You Must Disclose, or Else...
Matt Cutts has long stated that machine-readable disclosure of paid links is required to be within Google's guidelines.
The idea behind such Cassandra calls is that the web should be graded based on merit, rather than who has the largest ad budget. The Google founders harped on this in their early research:
we expect that advertising funded search engines will be inherently biased towards the advertisers and away from the needs of the consumers.
Google is not the only search engine in town, and they have been less forthcoming with their own behavior than what they demand of others.
Ads as Content
Both SugarRae and I have highlighted how Google's investment in VigLink is (at best) sketchy given Google's approach to non-Google affiliate links. And now Google's "ads as content" program has spread to Youtube, where Google counts ad views as video views. The problem with this is that any external search service has no way to separate out which views were organic & which were driven by paid exposure.
(Google has access to that data since they charge the advertisers for each view, but there is no way for any external party to access that data, or know how Google is using it other than what Google states publicly).
That is the *exact* type of pollution Google claimed would undermine the web. But it is only bad when someone is doing it to Google (rather than the other way around).
Youtube = Wikipedia + Wikipedia + Wikipedia
As independent webmasters it can be annoying seeing Wikipedia rank for everything under the sun, but after Google's "universal search" push Youtube is far more dominant than Wikipedia. When the Panda update happened Youtube was around 4% of Google's downstream traffic. Youtube has grown their Google-referred traffic by about 4% a month since Panda, up until last month, in which it grew by 18.3% according to Compete.com. That now puts Youtube at over 5% of Google's downstream traffic (over 3x as much traffic as Wikipedia gets from Google)!
1 in 20 downstream clicks is landing onto a nepotistic property where Google has blurred the lines between ads and content, making it essentially impossible for competing search services to score relevancy (in addition to making features inaccessible, the data that is accessible is polluted). It is unsurprising that Youtube is a significant anti-trust issue:
Google acquired YouTube—and since then it has put in place a growing number of technical measures to restrict competing search engines from properly accessing it for their search results. Without proper access to YouTube, Bing and other search engines cannot stand with Google on an equal footing in returning search results with links to YouTube videos and that, of course, drives more users away from competitors and to Google.
Google promotes "openness" wherever they are weak, and then they erect proprietary barriers to erode competitive threat wherever they are strong.
At some point it is hard to operate as a monopoly without being blindingly hypocritical. And this is at the core of why Google's leading engineers feel the need to write guest articles in Politico & Eric Schmidt is working directly with governments to prevent regulatory action. They understand that if they curry favor they can better limit the damage and have more control of what sacrificial anodes die in the eventual anti-trust proceedings.
Is Google Lying Again?
As a marketer & a publisher you can go bankrupt before governments react to monopolies. Thus you need to decide what risks are worthwhile & what suggestions carry any weight.
Here is the litmus test for "is this piece of information from Google more self-serving garbage" ... does Google apply the same principals to itself in markets it is easily winning AND markets it is losing badly?
If their suggestion doesn't apply to Google across-the-board then you can safely ignore it as more self-serving drivel from a monopolist.
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