Google's Big Brand Shakedown

Inorganic SERPs

A few weeks back Google introduced literally organic-free search results on mobile devices in the travel vertical. Google is now deepening that organic-free offering, announcing their new mobile travel guides would launch in 201 cities.

If you live outside of the United States it can be hard to appreciate just how ad heavy some of Google's search results have become in key ad categories.

Plenty of Room in Hotel California

When Google rolled out the 4 AdWords ads above the organic results layout they mentioned it would mostly appear on highly commercial search terms like New York Hotels. Hotels are one of the most profitable keyword themes, because:

  • the searches tend to be fairly late funnel
  • the transactions are for hundreds of dollars
  • OTAs and other intermediaries often get somewhere between 10% to 30% of the transaction

Google search results for hotels not only contain 4 AdWords ads, but they also have price ads on the "organic" local listings. That gives Google a second bite at the apple on monetizing the user.

Click on any of those prices and you get sent to a beautiful(ly ugly) ad heavy click circus page like the following.

As Google has displaced those sorts of markets, portals like Yahoo! have announced the shutdown of some of their vertical offerings:

today we will begin phasing out the following Digital Magazines: Yahoo Food, Yahoo Health, Yahoo Parenting, Yahoo Makers, Yahoo Travel, Yahoo Autos and Yahoo Real Estate.

Direct Marketing Budgets vs Brand Ad Budgets

Google recently had another vertical search program which paralleled their hotel offering which focused on finance. It allowed users to compare things like credit cards, home loans, auto insurance policies, and other financial offers. They acquired BeatThatQuote, hard coded aggressive placements for themselves near the top of the search results, increased the size of these custom ad units - and then killed them off.

Why would Google invest hundreds of millions of Dollars in vertical search only to kill the offering?

It turns out the offering was too efficient from an advertiser perspective, so it didn't drive enough yield for Google.

If it is a lead-based product the ad rates are set by rational lead values. There is no brand manager insisting on paying $120 a click because "we HAVE TO be #1 in Google for auto insurance."

If Google does lead generation and sells the lead off exclusively they get paid precisely once for the consumer. Whereas if Google scrubs many aggregators from the market & allows searchers to click on one brand at a time they get to monetize the user many times over and take advantage of any irrational bidders in the ecosystem.

As long as Google is monetizing brand advertising budgets they can insert many layers of fat into the ad stack.

(Really broad broad match, enhanced campaigns, fat-thumb mobile clicks, mobile app clicks, re-targeted ads for products which were already purchased, endless auto-play YouTube video streams with ads in them, etc.)

Riding the Google Waves

Google's vertical ad offerings may come and go, the biases behind the relevancy algorithms may shift, and the ecosystem constantly has some number false positives. As search engines test out various features & shift their editorial policies some companies get disrupted and are forced to change their business models, while other companies get disrupted and outright disappear.

Google's move into auto insurance might have been part of the reason Bankrate decided to exit the business. But Google exiting the Google Compare business and adding a 4th text AdWords ad slot above the organic search results a few days before Bankrate reported results caused BankRate's stock to slide by as much as 47%.

Brand Building to Lower Risk

Part of the SEO value of building a brand is the strength of the brand awareness helps you rank better across whatever portion of the search ecosystem Google has not yet eaten, while lowering your risk of becoming a false positive statistic. Branded-related searches should (in theory) also provide some baseline level of demand which insulates against ranking shifts on other keywords. And having a brand name rather than a generic business name allows one to go from one market to the next.

Just be Apple...

Computers.com won't magically morph into MP3player.com then CellPhone.com then Tablet.com then Watch.com, but Apple was able to move from one market to the next with ease due to consumer familiarity and loyalty toward their brand.

Investing in building brand awareness is often quite expensive & typically requires many years of losses to eventually see positive returns. Trends come and go, and with them so do associated brands.

Heavily invest in the wrong trend & die.

Wait too long to invest in an important trend & die.

Few companies are able to succeed in field after field after field.

For every Apple-like example, there are dozens of losers. Look at how many computer companies shifted to an emphasis on higher margin laptops, then sold off their laptop divisions for almost nothing and chased cell phones for growth. While they outsourced everything and relied on a faux open source software provider they guaranteed their own death. Look at how some of the mobile companies are valued at almost nothing, or those that have been bought & gutted like Motorola or Nokia. There are only 3 somewhat strong mobile manufacturers:

Adding Apple management to another company does not guarantee success.

The Financial Crisis & Brand

When the financial crisis happened about 8 years ago Google saw both their revenue growth rate and their stock price crash. Direct marketers receded with the consumer, but many pre-approved brand ad campaigns continued to run. Google's preferred custom shifted away from direct marketers toward large global brands.

When the economy started to recover, Google was quick to ban 30,000 affiliates from the AdWords auction.

When Trends Take Off

As trends become obvious & companies succeed wildly, competitors chase them.

The tricky part is the perception of success & lasting success are not one and the same.

Remember when Demand Media was allegedly profitable as hell? That was sales material for the pump-n-dump IPO & their stock has only corrected about 99% since then.

Since dumping that profitable as hell company on the public they've only had to invest in removing about 2.4 million articles from eHow.

The site is still torched by the Panda algorithm.

And they are still losing money. ;)

Companies like Mahalo which chased eHow also washed up on the rocks. They've since pivoted to YouTube, to mobile apps, to email & perhaps should re-brand to Pivot, Inc.

Groupon was another surefire trend. They're off about 84% from their peak & most the Groupon clones have went under, while Groupon has divested of most of their acquisition-driven international expansion. Numerous other coupon & flash sale sites which haven't yet went under laid off many people and are off significantly from their peaks or were sold for a song.

Trends come and go. Baseball cards are largely a thing of the past. So are Pet Rocks, Cabbage Patch Kids, and Beanie Babies.

Perhaps soon independent single author blogs and SEO-driven publishing business models will be added to the list. ;)

Copycats & Trademark Infringement

Some brands have a strong staying power. But even if those brands are highly valued, they still face competition from knock offs.

If you shop at big box stores in the United States you may have no awareness of the following product.

Look a bit closer at that image & you'll see it wasn't LEGO, but rather LEBQ.

Sales for Le Bao Quan are not sales for the core LEGO brand, the consumer gets acclimated to an artificially low price point, and imagine what sort of a traumatic impact it might have for a child if their first LEGO-like toy looks like a pig fresh from the butcher's shop.

The key difference between that sort of stuff and gray areas monetized by the big online platforms is you may have to go to third world to find the sketchy physical products in the real world; whereas the big online platforms all have some number of sketchy globally accessible offers at any point in time. Here are just a few examples:

Monetizing Brand (Retailer)

At the core, all these platform plays are both brands unto themselves & places where third party brands get monetized.

The start up costs to have leverage to work with brands in an official partnership can be quite significant. Just look at how much Jet.com has raised and how much hustle they've used to get in the game, even with their massive burn rate.

Part of why Apple has such strong margins is their brand is so strong they can dictate terms and control the supply chain. Others are willing to give them the majority of the profits because carrying them completes the catalog and helps the retailers sell other, weaker goods where the retailers have higher profit margins.

And even then, when you get outside their core products, there are listings for fake OEM Apple stuff all over the web.

Luckily when fake products use spammy titles on Amazon the reviewers will quickly highlight if they are of inferior quality. But if they look authentic & work, it can be hard for the brands to know unless they proactively track everything. And as that demand gets filled, if there is a negative experience it may lead to customer complaints about the brand, whereas if there are no complaints & the product works it still leaves less money for the brand which is being arbitraged.

"The Internet doesn't change everything. It doesn't change supply and demand." - Andy Grove

Other players with weaker brands and a roll reversal on who needs who can quickly find themselves in a pickle.

Monetizing Brand (Financeer)

Some companies die slowly, as accountants drive strategy & they outsource their key points of differentiation and become unremarkable. When Yahoo! turned their verticals into thin "me too" outsourced plays they made it easy for Google to offer something of a similar quality, which in turn left the Yahoo! vertical properties without much distribution.

As Yahoo! struggles, some investors want to buy the core Yahoo! business so Yahoo! can exit the web business while being a holding company for Alibaba and Yahoo! Japan stock.

In an age of declining interest rates, zero interest rates (or even negative rate) policies some investors look to buy brands, streamline operations (mass firings & outsourcing), lever them up on debt & then sell them back off. Some companies like Burger King have cycled through public and private ownership multiple times.

Brands can be purchased just like links. Everything has a price and a value which shifts with the market.

Good to great to gone.

Monetizing Brand (Affiliate)

Some retailers have symbiotic relations with brands they sell, while other platforms may compete more aggressively with those whose products they sell. The same is true with affiliates. Affiliates can genuinely add value & drive new distribution for brands, or they can engage in lower value arbitrage, where they push the brand to pay for what was already owned by it through shady techniques like cookie stuffing.

One of the most one-sided and biased hate-filled perspectives I've ever seen about affiliates is Lori Weiman's guest columns at Search Engine Land.

Just the same, some merchants treat affiliates honestly and fairly, while other merchants have a pattern of scamming their affiliates through lead shaving, adjusting revenue share without telling the affiliates, and a host of other sketchy behaviors.

Monetizing Brand (Search Engine)

Search engines allow competitors or resellers to bid on branded keywords, which creates an auction bidding environment for many branded terms. Typically Google offers the official site / brand clicks at a significant discount for these terms in order to encourage them to compete in the ad marketplace & to help shift some of the organic click mix over to paid clicks.

Google has also tried a number of other initiatives to boost their monetization of branded keywords. A partial list of such efforts includes:

Sophisticated vs Unsophisticated SEM

Many poorly managed AdWords accounts managed by large ad agency ultimately end up far more damaging to brands than the efforts from "shady" affiliates. The set up (which is far more common than most would care to believe) revolves around the ad agency arbitraging the client's existing brand, falsely claiming the revenue generated by that spend to be completely incremental & then get a percent of spend management fee on that spend. The phantom profits which are generated from those efforts are further applied to bidding irrationally high on other terms, to once again pick up more percent of spend management fees.

Savvy search marketers separate the value of traffic from branded and unbranded terms to take a more accurate view of the interaction between investments in paid search and organic search.

Both eBay and Google have done studies on the incrementality of paid search clicks.

eBay being a large brand found they didn't see much incrementality [PDF]. Search Google for eBay and they won't run AdWords ads. eBay still participates in product listing ads / shopping search for other products they carry.

Google (of course) found much more incrementality with paid search ads. While they conducted their internal study and suggested it would be too hard or expensive for most advertisers to conduct such a study, they also failed to mention that the reason it would be expensive for an advertiser to perform such a test is because Google intentionally & explicitly decided against offering those features inside the AdWords platform. It is the same reason Google shut down Google Advisor / Google Compare - offering it doesn't provide Google a guaranteed positive yield when compared against not offering it.

One thing Google did note about seeing higher rates of incremental clicks in their study was when there was increased space between the listings there tended to be a higher rate of incremental ad clicks. This is part of why we see AdWords ads getting larger with more extensions & there being so many features in mobile which push the organic results below the fold.

The same Lori Weiman who hates affiliates is currently running (literally) an 8-part series on why you should bid on your brand keywords.

If anyone other than a search engine monetizes brand that might be bad, but if the search engines do it then going along with the game is always the right call.

Owning the Supply Chain

"The true victory (the true 'negation of the negation') occurs when the enemy talks your language." - Slavoj Zizek

The opposite is also true. If you are a brand who is being dictionary attacked by an ad network, the brand quickly shifts from an asset to a liability.

"The only thing that I'd rather own than Windows is English, because then I could charge you two hundred and forty-nine dollars for the right to speak it." - Scott McNealy

Google owns English and Spanish and German and ...

Is your control over the supply chain strong enough that you can afford to be below the fold for your own brand?

While you think about that, other pieces of the supply chain are merging in key verticals to better combat the strength of search ad networks.

  • Expedia, Travelocity & Orbitz
  • Zillow & Trulia
  • Staples, OfficeMax & OfficeDepot

How much are you willing to pay Google for each click for a brand you already own?

When does that stop being worth it?

During the next recession many advertisers will find out.

Added: Within days of writing the above post Google was once again found running ads promoting phishing campaigns, even though the ads arbitrage Google's branded keyword terms.

Apparently that issue isn't something new either.

How Google Search Works in 2016

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Many years ago we created an infographic about how search works, from the perspective of a content creator, starting with their content & following it through the indexing & ranking process.

As users have shifted to mobile devices, the limited screen size of the devices have pushed search engines to squeeze out & displace publishers with their own self-hosted information in an effort to offset the poor usability offered by tiny devices, while ensuring the search habit does not decline.

The philosophy of modern search has thus moved away from starting with information and connecting it to an audience, to starting with the user and customizing the result page to them.

"The biggest three challenges for us still will be mobile, mobile, mobile" - Google's Amit Singhal

How Do Search Engines Work?

The 4 Fundamental Steps of Conversion Optimization

Once upon a time, I was sitting in my office looking over data for one our new clients and reviewing the conversion project roadmap. The phone rang and on the other end was the VP of marketing for a multi-billion-dollar company. It is very unusual to get an unannounced call from someone at his level, but he had an urgent problem to solve. A good number of his website visitors were not converting.

His problem did not surprise me. We deal with conversion rates optimization every day.

He invited me to meet with his team to discuss the problem further. The account would be a huge win for Invesp, so we agreed on a time that worked for both us. When the day came, our team went to the company's location.

We started the discussion, and things did NOT go as I expected. The VP, who led the meeting, said, “we have a conversion problem.”

“First-time visitors to our website convert at a rate of 48%. Repeat visitors convert at 80%!”

I was puzzled.

Not sure what exactly puzzled me. Was it the high conversion numbers or was it the fact that the VP was not happy with them. He wanted more.

I thought he had his conversion numbers wrong. But nope. We looked at his analytics, and he was correct. The numbers were simply amazing by all standards. The VP, however, had a different mindset. The company runs thousands of stores around the US. When someone picks up the phone and calls them, they convert callers at a 90% rate. He was expecting the same conversion rate for his online store.

Let's face it. A typical e-commerce store converts at an average of 3%. Few websites are able to get to anywhere from 10 to 18%. These are considered the stars of the world of conversion rates.

The sad truth about a website with 15% conversion rate is that 85% of the visitors simply leave without converting. Money left on the table, cash the store will not be able to capture. Whatever way you think about it, we can agree that there is a huge opportunity, but it is also a very difficult one to conquer.

The Problem with Conversion Optimization

Most companies jump into conversion optimization with a lot of excitement. As you talk to teams conducting conversion optimization, you notice a common thread. They take different pages of the website and run tests on them. Some tests produce results; others do not. After a while, the teams run out of ideas. The managers run out of excitement.

The approach of randomly running tests on different pages sees conversion rate optimization in a linear fashion. The real problem is that no one shops online in a linear fashion. We do not follow a linear path when we navigate from one area of the website to the next. Humans most of the time are random, or, at least, they appear random.

What does that mean?

The right approach to increase conversion rates needs to be systematical, because it deals with irrational and random human behavior.

So, how do you do this?

The Four Steps to Breaking to Double Digits Conversion Rates

After ten years of doing conversion optimization at Invesp, I can claim that we have a process that works for many online businesses. The truth is that it continues to be a work in progress.

These are the four steps you should follow to achieve your desired conversion rate:

Create Personas for Your Website

I could never stop talking about personas and the impact they have on your website. While most companies talk about their target market, personas help you translate your generalized and somewhat abstract target market data into a personalized experience that impacts your website design, copy and layout.

Let's take the example of a consulting company that targets “e-commerce companies with a revenue of 10 million dollars or more.” There are two problems with this statement:

  • The statement is too general about the target market (no verticals and no geography, for example)
  • I am not sure how to translate this statement into actionable items on my website or marketing activity

You should first think about the actual person who would hire the services of this consulting company. Most likely, the sales take place to:

  • A business owner for a company with annual revenue from 10 to 20 million dollars.
  • A marketing director for a company with annual revenue from 20 to 50 million dollars.
  • A VP of marketing for a company with annual revenue over 50 million dollars.

Now, translate each of these three different cases into a persona.

So, instead of talking about a business owner for a company that is generating annual revenue from 10 to 20 million dollars, we will talk about:

John Riley, 43 years old, completed his B.A. in physics from the University of Michigan-Ann Arbor. He is a happy father of three. He started the company in 2007 and financed it from his own pocket. His company generated 13.5 million dollars of revenue in 2014 and expects to see a modest 7% increase in sales in 2015. John is highly competitive, but he also cares about his customers and thinks of them as an extended family. He would like to find a way to increase this year's revenue by 18%, but he is not sure how to do so. He is conservative when it comes to using new marketing techniques. In general, John does not trust consultants and thinks of them as overpaid.

This is an oversimplification of the persona creation process and its final product. But you get the picture. If you are the consulting company that targets John, then what type of website design, copy and visitor flow would you use to persuade him to do business with you?

What data points do you use to create personas for your website? I would start with this:

  • Market research
  • Demographical studies
  • Usability studies
  • Zip code analysis
  • Existing customer surveys
  • Competitive landscape
  • AB and Multivariate testing data

A website or a business should typically target four to seven personas.

Add Traffic Sources

So, you have the personas. These personas should impact your design, copy and visitor flow.

But how?

Let's start by looking at analytics data. Look for a period of six months to one year and see the top traffic sources/mediums. If your website has been online for a while, then you will probably have hundreds of different sources. Start with your top 10 traffic sources/medium and create a matrix for each of the personas/traffic source/landing pages:

Now, your job is to evaluate each top landing page for each traffic source through the eyes of your website personas. For each page, you will answer eight questions.

The persona questions: Eight questions to ask

  • What type of information would persona “x” need to see to click on to the next page on the website?
  • What would be the top concerns persona “x” have looking at the page?
  • What kind of copy does persona “x” need to see?
  • What type of trigger words are important to include on the page for persona “x”?
  • What words should I avoid for persona “x”?
  • What kind of headline should I use to persuade persona “x” to stay on my website?
  • What kind of images should I use to capture persona “x” attention?
  • What elements on the page could distract persona “x”?

As you answer these questions for each of the personas, you will end up with a large set of answers and actions. The challenge and the art will be to combine all these and make the same landing page work for all different personas. This is not a small task, but this is where the fun begins.

Consider the Buying Stages 

You thought the previous work was complex? Well, you haven't seen anything just yet!

Not every visitor who lands on your website is ready to buy. Visitors come to your website in different buying stages, and only 15-20% are in the action stage. The sequential buying stages of a visitor are:

  • Awareness stage (top of the sales funnel)
  • Research stage
  • Evaluating alternatives
  • Action stage
  • Post action

A typical buying funnel looks like this:

How does that translate into actionable items on your website?

In the previous exercise, we created a list of changes on different screens or sections of your website based on the different personas. Now, we are going to think about each persona landing on the website in one of the first four buying stages.

Instead of thinking of how to adjust a particular screen for John Riley, now you think of a new scenario:
Persona “x” is in the “evaluating alternatives” stage of the buying funnel. He lands on a particular landing page. What do I need to adjust in the website design and copy to persuade persona “x” to convert?

Our previous table looks like this now:

Next, answer all eight persona-questions again, based on the different buying stages.

Test your different scenarios

This goes without saying; you should NEVER introduce changes to your website without actually testing them. You can find plenty of blogs and books out there on how to conduct testing correctly if you are interested in learning more about AB testing and multivariate testing.

For a start, keep the five No's of AB testing in mind:

1. No to “Large and complex tests”

Your goal is NOT to conduct large AB or multivariate tests. Your goal is to discover what elements on the page cause visitors to act a specific way. Break complex tests into smaller ones. The more you can isolate the changes to one or two elements, the easier it will be to understand the impact of different design and copy elements on visitors' actions.

2. No to “Tests without a hypothesis”

I can never say it enough. A test without a good hypothesis is a gambling exercise. A hypothesis is a predictive statement about a problem or set of problems on your page and the impact of solving these problems on visitor behavior.

3. No to “Polluted data”

Do not run tests for less than seven days or longer than four weeks. In both scenarios, you are leaving yourself open to the chance of inconsistent and polluted data. When you run a test for less than seven days, website data inconsistencies you are not aware of may affect your results. So, give the test results a chance to stabilize. If you run a test for more than four weeks, you are allowing external factors to have a larger impact on your results.

4. No to “Quick fixes”

Human psychology is complex. Conversion optimization is about understanding visitor behavior and adjusting website design, copy and process to persuade these visitors to convert. Conversion optimization is not a light switch you turn on and off. It is a long-term commitment. Some tests will produce results and some will not. Increases in conversion rates are great but what you are looking for is a window to visitor behavior.

5. No to “Tests without marketing insights”

Call it whatever you like: forensic analysis, posttest analysis, test results assessment. You should learn actionable marketing insights from the test to deploy across channels and verticals. The real power of any testing program lays beyond the results.

If you follow the steps outlined in this blog, you will have a lot to do.

So, happy testing!

About the author: This guide was written by Khalid Saleh. He is the CEO of Invesp, a conversion optimization software and services firm with clients in 11 different countries.

Restoring Firefox Extensions After The Firefox 43 Update

Update: Our extensions are now signed, so you should be able to download the most recent version of them & use them with the most recent version of Firefox without having to mess with the Firefox plugin option security settings.

Firefox recently updated to version 43 & with that, they automatically disabled all extensions which are not signed, even if they were previously installed by a user and used for years.

If you go to the add ons screen after the update (by typing about:addons in the address bar) you will see a screen like this

Extensions which are submitted to the Mozilla Firefox add ons directory are automatically signed when approved, but other extensions are not by default:

Only Mozilla can sign your add-on so that Firefox will install it by default. Add-ons are signed by submitting them to AMO or using the API and passing either an automated or manual code review. Note that you are not required to list or distribute your add-on through AMO. If you are distributing the add-on on your own, you can choose the Unlisted option and AMO will only serve as the way to get your package signed.

In a couple days we will do that submission to get the add ons signed, but if you recently had the extensions go away it is fairly easy to override this signing feature to get the extensions back working right away.

If you recently saw rank checker, SEO for Firefox or the SEO toolbar disabled after a recent Mozilla Firefox update, here is how to restore them...

Step 1: go to the Firefox settings configuration section

Type about:config into the address bar & hit enter. Once that page loads click on the "I'll be careful, I promise" button.

Step 2: edit the signing configuration

Once the configuration box loads you'll see a bunch of different listed variables in it & a search box at the top. In that search box, enter
xpinstall.signatures.required

By default xpinstall.signatures.required is set to TRUE to force add ons to be signed. Click on it until it goes to bold, which indicates that the TRUE setting is set to FALSE.

Step 3: restart Firefox

After changing the add on signature settings, restart Firefox to apply the setting & your Firefox extensions will be restored.

Installing These Extensions On a New Computer

If you are having trouble setting up your extensions on a new computer, start with the above 3 steps & then go here to download & install the extensions.

Publisher Blocking: How the Web Was Lost

Streaming Apps


Google recently announced app streaming, where they can showcase & deep link into apps in the search results even if users do not have those apps installed. How it works is rather than users installing the app, Google has the app installed on a computer in their cloud & then shows users a video of the app. Click targets, ads, etc. remain the same.

In writing about the new feature, Danny Sullivan wrote a section on "How The Web Could Have Been Lost"

Imagine if, in order to use the web, you had to download an app for each website you wanted to visit. To find news from the New York Times, you had to install an app that let you access the site through your web browser. To purchase from Amazon, you first needed to install an Amazon app for your browser. To share on Facebook, installation of the Facebook app for your browser would be required. That would be a nightmare.
...
The web put an end to this. More specifically, the web browser did. The web browser became a universal app that let anyone open anything on the web.

To meaningfully participate on those sorts of sites you still need an account. You are not going to be able to buy on Amazon without registration. Any popular social network which allows third party IDs to take the place of first party IDs will quickly become a den of spam until they close that loophole.

In short, you still have to register with sites to get real value out of them if you are doing much beyond reading an article. Without registration it is hard for them to personalize your experience & recommend relevant content.

Desktop Friendly Design

App indexing & deep linking of apps is a step in the opposite direction of the open web. It is supporting proprietary non-web channels which don't link out. Further, if you thought keyword (not provided) heavily obfuscated user data, how much will data be obfuscated if the user isn't even using your site or app, but rather is interacting via a Google cloud computer?

  • Who visited your app? Not sure. It was a Google cloud computer.
  • Where were they located? Not sure. It was a Google cloud computer.
  • Did they have problems using your app? Not sure. It was a Google cloud computer.
  • What did they look at? Can you retarget them? Not sure. It was a Google cloud computer.

Is an app maker too lazy to create a web equivalent version of their content? If so, let them be at a strategic disadvantage to everyone who put in the extra effort to publish their content online.

If Google has their remote quality raters consider a site as not meeting users needs because they don't publish a "mobile friendly" version of their site, how can one consider a publisher who creates "app only" content as an entity which is trying hard to meet end user needs?

We know Google hates app install interstitials (unless they are sold by Google), thus the only reason Google would have for wanting to promote these sorts of services would be to justify owning, controlling & monetizing the user experience.

App-solutely Not The Answer


Apps are sold as a way to lower channel risk & gain direct access to users, but the companies owning the app stores are firmly in control.

Everyone wants to "own" the user, but none of the platforms bother to ask if the user wants to be owned:

We’re rapidly moving from an internet where computers are ‘peers’ (equals) to one where there are consumers and ‘data owners’, silos of end user data that work as hard as they can to stop you from communicating with other, similar silos.
...
If the current trend persists we’re heading straight for AOL 2.0, only now with a slick user interface, a couple more features and more users.

You've Got AOL

The AOL analogy is widely used:

Katz of Gogobot says that “SEO is a dying field” as Google uses its “monopoly” power to turn the field of search into Google’s own walled garden like AOL did in the age of dial-up modems.

Almost 4 years ago a Google engineer described SEO as a bug. He suggested one shouldn't be able to rank highly without paying.

It looks like he was right. Google's aggressive ad placement on mobile SERPs "has broken the will of users who would have clicked on an organic link if they could find one at the top of the page but are instead just clicking ads because they don’t want to scroll down."

In the years since then we've learned Google's "algorithm" has concurrent ranking signals & other forms of home cooking which guarantees success for Google's vertical search offerings. The "reasonable" barrier to entry which applies to third parties does not apply to any new Google offerings.

And "bugs" keep appearing in those "algorithms," which deliver a steady stream of harm to competing businesses.

From Indy to Brand

The waves of algorithm updates have in effect increased the barrier to entry, along with the cost needed to maintain rankings. The stresses and financial impacts that puts on small businesses makes many of them not worth running. Look no further than MetaFilter's founder seeing a psychologist, then quitting because he couldn't handle the process.

When Google engineers are not focused on "breaking spirits" they emphasize the importance of happiness.

The ecosystem instability has made smaller sites effectively disappear while delivering a bland and soulless result set which is heavy on brand:

there’s no reason why the internet couldn’t keep on its present course for years to come. Under those circumstances, it would shed most of the features that make it popular with today’s avant-garde, and become one more centralized, regulated, vacuous mass medium, packed to the bursting point with corporate advertising and lowest-common-denominator content, with dissenting voices and alternative culture shut out or shoved into corners where nobody ever looks. That’s the normal trajectory of an information technology in today’s industrial civilization, after all; it’s what happened with radio and television in their day, as the gaudy and grandiose claims of the early years gave way to the crass commercial realities of the mature forms of each medium.

If you participate on the web daily, the change washes over you slowly, and the cumulative effects can be imperceptible. But if you were locked in an Iranian jail for years the change is hard to miss.

These sorts of problems not only impact search, but have an impact on all the major tech channels.

If you live in Goole, these issues strike close to home.

And there are almost no counter-forces to the well established trend:

Eventually they might even symbolically close their websites, finishing the job they started when they all stopped paying attention to what their front pages looked like. Then, they will do a whole lot of what they already do, according to the demands of their new venues. They will report news and tell stories and post garbage and make mistakes. They will be given new metrics that are both more shallow and more urgent than ever before; they will adapt to them, all the while avoiding, as is tradition, honest discussions about the relationship between success and quality and self-respect.
...
If in five years I’m just watching NFL-endorsed ESPN clips through a syndication deal with a messaging app, and Vice is just an age-skewed Viacom with better audience data, and I’m looking up the same trivia on Genius instead of Wikipedia, and “publications” are just content agencies that solve temporary optimization issues for much larger platforms, what will have been point of the last twenty years of creating things for the web?

A Deal With the Devil

As ad blocking has grown more pervasive, some publishers believe the solution to the problem is through gaining distribution through the channels which are exempt from the impacts of ad blocking. However those channels have no incentive to offer exceptional payouts. They make more by showing fewer ads within featured content from partners (where they must share ad revenues) and showing more ads elsewhere (where they keep all the ad revenues).

So far publishers have been underwhelmed with both Facebook Instant Articles and Apple News. The former for stringent ad restrictions, and the latter for providing limited user data. Google Now is also increasing the number of news stories they show. And next year Google will roll out their accelerated mobile pages offering.

The problem is if you don't control the publishing you don't control the monetization and you don't control the data flow.

Your website helps make the knowledge graph (and other forms of vertical search) possible. But you are paid nothing when your content appears in the knowledge graph. And the knowledge graph now has a number of ad units embedded in it.

A decade ago, when Google pushed autolink to automatically insert links in publisher's content, webmasters had enough leverage to "just say no." But now? Not so much. Google considers in-text ad networks spam & embeds their own search in third party apps. As the terms of deals change, and what is considered "best for users" changes, content creators quietly accept, or quit.

Many video sites lost their rich snippets, while YouTube got larger snippets in the search results. Google pays YouTube content creators a far lower revenue share than even the default AdSense agreement offers. And those creators have restrictions which prevent them from using some forms of monetization while forces them to accept other types of bundling.

The most recent leaked Google rater documents suggested the justification for featured answers was to make mobile search quick, but if that were the extent of it then it still doesn't explain why they also appear on desktop search results. It also doesn't explain why the publisher credit links were originally a light gray.

With Google everything comes down to speed, speed, speed. But then they offer interstitial ad units, lock content behind surveys, and transform the user intent behind queries in a way that leads them astray.

As Google obfuscates more data & increasingly redirects and monetizes user intent, they promise to offer advertisers better integration of online to offline conversion data.

At the same time, as Google "speeds up" your site for you, they may break it with GoogleWebLight.

If you don't host & control the user experience you are at the whim of (at best, morally agnostic) self-serving platforms which could care less if any individual publication dies.

It's White Hat or Bust...


What was that old white hat SEO adage? I forget the precise wording, but I think it went something like...

Don't buy links, it is too risky & too uncertain. Guarantee strong returns like Google does, by investing directly into undermining the political process by hiring lobbyists, heavy political donations, skirting political donation rules, regularly setting policy, inserting your agents in government, and sponsoring bogus "academic research" without disclosing the payments.

Focus on the user. Put them first. Right behind money.

Ad Network Ménage à Trois: Bing, Yahoo!, Google

Yahoo! Tests Google Again

Back in July we noticed Yahoo! was testing Google-powered search results. From that post...

When Yahoo! recently renewed their search deal with Microsoft, Yahoo! was once again allowed to sell their own desktop search ads & they are only required to give 51% of the search volume to Bing. There has been significant speculation as to what Yahoo! would do with the carve out. Would they build their own search technology? Would they outsource to Google to increase search ad revenues? It appears they are doing a bit of everything - some Bing ads, some Yahoo! ads, some Google ads.

The Growth of Gemini

Since then Gemini has grown significantly:

Yahoo has moved quickly to bring search ad traffic under Gemini for advertisers that have adopted the platform. For some perspective, in September 2015, Yahoo.com produced a little over 50 percent of the clicks that took place across the Bing Ads and Gemini platforms. For advertisers adopting Gemini, Gemini produced 22 percent of combined Bing and Gemini clicks. Given the device breakdown of Yahoo’s traffic, this amounts to about two-thirds of the traffic it is able to control under the renegotiated agreement.

That growth has come at the expense of Bing ad clicks, which have fallen significantly:

Shared Scale to Compete

Years ago Microsoft was partnered into the Yahoo!/Overture ad network to compete against Google. The idea was the companies together would have better scale to compete against Google in search & ads. Greater scale would lead to a more efficient marketplace, which would lead to better ad matching, higher advertiser bids, etc. This didn't worked as well as anticipated. Originally under-monetization was blamed on poor ad matching. Yahoo! Panama was a major rewrite of their ad system which was supposed to fix the problem, but it didn't.

Even if issues like bid jamming were fixed & ad matching was more relevant, it still didn't fix issues with lower ad depth in emerging markets & arbitrage lowering the value of expensive keywords in the United States.

Understanding the Value of Search Clicks

When a person types a keyword into a search box they are expressing significant intent. When a person clicks a link to land on a page they may still have significant interest, but generally there is at least some level of fall off. If I search for a keyword the value of my click is $x, but if I click a link on a "top searches" box, the value of that click may perhaps only be 5% or 10% what the value of a hand typed search. There is less intent.

Here is a picture of the sort of "trending now" box which appears on the Yahoo! homepage.

Typically those sorts of searches include a bunch of female celebrities, but then in any such box there will be one or two money terms added, like [lower blood pressure] or [iPhone 6s]. People who search for those terms might have $5 or $10 of intent, but people who click those links might only have a quarter or 50 cents of intent.

That difference in value can utterly screw an advertiser who gets their high-value keyword featured while they are sleeping or not actively monitoring & managing their ad campaign.

For what it is worth, even Google has tested some of these sort of these "search" traffic generation approaches during the last recession. On the Google AdSense network Google was buying banner ads telling people to search for [credit cards] & if they clicked on those banner ads they ended up on a search result page for [credit cards].

To this day many companies run contextual ads that drive search volume, but the difference between today & the Yahoo! which failed to monetize search is there is (at least currently) a greater focus on traffic quality.

Under-performance Due to Shady Traffic Partners

Yahoo! continued to under-perform in large part because Yahoo! had a lot of "search" partners with many lower quality traffic sources mixed in their traffic stream & they didn't even allow advertisers to opt out of the partner network until after Yahoo! decided to exit the search market. As bad as the above sounds, it is actually worse, as some larger partners had access to advertiser information in a way that allowed them to aggressively arbitrage away the value of high advertiser bids wherever and whenever an advertiser overbid.

So you would bid thinking you were buying primarily search traffic based on the user intent of a person searching for something, but you might have been getting various layers of arbitrage of lower quality traffic, traffic from domain lander pages, or even some mix of robotic traffic from clickbots. Those $30 search ad clicks are a sure money loser if it is a clickbot software program doing the click.

And not only were some of Yahoo!'s partners driving down the value of clicks on Yahoo! itself, but Yahoo! was paying some of the larger partners in the high 80s to low 90s percent of revenue. Here is a (made up) example chart for illustration purposes, where the (made up) partner is getting a 90% TAC

  Advertiser Bid Y! Search Clicks Partner Clicks Total Clicks Total Revs TAC Rev after TAC
No Partners $30 3,000 0 3,000 $90,000 $0 $90,000
Bit of Arb $25 3,000 1,000 4,000 $100,000 $22,500 $77,500
Heavy Arb $10 3,000 6,000 9,000 $90,000 $54,000 $36,000

Why did Yahoo! allow the above sort of behavior to go on? It is hard to believe they were completely unaware of what was going on, particularly when it was so obvious to outside observers. More likely it was that they were rapidly losing search share & wanted the topline revenue growth to make their quarterly number. By the time they realized what damage they had already done to their ecosystem, they were already too far down the path to correct it & were afraid to do anything which significantly hit revenues.

The rapid rise and fall of a large Yahoo! search partner named Geosign was detailed by the Canadian Financial Post, in an article which is now offline, but available via the Internet Archive Wayback Machine:

Companies fail all the time. Sometimes with little warning. But companies that are highly profitable and only weeks removed from a record-setting venture capital investment? Not so much. Yet in Geosign's case, the cuts that began last May continued through the summer. Late last year, fewer than 100 employees remained. Today, Geosign itself no longer exists, its still-functioning website an empty reminder of its former promise. And while the national business media has, until now, overlooked the story - surprising, given the size of the investment and the fact that Google played a direct role in the outcome - within Canada's technology and venture-capital communities, the $160-million investment is known as the deal "that didn't go well." When the collapse happened, even jaded industry watchers accustomed to financial debacles in the tech sector were stunned. "I've seen a lot of meltdowns," says Duncan Stewart, a technology and investment analyst in Toronto. "But something happening like this, over just a few weeks, that's unprecedented in my experience."

Other traffic sources like domain parking have also sharply declined, due to a variety of factors like: web browsers replacing address bars with multi-purpose search boxes, shift of consumer internet traffic to mobile devices (which increases reliance on search over direct navigation & apps replace some segment of direct navigation), increased smart pricing, lower revenue sharing percentages, and Yahoo! no longer being able to offer a competitive bid against Google.

When Yahoo! shifted their search ads to Microsoft, Microsoft allowed advertisers to opt out of the partner network. Microsoft also clamped down on some of the lower quality traffic sources with smart pricing, which hit some of the arbitrage businesses hard & even forced Yahoo! to seek refunds from some of their partners for delivering low quality traffic.

Shared Scale to Compete

Microsoft launched their own algorithmic search results on Live Search & their own Microsoft adCenter search ads. Microsoft continued to lose share in search at least until they gave their search engine a memorable name in Bing. The Yahoo! Bing ad network seemed to be gaining momentum when Yahoo! signed a deal with Mozilla to become the default search provider for Firefox, but it appears Yahoo! overpaid for the deal as Yahoo! search revenues ex-TAC were off $60 million YoY in the most recent quarter.

In spite of using an ad-heavy search interface Yahoo! has not grown search ad revenues as quickly as the search market has grown. Yahoo! has continually lost marketshare for years (up until the Mozilla Firefox deal). And even as Microsoft has followed Google in broadened their ad matching, a lot of the other "search" traffic partners Yahoo! once relied on to make their numbers are no longer in the marketplace to augment their data.

The Bing / Yahoo! network search traffic is now much cleaner than the Yahoo! "search" traffic quality of many years ago, but Yahoo! hasn't replaced some of the old search partners which have died off.

Shared Scale No Longer Important?

Yahoo! increasing the share of their ad clicks which are powered by Gemini lowers the network efficiency of the Yahoo!/Bing ad network. All the talk of "synergy" driving value sort of goes up in smoke when Yahoo! shifts a significant share of their ad clicks away from the original network.

Yahoo! announced a new search deal with Google. Here's the Tweet version...

...the underlying ethos...

If you love something, set it free; if it comes backs it’s yours, if it doesn’t, it never was.”

...and the long version...

On October 19, 2015, Yahoo! Inc., a Delaware corporation ("Yahoo"), and Google Inc., a Delaware corporation ("Google"), entered into a Google Services Agreement (the "Services Agreement"). The Services Agreement is effective as of October 1, 2015 and expires on December 31, 2018. Pursuant to the Services Agreement, Google will provide Yahoo with search advertisements through Google's AdSense for Search service ("AFS"), web algorithmic search services through Google's Websearch Service, and image search services. The results provided by Google for these services will be available to Yahoo for display on both desktop and mobile platforms. Yahoo may use Google's services on Yahoo's owned and operated properties ("Yahoo Properties") and on certain syndication partner properties ("Affiliate Sites") in the United States (U.S.), Canada, Hong Kong, Taiwan, Singapore, Thailand, Vietnam, Philippines, Indonesia, Malaysia, India, Middle East, Africa, Mexico, Argentina, Brazil, Colombia, Chile, Venezuela, Peru, Australia and New Zealand.

Under the Services Agreement, Yahoo has discretion to select which search queries to send to Google and is not obligated to send any minimum number of search queries. The Services Agreement is non-exclusive and expressly permits Yahoo to use any other search advertising services, including its own service, the services of Microsoft Corporation or other third parties.

Google will pay Yahoo a percentage of the gross revenues from AFS ads displayed on Yahoo Properties or Affiliate Sites. The percentage will vary depending on whether the ads are displayed on U.S. desktop sites, non-U.S. desktop sites or on the tablet or mobile phone versions of the Yahoo Properties or its Affiliate Sites. Yahoo will pay Google fees for requests for image search results or web algorithmic search results.

Either party may terminate the Services Agreement (1) upon a material breach subject to certain limitations; (2) in the event of a change in control (as defined in the Services Agreement); (3) after first discussing with the other party in good faith its concerns and potential alternatives to termination (a) in its entirety or in the U.S. only, if it reasonably anticipates litigation or a regulatory proceeding brought by any U.S. federal or state agency to enjoin the parties from consummating, implementing or otherwise performing the Services Agreement, (b) in part, in a country other than the U.S., if either party reasonably anticipates litigation or a regulatory proceeding or reasonably anticipates that the continued performance under the Services Agreement in such country would have a material adverse impact on any ongoing antitrust proceeding in such country, (c) in its entirety if either party reasonably anticipates a filing by the European Commission to enjoin it from performing the Services Agreement or that continued performance of the Services Agreement would have a material adverse impact on any ongoing antitrust proceeding involving either party in Europe or India, or (d) in its entirety, on 60 days notice if the other party's exercise of these termination rights in this clause (3) has collectively and materially diminished the economic value of the Services Agreement. Each party agrees to defend or settle any lawsuits or similar actions related to the Services Agreement unless doing so is not commercially reasonable (taking all factors into account, including without limitation effects on a party's brand or business outside of the scope of the Services Agreement).

In addition, Google may suspend Yahoo's use of services upon certain events and may terminate the Services Agreement if such events are not cured. Yahoo may terminate the Services Agreement if Google breaches certain service level and server latency specified in the Services Agreement.

In connection with the Services Agreement, Yahoo and Google have agreed to certain procedures with the Antitrust Division of the United States Department of Justice (the "DOJ") to facilitate review of the Services Agreement by the DOJ, including delaying the implementation of the Services Agreement in the U.S. in order to provide the DOJ with a reasonable period of review.

Where Are We Headed?

Danny Sullivan mentioned the 51% of search share Yahoo! is required to deliver to Bing applies only to desktop traffic & Yahoo! has no such limit on mobile searches. In theory this could mean Yahoo! could quickly become a Google shop, with Microsoft as a backfill partner.

When asked about the future of Gemini on today's investor conference call Marissa Mayer stated she expected Gemini to continue scaling more on mobile. She also stated she felt the Google deal would help Yahoo! refine their ad mix & give them additional opportunities in international markets. Yahoo! is increasingly reliant on the US & is unable to bid to win marketshare in foreign markets.

(Myopic) Learning Systems

Marissa Mayer sounded both insightful and myopic on today's conference call. She mentioned how as they scale up Gemini the cost of that is reflected in foregone revenues from optimizing their learning systems and improving their ad relevancy. On its face, that sort of comment sounds totally reasonable.

An unsophisticated or utterly ignorant market participant might even cheer it on, without realizing the additional complexity, management cost & risk they are promoting.

Where the myopic quick win view falls flat is on the other side of the market.

Sure a large web platform can use big data to optimize their performance and squeeze out additional pennies of yield, but for an advertiser these blended networks can be a real struggle. How do they budget for any given network when a single company is arbitrarily mixing between 3 parallel networks? A small shift in Google AdWords ad spend might not be hard to manage, but what happens if an advertiser suddenly gets a bunch of [trending topic] search ad clicks? Or maybe they get a huge slug of mobile clicks which don't work very well for their business. Do they disable the associated keyword in Yahoo! Gemini? Or Bing Ads? Or Google AdWords? All 3?'

Do they find that when they pause their ads in one network that quickly leads to the second (or third) network quickly carrying their ads across?

Even if you can track and manage it on a granular basis, the additional management time is non-trivial. One of the fundamental keys to a solid online advertising strategy is to have granular control so you can quickly alter distribution. But if you turn your ads off in one network only to find that leads your ads from the second network to get carried across that creates a bit of chaos. The more networks there are in parallel that bleed together the blurrier things get.

This sort of "overlap = bad" mindset is precisely why search engines suggest creating tight ad campaigns and ad groups. But you lose that control when things arbitrarily shift about.

To appreciate how expensive those sorts of costs can be, consider what has happened with programmatic ads:

Platforms that facilitate automated sales for media companies typically take 10% to 20% of the revenue that passes through their hands, according to the IAB report. Networks that service programmatic buys typically mark up inventory, citing the value that they add, by 30% to 50%. And then there are the essential data-management platforms, which take 10% to 15% of a buy, industry executives said.

If you are managing a client budget for paid search, how do you determine a pre-approved budget for each network when the traffic mix & quality might rapidly oscillate across the networks?

Don't take my word for it though, read the Yahoo! Ads Twitter account

When Yahoo! tries to manage their yield they will not only be choosing among 3 parallel networks on their end, but they will also have individual advertisers making a wide variety of changes on the other end. And some of those advertisers will not only be influenced by the ad networks, but also the organic rankings which come with the ads.

If one search engine is ranking you well in the organic search results for an important keyword and another is not, then you should bid more aggressively on your ads on the search engine which is ranking your site, because by voting with your budget you may well be voting on which underlying relevancy algorithm is chosen to deliver the associated organic search results accompanying the ads.

That last point was important & I haven't seen it mentioned anywhere yet, so it is worth repeating: your PPC ad bids may determine which search relevancy algorithm drives Yahoo! Search organic results.

Time to Quit Digging & Drop The Shovel

The other (BIG) issue is that as they give Google more search marketshare they give Google more granular data, which in turn means they

  • make buying on their own network less worthy of the management cost & complexity
  • make Google more of a "must buy"
  • will never close the monetization gap with Google

Even today Google announced a new tool for offering advertisers granular localized search data. Search partners won't directly benefit from those tools.

The old problem with Yahoo! was they were heavily reliant on search partners who drove down the traffic value. The future problem may well be if the marginally profitable Bing leaves the search market, Google will drive down the amount of revenue they share with Yahoo!.

If the Yahoo! Google search deal gets approved, Bing might shift back to losing money unless Microsoft buys Yahoo! after the Alibaba share spin out.

Ever track how Google's TAC has shifted over the past decade?

It has only been a decade so far, but MAYBE THIS TIME IS DIFFERENT.

Virtual Real Estate Virtually Disappears

Back in 2009 Google executives were scared of not being able to retain talent with stock options after Google's stock price cratered with the rest of the market & Google's ad revenue growth rate slid to zero. That led them to reprice employee stock options. That is as close as Google has come to a "near death" experience since their IPO. They've consistently grown & become more dominant.

In November of 2009 I cringed when I saw the future of SEO in Google SERPs where the organic results were outright displaced & even some of the featured map listings had their phone numbers removed.

Investing in Search

In 2012 a Googler named Jon Rockway was more candid than Googlers are typically known for being: "SEO isn't good for users or the Internet at large. ... It's a bug that you could rank highly in Google without buying ads, and Google is trying to fix the bug."

It isn't surprising Google greatly devalued keyword domain names & hit sites like eHow hard. And it isn't surprising Demand Media is laying off staff and is rumored to be exploring selling their sites. If deleting millions of articles from eHow doesn't drive a recovery, how much money can they lose on the rehab project before they should just let it go?

Breaking spirits works!

"If you want to stop spam, the most straight forward way to do it is to deny people money because they care about the money and that should be their end goal. But if you really want to stop spam, it is a little bit mean, but what you want to do, is break their spirits." - Matt Cutts

Through a constant ex-post-facto redefinition of "what is spam" to include most anything which is profitable, predictable & accessible, Google engineers work hard to "deny people money."

Over time SEO became harder & less predictable. The exception being Google investments like Thumbtack, in which case other's headwind became your tailwind & a list of techniques declared off limits became a strategy guidebook.

Communications got worse, Google stopped even pretending to help the ecosystem, and they went so far as claiming that even asking for a link was spam. All the while, as they were curbing third party investment into the ecosystem ("deny them money"), they work on PR for their various investments & renamed the company from Google to Alphabet so they can expand their scope of investments.

"We also like that it means alpha‑bet (Alpha is investment return above benchmark), which we strive for!" - Larry Page

From Do/Know/Go to Scrape/Displace/Monetize

It takes a lot of effort & most people are probably too lazy to do it, but if you look at the arch of Google's patents related to search quality, many of the early ones revolved around links. Then many focused on engagement related signals. Chrome & Android changed the pool of signals Google had access to. Things like Project Fi, Gogle Fiber, Nest, and Google's new OnHub router give them more of that juicy user data. Many of their recently approved patents revolve around expanding the knowledge graph so that they may outright displace the idea of having a neutral third party result set for an increasing share of the overall search pie.

Searchers can instead get bits of "knowledge" dressed in various flavors of ads.

This sort of displacement is having a significant impact on a variety of sites. But for most it is a slow bleed rather than an overnight sudden shift. In that sort of environment, even volunteer run sites will eventually atrophy. They will have fewer new users, and as some of the senior people leave, eventually fewer will rise through the ranks. Or perhaps a greater share of the overall ranks will be driven by money.

Jimmy Wales stated: “It is also false that ‘Wikipedia thrives on clicks,’ at least as compared to ad-revenue driven sites… The relationship between ‘clicks’ and the things we care about: community health and encyclopedia quality is not nothing, but it’s not as direct as some think.”

Most likely the relationship *is* quite direct, but there is a lagging impact. Today's major editors didn't join the site yesterday & take time to rise through the ranks.

As the big sites become more closed off the independent voices are pushed aside or outright disappear.

If Google works hard enough at prioritizing "deny people money" as a primary goal, then they will eventually get an index quality that reflects that lack of payment. Plenty of good looking & well-formatted content, but a mix of content which:

  • is monetized indirectly & in ways which are not clearly disclosed
  • has interstitial ads and slideshows where the ads look like the "next" button & the "next" button is colored the same color as the site's background
  • is done as "me too" micro-reporting with no incremental analysis
  • is algorithmically generated

Celebrating Search "Innovation"

There has been a general pattern in search innovation. Google introduces a new feature, pitches it as being the next big thing, gets people to adopt it, collects data on the impact of the feature, clamps down on selectively allowing it, perhaps removes the feature outright from organic search results, permanently adds the feature to their ad units.

This sort of pattern has happened so many times it is hard to count.

Google puts faces in search results for authorship & to promote Google+, Google realizes Google+ is a total loser & disconnects it, new ad units for local services show faces in the search results. What was distracting noise was removed, then it was re-introduced as part of an ad unit.

The same sort of deal exists elsewhere. Google acquires YouTube, launches universal search, offers video snippets, increases size of video snippets. Then video snippets get removed from most listings "because noise." YouTube gets enlarged video snippets. And, after removing the "noise" of video stills in the search results Google is exploring testing video ads in the search results.

Some sites which bundle software got penalized in organic search and are not even allowed to buy AdWords ads. At an extreme degree, sites which bundled no software, but simply didn't link to an End User Agreement (EULA) from the download page were penalized. Which leads to uncomfortable conversations like this one:

Google Support: I looked through this, and it seemed that one of the issues was a lack of an End User Agreement (EULA)

Simtec: An EULA is displayed by the setup program before installing starts. Also, the end user license agreements are linked to from here http://www.httpwatch.com/buy/orderingfaq.aspx#licensetypes

Google Support: Hmm, They do want it on the download page itself

Simtec: How come there isn’t one here? google.co.uk/chrome/browser/desktop/

Google Support: LOL

Simtec: No really?

Google Support: That’s a great question

Of course, it goes without saying that much of the Google Chrome install base came from negative option software bundling on Adobe Flash security updates.

Google claimed helpful hotel affiliate sites should be rated as spam, then they put their own affiliate ads in hotel search results & even recommended hotel searches in the knowledge graph on city name searches.

Google created a penalty for sites which have an ad heavy interface. Many of Google's search results are nothing but ads for the entire first screen.

Google search engineers have recently started complaining about interstitial ads & suggested they might create a "relevancy" signal based on users not liking those. At the same time, an increasing number of YouTube videos have unskippable pre-roll ads. And the volume of YouTube ad views is so large that it is heavily driving down Google's aggregate ad click price. On top of this, Google also offers a survey tool which publishers can lock content behind & requires users to answer a question before they can see the full article they just saw ranking in the search results.

"Everything is possible, but nothing is real." - Living Colour

Blue Ocean Opportunity

Amid the growing ecosystem instability & increasing hypocrisy, there have perhaps been only a couple "blue ocean" areas left in organic search: local search & brand.

And it appears Google might be well on their way in trying to take those away.

For years brand has been the solution to almost any SEO problem.

But Google has been increasing the cost of owning a brand. They are testing other ad formats to drive branded search clicks through more expensive ad formats like PLAs & they have been drastically increasing brand CPCs on text ads. And while that second topic has recently gained broader awareness, it has been a trend for years now: "Over the last 12 months, Brand CPCs on Google have increased 80%" - George Michie, July 30, 2013.

There are other subtle ways Google has attacked brand, including:

  • penalties on many of the affiliates of those brands
  • launching their own vertical search ad offerings in key big-money verticals
  • investing billions in "disruptive" start ups which are exempt from the algorithmic risks other players must deal with
  • allowing competitors to target competing brands not only within the search results, but also as custom affinity audiences
  • linking to competing businesses in the knowledge graph

Google has recently dialed up monetization of local search quite aggressively as well. I've long highlighted how mobile search results are ad heavy & have grown increasingly so over time. Google has recently announced call only ad formats, a buy button for mobile ads, local service provider ads, appointment scheduling in the SERPs, direct hotel booking, etc.

And, in addition to all the above new ad formats, recently it was noticed Google is now showing 3 ads on mobile devices even for terms without much commercial intent, like [craft beer].

Now that the mobile search interface is literally nothing but ads above the fold, early data shows a significant increase in mobile ad clicks. Of course it doesn't matter if there are 2 or 3 ads, if Google shows ad extensions on SERPs with only 2 ads to ensure they drive the organic results "out of sight, out of mind."

Earlier this month it was also noticed Google replaced 7-pack local results with 3-pack local results for many more search queries, even on desktop search results. On some of these results they only show a call button, on others they show links to sites. It is a stark contrast to the vast array of arbitrary (and even automated) ad extensions in AdWords.

Why would they determine users want to see links to the websites & the phone numbers, then decide overnight users don't want those?

Why would Google determine for many years that 7 is a good number of results to show, and then overnight shift to showing 3?

If Google listed 7 ads in a row people might notice the absurdity of it and complain. But if Google only shows 3 results, then they can quickly convert it into an ad unit with little blowback.

You don't have to be a country music fan to know the Austin SEO limits in a search result where the local results are now payola.

Try not to hurt your back while looking down for the organic search results!

Here are two tips to ensure any SEO success isn't ethereal: don't be nearby, and don't be a business. :D

Yahoo! Search Testing Google Search Results

Search PandaMonium

A couple days ago Microsoft announced a deal with AOL to have AOL sell Microsoft display ads & for Bing to power AOL's organic search results and paid search ads for a decade starting in January.

The search landscape is still undergoing changes.

I am uncertain to what degree they are testing search results from Google, but on some web browsers I am seeing Yahoo! organics and ads powered by Bing & in other browsers I am seeing Yahoo! organics and ads powered by Google. Here are a couple screenshots.

Bing Version

Google Version

Comparing The SERPs

Notable differences between the versions:

search provider Bing Google
top ad color purple blue
top ad favicon yes no
clickable ad area all headline
ad label right of each ad near URL once in gray above all ads
ad URL redirect r.msn.com google.com
ad units above organics 5 4
ad sitelinks many fewer
ad star rating color blue yellow
Yahoo! verticals like Tumblr & Answers mixed into organic results not mixed in
footer "powered by Bing" message shown missing

When the Google ads run on the Yahoo! SERPs for many keywords I am seeing many of the search arbitrage players in the top ads. Typically these ads are more commonly relegated to Google.com's right rail ad positions.

The Google Yahoo! Search Backstory

Back in 2008 when Yahoo! was fighting to not get acquired they signed an ad agreement with Google, but it was blocked by the DOJ due to antitrust concerns. Unless Google loses Apple as a search partner, they are arguably more dominant today in general web search than they were back in 2008. Some have argued apps drastically change the way people search, but Google has went to great lengths to depreciate the roll of apps & suck people back into their search ecosystem with features baked into Google Now on tap & in-app keyword highlighting that can push a user from an app into a Google search result.

In Q4 last year Yahoo! replaced Google as the default search provider in Firefox in the United States.

And Yahoo! recently signed a deal with Oracle to bundle default Yahoo! Search settings on Java updates. Almost all the Bing network gains of late have been driven by Yahoo!.

A little over a year ago Yahoo! launched Gemini to begin rebuilding their own search ad network, starting with mobile. In their Q1 report, RKG stated "Among advertisers adopting Gemini, 36% of combined Bing and Yahoo mobile traffic was served by Yahoo in March 2015."

When Yahoo! recently renewed their search deal with Microsoft, Yahoo! was once again allowed to sell their own desktop search ads & they are only required to give 51% of the search volume to Bing. There has been significant speculation as to what Yahoo! would do with the carve out. Would they build their own search technology? Would they outsource to Google to increase search ad revenues? It appears they are doing a bit of everything - some Bing ads, some Yahoo! ads, some Google ads.

Bing reports the relative share of Yahoo! search ad volume they deliver on a rolling basis: "data covers all device-types. The relative volume (y-axis) is an index based on average traffic in April, therefore it is possible for the volume to go above 1.0. The chart is updated on a weekly basis."

If Yahoo! gives Google significant share it could create issues where users who switch between the different algorithms might get frustrated by the results being significantly different. Or if users don't care it could prove general web search is so highly commoditized the average searcher is totally unaware of the changes. The latter is more likely, given most searchers can't even distinguish between search ads and organic search results.

The FTC was lenient toward Google in spite of Google's clearly articulated intent to abuse their dominant market position. Google has until August 17th to respond to EU antitrust charges. I am a bit surprised Google would be willing to run this type of test while still undergoing antitrust scrutiny in Europe.

Choosing to Choose Choice

When Mozilla signed the deal with Yahoo! & dumped Google they pushed it as "promoting choice."

A cynic might question how much actual choice there is if on many searches the logo is different but the underlying ads & organic results are powered by Google, and an ex-Google executive runs Yahoo!.

"Any customer can have a car painted any colour that he wants so long as it is black." - Henry Ford

Web Design Resources for Non-Designers

Most of you are too busy monitoring Google's latest algorithm updates, examining web analytics, and building links and content to stay up to date on the design world.

Usually, creative people who excel at design aren't very good at the left-brain thinking required to succeed in the highly-technical search engine optimization industry. Likewise, very few people with the analytical mindset required for search engine optimization would do well in the free-spirited design industry.

Unfortunately, in the real world, you're often expected to do exactly that. And while most people understand that it would be ludicrous to expect their doctor to also troubleshoot their plumbing, they don't seem to understand why they shouldn't expect the person responsible for their SEO to also handle their design needs from time to time.

So you're often forced to design things for your clients from time to time. Or sometimes, you just need to whip up something for yourself instead of trying to find someone who can deliver what you need on Fiverr.

Since you probably won't start sporting a black turtleneck and talking about crop marks, press checks, or CMYK colors anytime soon, it seems silly to shell out thousands of dollars on software you'll only use occasionally, so I've compiled a list of design resources for non-designers.

The resources in this list are every bit as powerful as any of the professional-grade software, but they are free. (Some do offer premium versions with more options.) The only downside is that it might be a little bit tougher to find tutorials for some of these programs compared to the industry standard software like Adobe Photoshop or Illustrator.

Image editing

Image Editing.

We all need to edit and create images from time to time, but if you only do it occasionally, software like Adobe Photoshop and Illustrator works out to be pretty expensive. Fortunately, there are several feature-rich image editing programs available.

  • Gimp - Anything you can do with Photoshop can be done with Gimp, and it runs on Windows, Mac, and Linux. The learning curve can be steep, but it's worth the time.
  • Pixlr - If you're used to Photoshop, this program has a very similar interface, and it even opens native .psd files with the original layers intact.
  • Canva - The drag-and-drop interface of this web-based design program make graphic design quick and simple, plus it comes with a library of over one million professional stock images.
  • Inkscape - Easily create illustrations, logos, technical drawings, and vector images with this free alternative to Illustrator.
  • SVG Editor - If you're obsessed about website speed, you probably love SVGs (scalable vector graphics) and this handy tool from Google make it easy to create and edit them.

3D

OK, so you're not going to compete with Pixar anytime soon, but 3D capabilities do come in handy for designing mockups of books and DVDs, creating characters, and even complete photorealistic animations.

  • Online 3d Package - This tool lets you quickly and easily create photorealistic mockups of books, boxes, DVDs, and CDs.
  • Blender - If you occasionally need to create 3D renderings but can't justify spending big bucks for professional-grade software that you'll only use a few times, Blender is the perfect (and free) alternative.

Web design

Web Design.

Designing a website requires a blend of creative and technical skills. Fortunately, there are plenty of tools available to efficiently complete both. From the pretty parts, to the nuts and bolts, to the little details, here is everything you'll need:

Palette generator - Upload an image and this tool will generate the perfect color palette to compliment it that you can download as a CSS file.

Subtle Paterns - Creating seamless backgrounds can be a pain, so instead of starting from scratch, just download from over 400 high-quality seamless background images, including textures and patterns.

Web page editors

Whether you're building a website from scratch with a WYSIWYG editor or fine-tuning the code on an existing website with an HTML editor, web design software will probably get a lot of use in your hands. If you have the technical chops to hand code your websites, that's ideal, but if not, or if you just don't want to, here are several options:

  • Kompozer - With a WYSIWYG editor in one tab and raw HTML in the other, on-the-fly editing with built-in FTP, Kompozer will make creating and editing web page a breeze.
  • Google Webdesigner - Build HTML5-based designs and motion graphics that can run on any device without writing any code! (If you want to get your hands dirty, you can edit all HTML and CSS by hand.
  • Expression Web - Microsoft offers another free web page editor which has made significant improvements since that abomination called Frontpage.

Favicon Generator - A truly polished website needs consistent branding throughout, and that means all the little details, including a favicon—that tiny little image that sits in the tab or bookmarks. Just upload an image file, such as your logo, and this handy tool will spit out the .ico files you need.

Web Developer Toolbar - This browser toolbar is available for Firefox and Chrome, and helps you troubleshoot your website and even test it at various screen sizes.

Infographics

Infographics.

Infographics are still an effective method to earn social shares and links, and they are a great way to present a lot of data-rich information, but they can be a pain to create. Here are several tools to simplify the process that might even be better (and easier) than traditional design software.

  • Infogram - Build beautiful data-driven infographics in just three steps with this free tool.
  • Piktochart - With a simple point and click editor and over 4,000 graphics, icons, and template files, Piktochart makes it easy to create infographics that look exactly the way you want.
  • Easel.ly - Loaded with tons of creative templates and an east-to-use interface, this is another powerful tool to create your own stunning infographics.
  • Venngage - This drag and drop interface provides all the charts, maps, icons and templates you'll need to design attention-grabbing infographics.
  • Vizualize.me - Turn your boring resume into a unique visual expression of your skills and experience to stand out from the crowd.

If you are in a saturated market or have a great idea you are certain will be a success then it may make sense to splash out for a custom designed graphic, but in less competitive market some of the above quick-n-easy tools can still be remarkably effective.

Data visualization

Google Charts is a great way to create all sorts of charts, and the best part is that you can create them on the fly by passing variables in the URL.

Typography

Typography.

Today you have plenty of options when it comes to font choices, so please stop using Arial, and for the love of all that is good, never use Comic Sans or I will hunt you down. You can choose from thousands of free fonts, so it's easy to pick one that fits your project perfectly.

  • Typegenius - Choosing the perfect font combo can be tough, but Typegenious makes it easy. Just pick a starter font from the drop down list and the site will recommend fonts that pair well with it.
  • Google Fonts - I recommend embedding Google fonts instead hosting them on your own server because they load more quickly and there is a chance they're already cached on visitors' computers.
  • Font Awesome - This is an awesome (hence the name) way to add all sorts of scalable icons without a load of extra http requests. Simply load one font for access to 519 icons that colored, scaled, and styled with CSS.
  • DaFont - Download and instal these fonts (.ttf or .otf formats) for designing documents or images on your computer.
  • What the Font - If you've ever experienced the rage-inducing task of figuring out what font was used when your client only has a 72dpi jpg and no idea how to track down their previous designer, then this is the tool for you. Just upload your image and it goes to work figuring what font it is.

Social media

Social Media.

Social media can multiply your website's exposure exponentially, but it takes a lot of work. From branding profiles on each network to crafting engaging visual content your fans will share, you'll have to create a lot of graphics to feed the beast. Doing that manually, the old-fashioned way is tedious and slow, so I recommend these tools to speed up your workflow.

Easy Cover Maker - Stop wasting time trying to position your cover and profile photo for your Facebook and Google+ page. This tool lets you drag everything into position in one handy interactive window, then download the image files.

Quote creators

  • Quotes Cover - Just select a quote or enter your own text, apply various effects for your own unique style, and download eye catching pictures perfect for social media. It even creates the perfect dimensions based on how you intend to use it.
  • Chisel - This tool has the most user-friendly interface and tons of great images and fonts to create the exact message you want to share.
  • Recite This - There are plenty of images and fonts available, but the downside is you have to scroll through images one at a time, and fonts are selected randomly.

Jing - From the makers of Camtasia, this free program gives you the ability to capture images or video (up to 5 minutes long) of your computer screen, then share it with the click of a button.

Social Kit - Create cover images, profile pictures, and ad banners for Facebook, Twitter, Google+, and YouTube with this free, up-to-date Photoshop plugin.

Social media image size guide - The folks over at Sprout Social created (and maintain) this handy and comprehensive Google doc listing the image sizes for all major social media networks, and since it's a shared document, you can have Google notify you anytime it's updated!

Meme creators

Instead of wasting time searching for the perfect meme, why not just create your own?

Stock photos

Powerful photos can mean the difference between a dry post that visitors ignore and one that entices them to read more. The good news is you don't have to take your own spend a fortune on stock photos because there are several free and low-cost options available.

  • Unsplash - These are not your typical cheesy stock photos; they lean more towards the artistic side. New photos are uploaded every day and they're all 100% free.
  • StockVault - With over 54 thousand free images available, both artistic and corporate-style, you should be able to find the perfect photo for just about any project.
  • Dreamstime & iStockPhoto - Both of these sites give you the option of a subscription model or a pay-as-you-go credits. Many images on one are available on the other, but I've found great images that were only on one of the two sites, so it's worthwhile to check both.

Inspiration

Even the best designers hit a wall, creatively speaking, so it helps to look for inspiration. These sites curate the best designs around and are updated regularly, so you'll find plenty of fresh ideas for your project.

Tutorials

Since you're days are filled with keyword research, content development, link building, and other SEO-related tasks, you probably don't have time to stay up-to-date on the latest design trends and techniques. No worries—with these websites, you'll be able to find a tutorial to walk you through just about any design challenge.

  • CSS-Tricks - Whenever I have a CSS question, I always slap “css tricks” on the end of my search because Chris Coyer has the most detailed, yet easy-to-understand tutorials on damn near every scenario you could imagine.
  • Tuts+ - Learn everything about graphic design, web design, programming, and more with a growing library of articles and tutorials.
  • Smashing Magazine - This is probably one of the most comprehensive web design resources you'll find anywhere, going wide and deep on every aspect of web design.

About the Author

Jeremy Knauff is the founder of Spartan Media, a proud father, husband, and US Marine Corps veteran. He has spent over 15 years helping small business up to Fortune 500 companies make their mark online, and now he's busy building his own media empire. You can follow Spartan Media on Twitter and Facebook.

But First, A Word From Our Sponsors...

Yesterday Google shared they see greater mobile than desktop search volumes in 10 countries including Japan and the United States.

3 years ago RKG shared CTR data which highlighted how mobile search ads were getting over double the CTR as desktop search ads.

The basic formula: less screen real estate = higher proportion of user clicks on ads.

Google made a big deal of their "mobilepocalypse" update to scare other webmasters into making their sites mobile friendly. Part of the goal of making sites "mobile friendly" is to ensure it isn't too ad dense (which in turn lowers accidental ad clicks & lowers monetization). Not only does Google have an "ad heavy" relevancy algorithm which demotes ad heavy sites, but they also explicitly claim even using a moderate sized ad unit on mobile devices above the fold is against their policy guidelines:

Is placing a 300x250 ad unit on top of a high-end mobile optimized page considered a policy violation?

Yes, this would be considered a policy violation as it falls under our ad placement policies for site layout that pushes content below the fold. This implementation would take up too much space on a mobile optimized site's first view screen with ads and provides a poor experience to users. Always try to think of the users experience on your site - this will help ensure that users continue to visit.

So if you make your site mobile friendly you can't run Google ads above the fold unless you are a large enough publisher that the guidelines don't actually matter.

Update: Looks like Google updated the (utterly absurd) above policy on May 2, 2017 to now allow ads above the fold on mobile.

If you spend the extra money to make your site mobile friendly, you then must also go out of your way to lower your income.

What is the goal of the above sort of scenario? Defunding content publishers to ensure most the ad revenues flow to Google.

If you think otherwise, consider the layout of the auto ads & hotel ads Google announced yesterday. Top of the search results, larger than 300x250.

If you do X, you are a spammer. If Google does X, they are improving the user experience.

The above sort of contrast is something noticed by non-SEOs. The WSJ article about Google's new ad units had a user response stating:

With this strategy, Google has made the mistake of an egregious use of precious mobile screen space in search results. This entails much extra fingering/scrolling to acquire useful results and bypass often not-needed coincident advertising. Perhaps a moneymaker by brute force; not a good idea for utility’s sake.

That content displacement with ads is both against Google's guidelines and algorithmically targeted for demotion - unless you are Google.

How is that working for Google partners?

According to eMarketer, by 2019 mobile will account for 72% of US digital ad spend. Almost all that growth in ad spend flows into the big ad networks while other online publishers struggle to monetize their audiences:

Facebook and Google accounted for a majority of mobile ad market growth worldwide last year. Combined, the two companies saw net mobile ad revenues increase by $6.92 billion, claiming 75.2% of the additional $9.2 billion that went toward mobile in 2013.

Back to the data RKG shared. Mobile is where the growth is...

...and the smaller the screen size the more partners are squeezed out of the ecosystem...

The high-intent, high-value search traffic is siphoned off by ads.

What does that leave for the rest of the ecosystem?

It is hard to build a sustainable business when you have to rely almost exclusively on traffic with no commercial intent.

One of the few areas that works well is perhaps with evergreen content which has little cost of maintenance, but even many of those pockets of opportunity are disappearing due to the combination of the Panda algorithm and Google's scrape-n-displace knowledge graph.

Even companies with direct ad sales teams struggle to monetize mobile:

At The New York Times, for instance, more than half its digital audience comes from mobile, yet just 10% of its digital-ad revenue is attributed to these devices.

Other news websites also get the majority of their search traffic from mobile.

Why do news sites get so much mobile search traffic? A lot of it is navigational & beyond that most of it is on informational search queries which are hard to monetize (and thus have few search ads) and hard to structure into the knowledge graph (because they are about news items which only just recently happened).

If you look at the organic search traffic breakdown in your analytics account & you run a site which isn't a news site you will likely see a far lower share of search traffic from mobile. Websites outside of the news vertical typically see far less mobile traffic. This goes back to Google dominating the mobile search interface with ads.

Mobile search ecosystem breakdown

  • traffic with commercial intent = heavy ads
  • limited commercial intent but easy answer = knowledge graph
  • limited commercial intent & hard to answer = traffic flows to news sites

Not only is Google monetizing a far higher share of mobile search traffic, but they are also aggressively increasing minimum bids.

As Google continues to gut the broader web publishing ecosystem, they can afford to throw a few hundred million in "innovation" bribery kickback slush funds. That will earn them some praise in the short term with some of the bigger publishers, but it will make those publishers more beholden to Google. And it is even worse for smaller publishers. It means the smaller publishers are not only competing against algorithmic brand bias, confirmation bias expressed in the remote rater documents, & wholesale result set displacement, but some of their bigger publishing competitors are also subsidized directly by Google.

Ignore the broader ecosystem shifts.

Ignore the hypocrisy.

Focus on the user.

Until you are eating cat food.

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