you visit a page for a significant period of time Google asks users for an explicit vote for that site.
That Google is measuring the time until return the search results to determine which explicit vote to request also implies that they can use the same aggregate data to create an implicit signal.
Where this measurement can get a bit fuzzy is that Panda can create a self-reinforcing impact (good or bad).
Self-Reinforcing Positive Impacts
Let's say your site got a ranking boost by Panda. It will rank higher across broader industry keywords, to where people may enter your site at the category level (say shoes or Nike shoes) and then surf around your site quite a bit. This equates to a longer time on site & a better user experience.
2 more factors on this front are branded navigation & familiarity.
On some search results Google shows branded search options.
If clicking those brand & store links feeds into the Vince relevancy signal, then any brand featured there has a huge wind at their back, building further brand signals. Eventually such suggestions can work their way into Google Instant keyword suggestions as well. Even if people do not click on those particular options, the various highlights in the search results act as advertisements for the brands, which drive incremental demand and search volume for those brands.
Amazon.com is responsible for roughly 1/3 of ecommerce spend in the United States (outside of travel), so many people might go and research product options generally & then conclude those search sessions by seeing if they can buy it off Amazon.com (due to getting free shipping & the high level of user trust Amazon has). As this becomes part of search relevancy algorithms this is the online equivalent of going to your local Borders store to find something to buy & then buying it on Amazon. In the short run you save a few Dollars, but in the long run stores like Borders go out of business.
Self-Reinforcing Negative Impacts
There are 2 bad ways a business can be impacted by Panda. One is missing out on the above promotional options that a large competitor may enjoy, which over time build more brand signals for them & leave your site stranded in no man's land until it is finally clipped by Panda for lacking "quality."
A second issue is a self-reinforcing issue with Panda. On WMW a user nicknamed Walkman described it as the "size 13 shoe problem." After you have been hit by Panda you are not likely to rank for broader category level searches. However you might still rank for some really obscure longtail keyword that is uneconomic to address directly (and thus only have a glancing mention of the user's intent). Your page might say we do not carry size 13 or size 13 out of stock and your Panda-hit site ranks for "Nike Carmelo Anthony size 13." Thus the user bounces, creating a self-reinforcing negative user experience signal.
The above examples of +1 votes and blocks can be used (along with the time on site & repeat visits) to gauge user satisfaction, however if they can't get enough engagement then it will be very easy for big brands to buy that signal for pennies on the Dollar, as some social signals are easily bought by brands.
Not only does Amazon directly integrate promoting your wishlist on social media ...
... but they also have done interesting promotions like a "Tweet & get" ...
Imagine if/when a new local Wal-Mart store launches offering a free $10 coupon to everyone who Tweets their savings at the checkout counter!
One big issue I have with the +1 votes & blocks is that they apply across the board. I may dislike some craptastic videos hosted on YouTube, but there is also a lot of great content there. I love eBay for vintage video games, but it does not mean I love them for books.
Likewise some of the friend of friend stuff can be a bit off.
At some point Google should make +1 votes & blocks more granular.
Near the end of this article I will also further discuss some issues with ad votes.
Does Google measure repeat visitors? Yes.
They use that user interaction to ask for an explicit vote...
...and they can use it as an implicit vote as well.
They not only track how many times you visit a page or site, but also when you last visited it.
Once it is obvious Google is counting certain types of user metrics (just like they count links) there will be a race to the bottom to provide those said signals. That race to the bottom will lead to such signals being sold by accounts that either have sketchy trust metrics associated with them (if done through automation) and/or in markets with lower living costs.
And they can also track where the votes come from.
If your domain name matches your keyword that may be a brand signal. However, Google may also look at some other signals (like user engagement, repeat visits, relative CTR, etc.) as confirmation signals on this front.
Sometimes when a spammer builds links they trap themselves by using the same anchor text too much. Whereas when a branded website pulls in organic citations the anchor text tends to be mixed up, like...
Diversity in any sense (anchor text, linking sources, pages being linked to, links built across time, etc.) is generally considered a good thing.
Other types of links might also be seen as potential brand signals. For instance, frequent exposure in trusted news sites, other trusted seed sites, or other known brand sites could pass additional karma. Some link spikes that are also associated with strong direct traffic spikes, strong referral traffic from the links, and strong brand searches might also boost the weight given to links.
In local search Google has long used the sites they displaced in the organic results as citations (even if they were in some cases unlinked).
In addition to offering branded filters in their internal navigation, many merchants submitting their products to Google product search may also be giving Google signals about which brands matter.
Google will be able to lean into Zagat ratings for business & other data sources (Google Wallet, Google Offers, etc.) will provide additional signals to Google.
Any type of non-search distribution you have (RSS subscribers, email newsletters, mobile applications, physical stores, membership loyalty programs, etc.) makes it easier to influence search engines.
If advertising with Google had a negative impact on search relevancy you can be sure that the relevancy algorithms would change. Whereas if there is a convenient positive spill over then Google won't complain. In fact, they will even go out of their way to advertise that spill over. Any sort of advertising you do increases brand awareness. And that leads to additional incremental brand searches (and thus brand signal)
More exposure also leads to more user experiences, which in turn leads to more opportunities for people to leave signals behind (be it links, social mentions, additional brand searches, and/or repeat visits). Here is State Farm buying *irrelevant* brand signal for pennies on the Dollar.
And of course there are all sorts of corporate advocacy ads as well.
Even if those votes don't influence rank directly, they still influence user perception. And what is so bad about that is that users are only voting of the content of the ad. This basically is the equivalent of cloaking.
If the landing page doesn't match the ad (free iPad anyone???) then people are going to see their friends vouching for scams & get duped by Google.
That is worse that a press release being advertised as though it was news
You can also be certain that some clever spammers are integrating +1 buttons in display ads on other ad networks in ways that may automatically collect user clicks & so on, or have users pay for viewing their next porn video by clicking a +1 button (much like some old school email spammers used porn viewers as manual captcha breakers).
Google does offer the ability to vote against an ad as well, but if an ad looks great upfront & its the landing page that scams you then how exactly do you vote against it if you don't see the site until after you click the ad?
If you read any of Google's older guidelines that leaked over the years you would see a consistent disdain toward affiliate sites. This was also reflected in official advice at search engine conferences & whatnot.
A friend of mine went to Google's campus & Google offered to "optimize" their AdWords account. As soon as the word affiliate came up it was like spoiled meat. Replacing the word "affiliate" with some other idiotic made up phrase (I think it was "regional online distributor") suddenly made everything O.K. again. Other friends had similar stories.
Note that the difference between "affiliate" and "regional online distributor" is for all intents and purposes linguistic crap, however it can be the difference between life and death for an online business.
To be fair, the ready availability of feeds to quickly generate sites means that most affiliate sites will be garbage. At some point Google gets sick of fighting the same battles over and over again. Then again, most websites are garbage & only the top x% of anything is going to be great.
It is worth noting that Google doesn't consider itself "just an unnecessary step in the sales funnel" when they insert themselves as an affiliate.
Should information empires be allowed to discriminate based on nothing more than the business model of competitors?
Spam vs Not Spam
The most recently leaked Google rater document stated
Spammers create spam pages to make money. Sometimes, they make money directly, by placing moneymaking links on the spam page. Here are two types of moneymaking links:
Pay-Per-Click (PPC) ads: Spammers get paid each time ads are clicked on their webpages. Another term for PPC ads is “sponsored links”.
Thin Affiliates: Spammers make money when a transaction is completed after the user has clicked through to the merchant’s site from their webpages
PPC ads appear on many, many webpages. Some pages with PPC ads are spam, but many pages with PPC ads are not. Pages should not be assigned a Spam flag if they are created to provide information or help to users. Pages are spam if they exist only to make money and not to help users.
Sometimes, spam pages do not have moneymaking links. These spam pages are created to change search engine rankings or even to do harm to users’ computers with sneaky downloads.
So in essence, the difference between spam & not spam is if the page is helpful to users.
The rating document takes 130 pages to clearly articulate the difference between what is spam and what is not spam.
But the core ethos in categorization is if it is original & helpful it is not spam unless it is doing something deceptive.
A Minor Exception*
Google's rater guides also arbitrarily sneaked in the "what the hell, if it is affiliate, it is spam" card:
Note: Major cosmopolitan cities are preferred targets for spammers, especially hotel affiliates. Such results should be flagged as Spam, even if they are related to the query and helpful to users. For example, a hotel affiliate page with a list of Chicago hotels may be assigned a rating Relevant, but also receive a Spam flag.
Google is directly going out of its way to attack competing business models.
Even if the site is quality - any way you slice it - they still tell raters to label it as spam if it is a hotel affiliate.
Once again it is worth pointing out that the label "affiliate" is just an arbitrary label. It could just as well be a "commissioned salesperson."
An Example Market: Books
In our forums one of our members quoted a brilliant book by Karl Polanyi from 1944 which was full of gems like "A so-called self-regulating market economy may evolve into Mafia capitalism — and a Mafia political system"
I searched for that quote & guess what ranked #1?
Google Books of course.
Google's owned & operated affiliate offering in the niche.
The stolen version hosted on Google.com ranks #1...everything else is either spam, unneeded duplication in the marketplace, and/or conjecture that can float up and down as they tweak the algorithms.
To say that the book publishing industry is undergoing pains would be an understatement. But maybe in some weird way Google promoting Google helps the book industry by giving it more avenues to be seen? Maybe they are trying to help out book authors?
The structure of the book industry prevents the book author from getting anything but a small slice of the book's revenues (unless the author is well known and/or they self publish). Markets being what they are, most authors live in obscurity on the long tail. To help supplement their low cut of the revenue pie, some book authors use affiliate links to link to Amazon.com as a purchasing option on their official book websites.
Recently in our forums a member created a thread about a client site being blocked from AdWords because there was an affiliate link on the page for their own book!
Google is The Biggest Online Affiliate
So the author is not allowed to advertise his own work to give you multiple buying options & highlight options which offer her additional compensation, however...
Google is free to steal the copyright work & promote their looted version first
The word affiliate is arbitrarily tarnished in the same way that SEO is.
Use another label & if you do the exact same thing it is clean. Craigslist or eBay are not affiliates as they are marketplaces. Wal-Mart & Amazon.com might do drop shipping & have some affiliate promotions on their sites, but they are retailers.
These arbitrary label differences make a big difference to the stability of an online business.
Machine Learning vs a Small Business Killing Machine
Google can claim that they use artificial intelligence and machine learning and are unbiased, but their ranking systems need training sets. And if upon this alleged independent rating affiliates come up as "spam" then how can an affiliate build a sustainable business model?
I know what you are thinking: "Well, Aaron, they can stop being affiliates and move up the value chain."
The problem with that is that as an affiliate I can compare a lot of products in a condensed space, but if I accept payments for products then I likely need to have a page for each product. The issue there is that if you do not have a strong brand and you have lots of pages on your site there is a great chance that the Panda algorithm will torch your website.
The new items on the website will mostly get to consumers through third-party sellers, which means B&N won’t have to carry the expense of inventory. The bookseller will just take a sales commission of 8% to 15% on each item.
What's worse, when brands come under review for spamming, Google says that they already ranked #1 so there is no reason to penalize them. Which is precisely why you can now buy rugs on Barnes & Noble. And it is precisely why you can find dating offers, education offers, jobs, and automotive sections on Excite.com. There is no SEO risk in brand extension for large brands that can do no wrong.
Google puts weight on domain names then suggests that domains can be a spam tool. So in a sense, if you invest in whatever Google trusts and are small you are a spammer. Whereas if you invest in whatever Google trusts and are large you deserve the benefit of the doubt & further promotion.
Google put the +1 button in display ads & claims that if you click on it you are recommending the site in the search results (in spite of having only seen an ad & not actually having seen the landing page yet! how hard is it to advertise "free money" and then offer up a landing page which says "oh, but there's a catch"?)
So if you have brand & money you can just flat out buy the "relevancy" signals. Yet if you try to create similar signals without paying Google & without owning a billion Dollar brand you are shunned & labeled as a spammer.
This subjective circular nonsense is getting a bit out of hand.
In summary, we are not SEOs and we are not affiliates.
We are a brand & we will buy retargeting AdWords ads + up our AdWords budget appropriately.
If we rebrand to remove "SEO" from the domain name can we please be added to Google's whitelist? ;)