"All things are subject to interpretation. Whichever interpretation prevails at a given time is a function of power and not truth." - Friedrich Nietzsche
Everyone Except Me Should be Open
Being labeled as open or transparent is a great public relations strategy. Executed effectively it gets ditto heads to feel like they are part of a movement and spread your propaganda.
However actually being transparent is often a poor business strategy.
Claiming to run an open auction, while running obfuscated quality metrics that price gouge advertisers.
At the same time Google is trying to push social sites to offer transparent data, they decided to block some Google search referral data (unless you are paying for the clicks, then you get that data).
When planning some of the features behind Google+ one of their employees wrote a book about the social circles concept with Google's blessings. Then, after he wrote the book, Google revoked permission to publish it!
Nuking affiliate links of some websites & then investing in Viglink, a network that automatically turns links into affiliate links.
Burning some networks of websites for being doorway pages & then investing in the Whaleshark Media roll up & launching Google Places.
Nuking some UK financial comparison sites for link buying & then buying BeatThatQuote.
Suggesting 60 or 90 days of penalty is a reasonable penalty for sketchy links & allowing BeatThatQuote to rank 2 weeks after penalizing it without cleaning up any of the paid links.
Android is open but internal Google emails revealed that carriers were getting wise to Google using compatibility as a club.
Not sharing revenue share stats with AdSense partners for a half-decade.
When websites are nuked they are frequently given no explanation. Worse yet, their content often re-appears in the search results on some other domain that stole it, in many cases while being wrapped in AdSense ads.
Arbitrarily making it hard to export AdWords campaigns to other services (& making it against the TOS to do same via the API).
The Panda update was needed to rid the web of garbage content. And yet Google is pre-paying Demand Media to post videos on YouTube. Since the Panda update downstream Google traffic to YouTube has more than doubled & YouTube is serving over a trillion streams per year!
Calls for "transparency" in SEO may sound great on their face, but once you peal back the covers the absurdity is laughable. If Google didn't discriminate against certain types of players & if Google didn't compete in the very markets that it judges then perhaps transparency would be a good idea.
However Google is perhaps the single biggest direct competitor in many markets, so to be fully transparent with them when they are the opposite with you is a naive business strategy:
I also disagree that outing each other would make the industry less like a mafia, because SEOs aren't the mafia. SEO is a symbiotic marketing channel reliant on Google, until the next big search engine/method comes along. In a mafioso analogy, Google would be the mafia - as they control the market. Removing all webspam wouldn't necessarily create better search results or a fairer market, as Google still decides who wins and who loses. The biggest winner being Google itself, the next level being their friends.
Secrecy is also the cornerstone of all marketing channels. Social Media for instance works in a similar way to SEO, except they have secret voting methods rather than secret linking methods. You don't see major social media companies outing a rival's voting methods, as it would shine a torch on their own methods. Even outside of marketing, McDonalds probably worked out KFC's magic blend of herbs and spices decades ago, but it's not in their best interest to tell everybody.
Outing webspam helps an SEO blog to keep their UVs up and their VCs happy. It helps a failing newspaper to appear modern and edgy, whilst allowing the contributor to launch a protection racket off the back of another company's misery.
Do You Want SEOs to Seem More Professional?
How often do you see tier-1 public relations firms marketing themselves by smearing other PR firms?
The question is less whether black hat and webspam are a good thing or not, but if Google is the unbiased and benevolent instance who shall make the rules. Google is a business and persuits its very own interestes, since it is aware of its market power with a lot of arrogance, aggresivity and obviously double standards. That was also Aaron's point, but seomoz has been missing the point completly in the last time.
I expect an SEO portal/community to focus on how stuff actually works/can work, not to propagate how the monopolist does it want to work. It is their risk of doing business if they decide for an algorithm, not ours. It is our risk however, to decide whether to stick to the rules or not. And it's not only about ethics but has several practical implications...
Full Disclosure Required, Except From Us
On paid links Google claims to require machine AND human readable disclosure. Then on their own site they use an ad color background that literally fades to white on many monitors. Maybe it is legitimate that they are only able to fool some of the users some of the time. But some of their ad initiatives have 0 disclosure at all. None.
You wouldn't know by looking at it, but according to the WSJ it is: "Google lists booking links to the airlines as advertisements, but the company declined to comment on how much money it makes from the arrangement."
There is no disclosure that you are in a paid ad funnel until the very last click. And those who fail to pay are either unlisted, listed last, or have a broken booking process where their brand is arbitraged in an attempt to flip the click to somewhere else. According to Leocha, “Google and the airlines have a sweetheart deal with each other, and the consumers are getting screwed.”
In the hotel market Google is also testing comparison ads & price ads.
Notice how little they care about relevancy so long as they keep the click on Google or are paid for the referral. They rank the car rental company Avis as a top Las Vegas hotel! And even the ad links that are sold off of that do not line up. Priceline pushes the Plazzo Luxury Suites & Booking.com pushes the Venitian.
Retarding Investment in the Search Ecosystem
What do you suppose the above behavior does to cash flow & multiples of websites in that vertical? Of course it contracts them & retards investment. Who wants to start a new hotel website at this point? What other verticals have investment held back by the fear of Google's eventual entry?
If you only had to manage competing against other market competitors & staying inside Google's editorial guidelines then investment isn't that difficult, but if you have to stay within Google's guidelines in the short term yet try to build a business that is sustainable even after Google enters & destroys the market it is far more difficult.
Skimming the Cream
At any time Google can enter any market and skim off the cream: "An independent study from Leads360 showed consumers using Google’s comparison ads converted better than any other lead provider."
Other affiliate networks which do not own the search channel have to fight through quality issues if they try to build similar scale.
A Self-serving Bias You Can Count On
When Google enters a market it might buy out a competitor, buy out a supplier, bundle, use predatory pricing, grant themselves superior search placement, adjust the relevancy algorithms and/or editorial guidelines, violate IP, scrape 3rd party content, work with sketchy advertisers & publishers to undermine competing business models, or any combination of the above.
They are rarely transparent with their interests when they enter a market. Almost everything is labeled as "a beta" and "just a test." They promise to "act appropriately" & you may not be aware of the steamroller until you are under it.
I recently read a blog post about how anyone could do the above & the opportunity is open to everyone. But the truth is, I can't state that something will become a relevancy signal that manipulates the search results in order to get buy in. Or, if I did something which actually had the same net effect, Google would likely chop my legs off for promoting a link scheme.
A Google spokesman said "applications that are installed without clear disclosure, that are hard to remove and that modify users' experiences in unexpected ways are bad for users and the Web as a whole."
The business model of "violate & then buy protection" has helped lead to a protection-racket styled marketplace in patents that makes the risk of innovation for smaller players so expensive that it drives them under.
Where Google has gained a dominant position in a marketplace they can begin misdirecting for profit. Let's say you link to your own location on Google Maps to drive traffic to Google & help your users locate your office. Well in some cases they then reciprocate by confusing users by putting an ad in your location bubble.
Once again, you are forced to buy your own brand unless you teach your customers (and prospective customers) to avoid Google products.
Sure I May Have Failed, But at Least That Failure Was Transparent...
If you are fully transparent against an arbitrary set of guidelines when the company that judges you also competes against you & brushes up against the limits of the DOJ & FTC then you might lose for no reason other than being transparent. And not only are you competing directly against Google, but the algorithms are biased toward certain players.
Today the Internet is an information highway where anybody — no matter how large or small, how traditional or unconventional — has equal access. But the phone and cable monopolies, who control almost all Internet access, want the power to choose who gets access to high-speed lanes and whose content gets seen first and fastest. They want to build a two-tiered system and block the on-ramps for those who can’t pay.
But when Google launched their Panda algorithm they did the same thing.
You might get smoked by a Panda update or have your accounts arbitrarily frozen while operating at a 7 out of 10 level, and then you see Ask is Google's biggest advertiser, their arbitrage gets a pass, & that feed even monetizes misspelled searches for Google's brand. ;)
For many businesses the unknown Panda risk is every bit as damaging as the great firewall of China. Each additional unknown kills x% of small new online businesses. If unemployment is high, companies are not hiring & the bar for self-employment is too high then the web stagnates.
If the old established corporate competition needs to be as good as you to compete then there is little risk to being transparent if the competition is doing nothing beyond following you around. But if the playing field is tilted and the competition only needs to be 5% as good as you are to beat you (and can easily come from behind to copy any success you have) then full on transparency brings much more risk than potential profits.
You Are the Ad
We are moving into a media world where the content becomes ads & even how people interact with the ads and content becomes a part of the ad.
Every time you view a page and click an ad (or even don't click an ad) you are feeding highly personal data back to Google. And they will use it as they wish. Here they are saying thousands of people like eBay, which is of course plenty reasonable, except for the fact they claim the people voted for that specific page rather than the site as a whole.
What's worse is that sometimes they will put your picture next to a listing and claim that YOU PERSONALLY voted for a specific page & use that to market that item to your friends and contacts. The problem with this is that:
even after you remove the vote for a site they still keep showing it
you may vote for site A & they will show your image as voting for site B
when they show your picture they claim you voted specifically for the page being advertised (even if that page is promoting a scam or something else you wouldn't endorse)
Once again, I will highlight that they use the votes against the wrong sites & pages and that they keep showing the votes even weeks after you remove them.
Where is the transparency in that deceptive crap?
Others Are Just as Bad, But Are Not Monopolies
But Aaron, you are just being hard on Google, why don't you ever mention Ask or Yahoo! or Bing?
Yahoo! offers a useless "buying guide" for fish tanks that is nothing more than a paid pointer to Overstock.com.
If you click on their coupons tab on that fish tanks search Yahoo! shows you coupons for tank tops, which is pretty idiotic.
Why is this Yahoo! Shopping & Yahoo! Deals product so ugly? They outsourced it years ago. So it is a non-product & thus the integration can't be anything but crappy.
Why do Yahoo! & Bing typically get a pass? They own a fairly low search marketshare. Missing traffic from either or both of those is certainly significant enough to be felt, however even when they are combined it is still less than half of what Google controls in most markets. Market leaders are expected to operate in less conflicted & less self-serving ways than also ran players in their market do. If Microsoft would have had 10% or 15% marketshare for their operating system then it is unlikely their browser bundling would have come under such scrutiny.
Transparency in The Real World
In the past I highlighted how every form of media is manipulated in Why Outing is Bad, but I thought it would be fun to run through some other markets and highlight how transparency often exists only as an illusion (to lure in punters so they can be rooked).
TrueCar aimed to make that market more transparent by giving consumers pricing data online to remove some of the asymmetrical advantage dealers have & makes the sales process smoother for consumers. How does the automotive market respond? Honda issued threats to their dealers & now TrueCar has a hate video ranking for their brand.
This nontransparency is not something new, but rather the way it has always been.
It exists at every level of society. Countriesspy on one another & companies may chose to show different views of the world to different markets.
News International’s leading profit centre, the News of the World, was dependent on a very ugly culture of lawbreaking, hacking and impunity. This freewheeling, ask-no-questions attitude spread to other parts of the organisation, such as the Times and the Sunday Times, both of which used have used illegal or unethical techniques. Even more troubling, when senior News International management were confronted with evidence of wrongdoing, the company made false statements and took actions which prevented key evidence from reaching the public domain.
Both cases involve News America Marketing, an obscure but lucrative division of the News Corporation that is a big player in the business of retail marketing, including newspaper coupon inserts and in-store promotions. The company has come under scrutiny for a pattern of conduct that includes below-cost pricing, paying customers not to do business with competitors and accusations of computer hacking.
Were The Robber Barons Transparent?
Going back into history it is sort of hard to pick a starting point (one can go to the spice trade & orders that are unsealed at sea, or likely earlier than that) but to pick a somewhat recent starting point, we could look at the railroads:
So how did unnecessary, inefficient railroads get built? Because of government subsidies. In short, the federal government paid to build the railroads through massive financing subsidies and also gave them ample land grants. The trick to building a railroad was not knowing anything about railroads or even about business; it was having friends in Washington who could give you the right financing and land subsidies.
Even then, the railroads lost money. Not only was there insufficient demand for their services, but they were run by people who were generally incompetent. (For one thing, they didn’t even know their own costs of doing business.) Yet the people who owned the railroads made fabulous amounts of money (of which Stanford University is one symbol). The main way to do this was simple. The people who controlled a railroad (generally by putting up very little of their own money, thanks to the government subsidies) would also wholly own a construction company. They would cause the railroad to overpay the construction company to build the railroad—in effect transferring wealth from railroad stockholders and creditors into their own pockets
What did the Robber Barons invest in? In large part government, media & educational institutions so that they could help "educate" society on how to behave much more civilly than they have.
Corporate Advocacy
There are tons of marketing campaigns designed to "educate" society about the impacts of various companies. BP now markets the gulf coast economy they plundered.
"Get the facts" styled campaigns are rarely about promoting a complete worldview.
Remember the $500 million fine for Google from them pushing ads selling overseas Viagra in the US? Now they promote scaremongering ads against fakes from filthy labs.
Coca-cola runs The Beverage Institute & has "doctors" highlight how healthy soda is.
At the same time, when Pepsi was sued over an alleged rat being in a can of Mountain Dew. Pepsi's defense claimed: "the mouse would have dissolved in the soda had it been in the can from the time of its bottling until the day the plaintiff drank it" turning the mouse into a 'jelly-like' substance. But don't worry folks, it's healthy. :D
It is hard to know what is in our food & those who label things as organic have to fill out more paperwork than those who manufacture frankenfood. Then there are the baseline chemicals sold as biodegradable which are not. ;)
One of the largest religious institutions was found to be associated with illegally selling off hundreds of thousands of babies (after telling the single mother that their newborn child died). This process was going on through the late 1980's!
This past holiday season Best Buy not only sold products they didn't have, but in many cases when they did have them they charged a rate higher than the one advertised unless you caught it & forced them to charge you the advertised price.
When looking at my credit card bill I saw a scammy $22.99 charge on it for a credit report I have never ordered. I looked up information about the "company" offering that service & the #1 result (with sitelinks) was my darn credit card company's website! They had to conduct a block on themselves, but if you don't notice it they will steal $23 a month until you die. ;)
Is Our Financial System Transparent?
When one looks at the field of finance it is story after story of deception, nontransparency & lawlessness. It is a constant reminder that there is no such thing as business ethics.
Bank of New York Mellon ripped off their clients with unsavory Forex rates: "As investigators sought to determine whether the bank overcharged clients to execute their currency trades, a senior BNY Mellon executive nicknamed "Rambo" urged traders not to tell clients how much money they made on trading, according to the informant."
A former Federal Reserve member writes about the Fed: "No matter the legalistic interpretation, the Fed is, working through the ECB, bailing out European banks and, indirectly, spendthrift European governments. It is difficult to count the number of things wrong with this arrangement."
"What’s happened is that, almost overnight, we’ve switched from democracy in real-property recording to oligarchy in real-property recording. There was no court case behind this, no statute from Congress or the state legislatures. It was accomplished in a private corporate decision. The banks just did it." - Christopher Peterson
The financial markets are becoming glorified crack houses: "Frankly, I am concerned that Wall Street is becoming little more than a glorified crack house. Day after day, the sole focus of Wall Street is on more sugar, stronger sugar, Big Bazookas of sugar, unlimited sugar, and anything that will get somebody to deliver the sugar faster. This is like offering a lollipop to quiet down a 2-year old throwing a tantrum, and expecting that the result will be fewer tantrums. What we have increasingly observed over the past decade is nothing but the gradual destruction of the ability of the financial markets to allocate capital for the benefit of future growth. By preventing the natural discipline of the markets to impose losses on poor stewards of capital, and to impose interest rates high enough to force debtors to allocate the capital usefully, the world's policy makers are increasingly wrecking the prospects for long-term economic growth."
Companies are often brought private, leveraged up on debt & have their pension programs destroyed to make "profits" for private equity investors: "Nowadays private-equity firms often spend hundreds of millions of their own money on an acquisition (BW -- Feb. 27). Just as often, though, they load up the companies with debt and use the money to pay themselves special dividends and other fees that allow them to profit even if the company itself struggles. Then the backers take the company public, often pocketing the lion's share of the offering."
Individuals who put in extra hours of work because they are sold on the promise of their options may also find thosedisappear: "Taking away the value of options that are vested means that the concept of vesting becomes bogus. It doesn't matter whether the employee understood if this was the deal or not, it's a scummy practice, and it's ultimately self-defeating (both for the company and the industry as a whole). Who would go to work for Skype (or any PE-backed company) in the future? "
Limitless fraud before the courts & dancing on the graves of the newly homeless: "Court records show that the firm angered state court judges for alleged false statements and filing suspect documents. Arthur Schack, a state court judge in Brooklyn, in a 2010 ruling said that pleadings by the Baum firm on behalf of HSBC Bank, a unit of London-based HSBC Holdings, in a foreclosure case were "so incredible, outrageous, ludicrous and disingenuous that they should have been authorized by the late Rod Serling, creator of the famous science-fiction television series, The Twilight Zone."
...
The law firm said it would shut down after New York Times columnist Joe Nocera in November published photographs of a 2010 Baum firm Halloween party in which employees dressed up as homeless people. Another showed part of Baum's office decorated to look like a row of foreclosed houses."
That theft of physical property is ongoing: "Also announced over the weekend was the jaw-dropping, yet illuminating fact that the MF Global bankruptcy was fraudulently, nefariously and illegally drawn up as a Chapter 7 BK for a SECURITIES DEALER and NOT a commodity brokerage as it should have been. Look, MF Global was the second-largest non-bank FCM in the United States next to NewEdge which is the old FIMAT. If MF Global wasn’t an FCM, then there are no FCMs. Of course it was an FCM. It had $7.2 billion in customer seg funds as of August 31, 2011. And yet MF Global was immediately, from the get-go, put into Chapter 7 BK as a SECURITIES FIRM. This is fraud. MF Global’s BK should have OBVIOUSLY been established under Subchapter IV of the Chapter 7 code as a COMMODITY BROKERAGE."
And as banking criminals literally steal money, destroy lives & undermine the rule of law to grow their "profits" sleazeballs like Jamie Dimon think that the reason people hate them is envy.
The above makes no mention of helping Greece hide governmental debt, bid-rigging bribes in Jefferson County, robosigning bogus foreclosure documents, and a host of other crimes. But one thing in common with all the above crimes is this: no jailtime for the banksters.
Big banks represent the ultimate in concentrated economic power in today’s economies. They are able to resist all meaningful reform that could really change their compensation schemes. Their executives want to get all the upside while facing none of the true downside.
But capitalism without the prospect of failure is not any kind of market economy. We are running a large-scale, nontransparent, and dangerous government subsidy scheme for the benefit primarily of a very few, extremely wealthy people.
The actions of the financial cartel are both obvious & predictable. And the damage they do is felt worldwide:
Credit-financed economic booms, by turns in private then public credit as one ratchets up the other over a series of booms and busts, are as irresistible to politicians as hookers and maids.
...
The failures of American FIRE Economy policies are behind the movements in Libya, Yemen, and Syria, as reflation measures, from quantitative easing to currency depreciation, steal purchasing power from low income families world wide, acting as the most regressive tax imaginable. Simmering hatreds are exacerbated by the developing global crisis over oil supplies and costs.
...
The so-called debate about debt ceilings, spending cuts, and entitlements reductions is a red herring. The public debt crisis arose from the 2007 - 2008 private credit market crisis, not the government liabilities that have been building for decades. The mistake of both the left and the right is thinking that we can escape an output gap without facing up to the politically unpopular task of demanding that creditors take a loss on loans taken out during the credit bubble era.
A creditor that makes bad loans deserves to go out of business. Their outsized compensation can't be justified unless they are also made to eat their losses. But rather than holding them accountable for their own actions, societies the world overabsorb that pain.
"Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power"- Benito Mussolini
Money is a human construct. The fact that our money is now backed by nothing more than our collective future ability to "produce" relegates us to that of slaves.
Money=paper=blood hours.
Blood hours are a finite measure. Heartbeats.
What's in your wallet? Is it the new debt slavery card: "A personal bankruptcy is supposed to cut borrowers loose from lenders and debt collectors, but Capital One Financial Corp.—one of the nation's largest credit-card issuers—sometimes doesn't want to let go."
After dropping his younger daughter at school, Octa walked into Citibank’s credit card collection department on the fifth floor of the Jamsostek tower just after 10 a.m. Four hours later, he left the 25-story building slumped motionless in a wheelchair -- a victim of what police allege was a violent assault by debt collectors. Driven to a nearby hospital in a Citibank car, Octa was pronounced dead on arrival.
Unfortunately, even if you stay out of debt, you are forced to support banking scams:
before being bailed out by governments, banks had never made any return in their history, assuming that their assets are properly marked to market. Nor should they produce any return in the long run, as their business model remains identical to what it was before, with only cosmetic modifications concerning trading risks.
So the facts are clear. But, as individual taxpayers, we are helpless, because we do not control outcomes, owing to the concerted efforts of lobbyists, or, worse, economic policymakers. Our subsidizing of bank managers and executives is completely involuntary.
The way the banks make money now is by hiding their losers off balance-sheet, or by forcing them on the taxpayers, and after having themselves declared "systemically important," adjusting their on balance-sheet exposures accordingly, crashing the system and cashing out on their leveraged derivative bets, also at the taxpayers' expense.
In real life, if there is such a thing anymore, all of the major banks are arguably insolvent. So, in reality, they're not making any money at all, they are merely having it transferred to them by their political operatives in Congress and the Federal Reserve Bank. This, after all, is the modern purpose of the Congress, and has always been the purpose of the Federal Reserve System.
government and banks are stuck together like a couple of dogs screwing and we don't know which is on top. Here, Republicans need government to finance war and Democrats need it to finance social programs. Both need it to finance both, as that is how government attempts to maintain power and influence over the people this day and time.
When Senate Democrats finally brokered a compromise over the proposed health-care law, a group of hedge funds were let in on the deal, learning details hours before a public announcement on Dec. 8, 2009.
The news was potentially worth millions of dollars to the investors, though none would publicly divulge how they used the information. They belong to a select group who pay for early, firsthand reports on Capitol Hill.
Since most money comes into circulation as debt (and due to the compounding nature of debt interest), if those at the top are not allowed to fail then those at the bottom will fall hard:
In the past, periods dominated by virtual credit money have also been periods where there have been social protections for debtors. Once you recognize that money is just a social construct, a credit, an IOU, then first of all what is to stop people from generating it endlessly? And how do you prevent the poor from falling into debt traps and becoming effectively enslaved to the rich? That’s why you had Mesopotamian clean slates, Biblical Jubilees, Medieval laws against usury in both Christianity and Islam and so on and so forth.
Since antiquity the worst-case scenario that everyone felt would lead to total social breakdown was a major debt crisis; ordinary people would become so indebted to the top one or two percent of the population that they would start selling family members into slavery, or eventually, even themselves.
Well, what happened this time around? Instead of creating some sort of overarching institution to protect debtors, they create these grandiose, world-scale institutions like the IMF or S&P to protect creditors. They essentially declare (in defiance of all traditional economic logic) that no debtor should ever be allowed to default. Needless to say the result is catastrophic. We are experiencing something that to me, at least, looks exactly like what the ancients were most afraid of: a population of debtors skating at the edge of disaster.
And, I might add, if Aristotle were around today, I very much doubt he would think that the distinction between renting yourself or members of your family out to work and selling yourself or members of your family to work was more than a legal nicety. He’d probably conclude that most Americans were, for all intents and purposes, slaves.
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Clearly any pretence that markets maintain themselves, that debts always have to be honored, went by the boards in 2008. That’s one of the reasons I think you see the beginnings of a reaction in a remarkably similar form to what we saw during the heyday of the ‘Third World debt crisis’ – what got called, rather weirdly, the ‘anti-globalization movement’. This movement called for genuine democracy and actually tried to practice forms of direct, horizontal democracy. In the face of this there was the insidious alliance between financial elites and global bureaucrats (whether the IMF, World Bank, WTO, now EU, or what-have-you).
Of course there are "opposition research" hacks willing to dig up dirt on anyone with wide reach who opposes the state-sponsored fraud: "It will be vital,” the memo says, “to understand who is funding it and what their backgrounds and motives are. If we can show that they have the same cynical motivation as a political opponent it will undermine their credibility in a profound way.”
In 2004 the FBI warned that there was an "epidemic" of mortgage fraud and that it would create a crisis.
"My administration is the only thing between you and the pitchforks," the president told them.
And, in spite of the FBI highlighting the massive mortgage fraud, and the above quote, the president (who is a horrible human being) aims to keep the population misinformed & ignorant, publicly stating that what Wall St did wasn't illegal!
this is how the much-lauded "freedom of the press" myth in the US actually works. If you perform the job of an actual journalist, telling truth to power, forget about attending press conferences at the White House, Pentagon or State Department. You won't even be admitted in the building.
The people who most heavily rely on pseudonyms in online spaces are those who are most marginalized by systems of power. “Real names” policies aren’t empowering; they’re an authoritarian assertion of power over vulnerable people.
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.
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For many years it was true that SEO = links, but due to the rise of rel=nofollow, fearmongering & social media, organic links have lost much of their relative importance in many verticals.
Some of Google's new search results look quite alarming in terms of every single link above the fold is either a paid ad, or links to yet another Google page wrapped in ads.
I have a huge monitor & it is impossible for me to click *anywhere* above the fold on some search results without going through Google's toll booth or clicking off to yet another Google ad wrapped page.
(click on the image for the full sized view)
Some people have given Google the benefit of the doubt "well this is just vertical search" and "this is just for the consumer" but we see that in many cases it harms consumers by limiting choice:
Charlie Leocha, the director of the Consumer Travel Alliance, says Google Flight Search is “limiting consumers’ knowledge.” He explains, “this is a situation where Google is trusted as a ‘search engine’ that goes across the whole Web, but it is only going to a small select group of airlines and including them in Flight Search.”
The bottom line?
According to Leocha, “Google and the airlines have a sweetheart deal with each other, and the consumers are getting screwed.”
Those who coddled Google & gave Google the benefit of the doubt now have egg on their face, and the industry as a whole is poorer for their poor judgement & lack of stewardship.
As absurd as the above behavior is, it gets worse. When Google acquired DoubleClick, Larry Page wanted to keep Performics (an SEO/SEM company). But since it would have been a flagrant violation of law for him to run an SEO company, they now decide that nobody should run an SEO company...telling consumers to simply forget about SEO even when they specifically search out information about SEO!
Google recently ran AdWords ads with the following copy when consumers searched Google for SEO information:
You can't be 100% certain which is which until long AFTER you click. And by then Google's cash register has already rang & it is off to dupe the next person.
Comments turned off, as this is a conversation that NEEDS TO SPREAD. If you run a blog about SEO, you owe it to your readers & your industry to cover this topic. If this topic doesn't get broad coverage then pretty soon your career might be over & you will deserve it too.
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.
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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 
