Author Archives: ghotchkiss

SEM’s Seven Year Itch, Part One

First published January 11, 2007 in Mediapost’s Search Insider

There’s been a lot of speculation lately about the future of Matt Cutts. A few of Cutts’ posts and a recent interview have dropped the odd hint that the world of Google and the world of Mr. Cutts may not always be one and the same. While this is certainly noteworthy on many levels, it’s only one symptom of a much bigger issue, and one that will change the search landscape dramatically.

The fact is, those of us in the search space who have been doing it for a while (in my case, dabbling for 11 years, dedicated for eight now) are getting tired. We’re becoming burnt-out. As exciting as the ride has been since 2000, we’re beginning to realize that there is a life beyond search, or at least, the seat that we’re currently sitting in. There are a number of individual issues emerging that signal a significant change coming, and the time is now. We are succumbing to our own version of the 7-Year Itch.

A Case of Google-itis

First, let’s look at what will be happening with the engines themselves:

Google was recently recognized by Fortune as the best place in America to work. Tales of perks beyond the imagination of most poor working stiffs emerged from the Mountain View Shangri-La. Those of us who have visited the Google campus knew about a lot of these, but you could hear the rest of America’s jaw drop. Oh my God, they said collectively, what a place to work!

Well, yes… and no. The things that make Google great also make it a meat grinder. When you sign your life over at Google, you’re entering yourself in a sprint without a defined finish line, against thousands of other people determined and capable of getting there first. That’s okay when you’re young (as everyone at Google is), but at some point, life edges in on the dream. People get married, people have babies, parents age and require care. Somehow, a $500 subsidy for take-out food or on-site dry cleaning can’t make the realities of that life go away. There’s no rule saying you have to work zillions of hours at Google, but when everyone else is doing it, especially the two founders, are you the one that’s going to slow down? Either you keep racing, or you drop out. There’s little middle ground here.

And My Option is…?

Combine that with the fact that most of Google’s old guard are sitting on stock options that make them multimillionaires. Matt’s a wonderful guy and I’d like to count him as one of the friends I’ve made in the industry, but it’s got to be tough to motivate yourself everyday to put in the hours it takes to be Matt Cutts when there’s the substantial carrot of a very early and very lush retirement constantly hanging just above your head.

Matt’s not alone. That’s why one-third of the first 300 employees are no longer with Google. A story in the Houston Chronicle relates how 16 Google insiders cashed in more that $3.7 billion in stock last year (half of this coming from Larry and Sergey themselves), filling California’s tax coffers. And there’s more to come. By 2008, the state is counting on a cumulative $1 billion in state income tax from the sale of Google stock as the early guard cashes in. That represents 1% of the state’s entire annual general fund budget.

Changing of the Guard

Somehow, staying in the race becomes less compelling when the alternative is so damned attractive. It’s a testament to Google’s culture that more haven’t taken Door Number Two yet. But as the old guard moves on, that culture is shifting. Again, this is not unique to Google. Startups everywhere go through this, but few have been as successful or watched as closely as Google. A San Francisco Chronicle article looked at the shift of Google from a highly democratic family to a more conservative bureaucracy: “The feeling of ownership among employees, a natural when a company has 100 workers, was nearly impossible to maintain after the workforce grew into the thousands.”

Google’s not alone in this. Just a few weeks ago, I wrote about Tim Converse’s departure from Yahoo. Yahoo has seen several move on, some voluntarily, some not, due to a series of reorgs. Yahoo is a perfect case study of the tempestuous nature of the Web. Once sitting on the top of the search heap, Yahoo has felt a series of very painful bumps on the way down. It is now reinventing itself so it can turn around its market-share slide. Yahoo is a curious mix of old guard and new saviors, as its culture becomes redefined, for different but no less effective reasons than Google.

And finally, there’s Microsoft, unique amongst the three. Being late into the search game might actually benefit the monolithic giant here. Most of the recently assembled search team still feels the motivation that comes from the promise of a new endeavor. Microsoft is in the unaccustomed position of being the startup, the new kid on the block. Their legs are still fresh.

Today, I looked at the effect of the 7-Year Itch on the engines, but the impact is also affecting hundreds of search marketing companies. Stay tuned for next week!

The SEO Debate Continues

My earlier post about the future of SEO caught Jason Lee Miller’s attention over at Webpronews. So far, Jason is one of the few to grasp the Richter Scale implications of this shift in the SEM landscape. Danny Sullivan saw the danger signs some time ago. I traded a few emails with Danny on this and his response was:

“I did a lot of writing about personalized search about two years ago sounding the same alarm. Then it never really happened, the personal results that is. They’ll come, of course.”

Meanwhile, Kevin Lee continues to poke away at the SEM-SEO controversy that his partner David Pasternack started. There are those suggesting that this is an elaborate link baiting scheme on Kevin’s part. While his speculating on the future of SEO is certainly generating lots of controversy, and hence, links out there in the blogosphere, the cynics are missing the point that all those links are pointing to Kevin’s Clickz column, not his corporate online properties. No, I suspect Kevin’s motivation in this case is his self professed tendency to be a intellectual shit disturber. He likes to stir up polarized discussion, because if you know Kevin, there’s nothing he likes better than a good debate.

As you know from the previous post, I have a slightly different take (and I use the word slightly deliberately, I happen to agree with a lot of what Kevin said in his last column) on the debate than does Kevin. His point is that SEO can be brought in-house because for a lot of websites, you just have to do the basics right and they’ll get a huge lift. Couple this with the desire, expressed in the latest SEMPO survey, of a lot of companies to handle all this SEO in-house because there’s a lack of a recognized and trusted leader in the SEO Marketplace and it’s not that hard to see Kevin’s point. To be fair, Kevin also pointed out that a lot of companies want to bring their paid search in-house as well.

But here’s the thing. SEO is going to get a lot harder, not easier. And that increasing difficulty is going to be in area that today’s crop of SEO’s have next to no experience in: knowing the end user. And that get’s back to Jason’s story in Webpronews. He states:

“While focus on keywords has been the law of the searchland, SEO professionals will have to more diligently and acutely focus on the end user – every unique end user – mulling scenarios, personalities, and motivations, which makes SEO more akin to traditional marketing, where a firm grasp of psychological concepts is as necessary as the technical acuity of keyword targeting.”

Exactly, but in that paragraph lies a world of adjustment, and I’m not sure most SEO’s are up to the challenge.

Here are some things to think about:

As results become more personalized, the work ranking ceases to have meaning. Just a few months ago the question of ranking reporting came up in an analytics session I was participating in. This has been part of SEO since the beginning and has been an ongoing sore spot between the engines and the SEO community. I mentioned that ranking reporting might soon become irrelevant, expecting it to generate a bit of controversy (in that, I do share Kevin’s delight in stirring the pot sometimes). To my surprise, nobody picked up on it. Fellow SEO’s on the panel even failed to take the bait. I felt like screaming “The whole world is about to change as you know it!” but I chose instead to go to the exhibit hall for the free drink. It was the end of the day and I was tired.

SEO’s are all about controlled experimentation. We live to tally up suspected algorithmic factors and test, tweak and twiddle. We reverse engineer the algorithms. Say what you want, that’s basically what SEO is. It’s all about tactical maneuvering. I’ve been bemoaning the lack of strategic thinking, based on what users are actually doing, for years now, but the industry hasn’t changed much. To reverse engineer, you need a control to test against. You need at least one fixed target. Up to now, the universal page of results was that fixed target. How do you reverse engineer when you have nothing to set your bearings against?

As Jason so rightly points out, this new world of SEO is much more about marketing than it is a technical skill set. It’s about knowing your user intimately and where they tend to hang out, given a specific intent. It’s about staking out the most traveled intersections and gaining some presence there. It’s about knowing how they’ll use the new version of search to navigate the online landscape. And it’s about accepting, once and for all, that you really can’t control your presence on the search results page, however it appears.

And it’s here where Kevin’s view and mine coincide. In a lot of cases, it will be about doing the fundamentals right. If you have a site that has an established presence, then this is often enough. Make sure you connect the spider with the content. Make sure the content and your target customer share the same vocabulary. Make sure you’re not throwing any road blocks between your site and the search index. Do that, and accept the fact that your control pretty much ends there. That’s not to downplay the importance of this knowledge. I agree with Danny Sullivan that SEO skills are not nearly as common as David Pasternack seems to indicate. But I believe the days of the SEO hacker/hired gun are numbered. Personalized search may be what finally kills black hat SEO.

With that, organic optimization returns to its roots, and what the word organic should have meant in the first place. It’s about working with the client to help them understand how consumers use online to research and to help them turn their organization into an organic content factory. Help them use online to provide multiple and useful touchpoints for the potential consumer. Extend your presence into the well travelled online intersections. Establish best practices for SEO, and let the rest take care of itself. As Kevin rightly points out in his column:

“Alternatively, one could simply focus on producing great content and take whatever links occur naturally (the way Sergey Brin and Lawrence Page intended in the original PageRank system).”

It’s here where SEO’s have their biggest challenge. Can they transition from a technical experimenter to a trusted guide to online traffic patterns? I have my doubts. I have seen little evidence of this in the past. SEM’s tend to be further ahead in this regard, because of the targeting opportunities that the back end platforms provide. Ironically, this is where interactive and traditional agencies could regain a foothold, but in the later case at least, they’re still struggling with the whole concept of an empowered online consumer, and until this paradigm shifts for them, they have a huge blind spot when it comes to online strategy.

SEO’s have to reinvent themselves, and soon. Some of the skills will be transferrable, but many new ones have to be acquired, and these are not usually skills that are found in the same place. I expect a shakeout, and soon. A lot of SEO’s have been doing this for a long time, and they’re getting a little tired. Reinventing themselves is probably the last thing they want to do. Cashing out was probably more in their anticipated plans.

So, how soon is this going to happen. Let’s get back to Danny’s point. Personalization is nothing new, but I think 2007 is the year where it will make a noticeable difference. There are a couple of indicators of that:

Google is already experimenting with Geo-targeting results based on IP identification. Those of you in the States probably haven’t noticed, because the online world is very US-centric, but those of us who live on the outside are already dealing with the effects. In Canada, there is a significant difference in results seen in the main Google index depending on whether the query is coming from the US or Canada. It’s a constant bain of our existence, being based in Canada but working primarily with US clients. So even in North America right now, there is no such thing as a universal set of Google results.

Personalized search that users opt in for is finally gaining significant traction. All the 3 engines offer this, and often the fact that you’re signed in is completely missed by the user. As adoption of other functionality offered by the engines increases, the odds of being signed in when you launch a search rises dramatically. And for the engines, search history is enough additional information to make them confident in presenting personalized results. It gives them another reference point in addition to the original query. The difficulty in disambiguating intent for a query was the sole reason results weren’t personalized up to now.

What does the future hold for SEO? Well, as long as users continue to want organic results (and I think personalization will make this more true, not less) there is a need to gain presence there. But the rules of the game are being rewritten. For those willing to retrench, there’s a golden opportunity to redefine marketing as we know it. But it requires looking at a big picture, and, more importantly, using a customer-centric lens to look at that picture. It means changing our approach dramatically. It means drawing back from some highly specialized skills that some have developed, and taking a more balanced approach. Personally, I’m very excited about the possibilities. A little tired, a little burnt out, but up for the challenge. But perhaps that’s because I saw it coming.

Will Wiki Whack Matt Cutts?

Danny Sullivan has an interesting post in Searchengineland about the virtual rumblings over at Wikipedia about removing Matt Cutts because he’s not notable. Say what?

You know, community is a wonderful thing, but there are community dynamics at play, no matter whether the community is based in the virtual world or the real one. There tend to be what I would call conscientious blockheads, strongly opinionated people with a lot of time on their hands that tend to have an undue influence on most forums and wiki’s, or, in traditional terms, volunteer organizations. It’s a bit of a love hate relationship, because they are, after all, volunteers and often are the sole reason that the organizations and volunteer initiatives can continue to survive. But they tend to bend the collective view to their own strongly held personal perspective. And often, they exert their own need for control and recognition in this relative vacuum. Think PTA’s, think the executive of service organizations, think strata councils, think churches. I’ll bet you’ve all already thought of a person just like I’m describing, right?

Well, this type of person, armed with an Internet connection, has now found a new home, and this is true wherever online communities are gathering. Wikipedia would be a case in point. I think any rational person who has a modicom of expertise in the search space would know that Matt Cutts is probably one of the 10 most notable people in search, for a number of reasons that Danny Sullivan outlines (and I think Danny is shortchanging his own notability, but that’s another post).

The beauty of online communities are that there is a certain degree of transparency. We can all participate, if we choose. And us voicing our (hopefully) informed opinion is enough to hold the conscientious blockheads in check. Danny is doing exactly what we should all do, voicing his opinion and filling the vacuum.

The Future of SEO in a Personalized Search Interface

This is a debate that seems to have legs. A few posts back, I came to the defense of SEO from the user’s perspective.

In catching up with a few articles and chatting with a few key people in the industry, I’ve got another perspective that I’d like to share.

First of all, Joe Laratro in last Friday’s SearchInsider debunked Three SEO Myths, one of which was “Natural Search is Dead”. In it, Joe correctly stated:

“Natural search engine optimization is still thriving. It is more difficult today than it was five or six years ago, but the core of search results are still free. Natural Search Engine Optimization being dead is a popular myth because of the standardization of methodology that is now used. Each of the major search engines has released guidelines for Webmasters that detail the dos and don’ts of Web site optimization. Since more of the online world is aware of successful optimization techniques, they do not work as well. In other words, there is more competition from knowledgeable optimizers armed with the same toolsets.”

Back to this in a minute. Also, in sorting through some old articles set aside, I ran across this one from Todd Friesen about Learning the New Rules of Search. It touched on the same topic, looking at what might happen when SEO’s no longer have access to the intelligence tools they use on their competitors, through some type of authentication requirement.

“A move like this, which would block our ability to do competitive research at that level, would be a setback, if not a crushing blow, to SEO as we know it. That got me thinking. Where would that leave all of us search engine optimizers? What research avenues would be left?”

Finally, in the last few weeks, I have talked to representatives from the usability teams at Google, Yahoo and Microsoft. I asked each what was the major challenge for search. The answer varied slightly, but it all went to providing better results, aligned to individual intent. (By the way, I’m currently working on a series of articles from these interviews..more about this to come later)

So, to go back to the orginal reason for the post. What is the future of SEO? Both Joe and Todd are looking at this assuming the current paradigm of one query, one page of 10 organic results holds. In fact, the entire SEO industry is hanging on this paradigm. Right now, link baiting/building, optimization, competitive intelligence and all the rest are aimed at securing a top spot in the organic results. But what happens when there no longer is a “top spot” because every result is personalized, based on your geographic origin, your past search history, your behavior or preferences you’ve shared with the engines. That’s where search is going, through a number of different initiatives, and if less transparency with access to tools would deal a “crushing blow to SEO” imagine what that would do.

Now, that doesn’t make organic any less important to the user. In fact, the increase in personal relevancy will make it more important than ever. So I still stand by my original thought that organic results, of some kind, will always be part of the results set presented. But from a tactical perspective, the disappearance of universal search results throws a King Kong sized monkey wrench in the SEO works. In Canada, we’re already dealing with this as Google experiments with re-ordering organic search results based on Geo-targeting of user IP’s. The same is true in the UK and other markets.

But how do you tactically deliver SEO services in this new environment? The word ranking ceases to have meaning. There will always be a hierarchy in the results, but it will be different for each person. The control of measuring progress by positions achieved will come to a crashing halt and with it, the SEO industry as we know it. If you thought SEO was a black box before, wait til you try it under these new rules.

Over 50% of CMOs aren’t looking for Big Agencies for Online

A new study has reaffirmed something I’m hearing more and more. Big agencies don’t get online.

Sapient, through Evalueserve, surveyed a number of CMO’s, and just over half of them believe that traditional, large ad agencies are “ill-suited to meet online marketing needs”. They believe that there’s too much invested in traditional models, and that agencies can’t think beyond these constraints.

The upshot? Fewer than 10% of those polled seek to partner with large agencies for online marketing. They instead look for partners with roots in technology, a high degree of creativity and traditional print expertise, or, even more common, to use multiple agencies.

It’s not that large agencies don’t have people capable of getting online. In many cases, they do. But they’re trapped in a rigid and bureaucratic structure that sucks the lifeblood out of the bold thinking and initiative essential for online. They spend more time fighting turf wars than they do providing value to clients, and it seems that the clients are getting tired of it.

Increasingly, large agencies are struggling to understand the shifting marketplace. They are fighting the idea of a participatory approach to branding, with a community of consumers at least as important in the process as the actual brand itself. They are far more comfortable with the more traditional, and much more profitable, command and controlled channel form of marketing that has been built over the last several decades. They’re struggling to win in a new game where they don’t know the rules, largely because they haven’t been written yet.

The big agencies are out there shopping right now. They’re looking to buy expertise needed. I wonder how successful this will be. It’s not just the expertise they’re lacking. It’s the environment needed to let their experts do their job. You can buy all the roses you want, but if you lock them in a dark basement, you’re not going to see much blooming.

Lee Odden’s Feed n Read List

In a brilliant example of win/win, Lee Odden has shared his OPML file for the 250 Must Read Blogs in the SEM space. Thanks for including me on the list Lee! As you may have noticed, I’m trying to be more diligent about posting this year (New Year’s Resolutions and all) so hopefully I can persuade you to remove the comment “posts about search marketing from time to time”.

But consider the win/win aspects of this:

  • Lee helps the community by sharing a great resource.
  • Those included on the list share the love by posting a link on their own blogs back to Lee’s post
  • Lee suddenly gets hundreds of links from the best blogs in the business
  • Lee’s authority goes up
  • Everybody wins!

For anyone looking at blog promotion, link baiting or just in how to align the online planets in your favor in general, this is a textbook example!

Most Shoppers Don’t “Shop Around,” at least Physically

A new study from the Grizzard Performance Group found that US Shoppers don’t have time to “shop around”, with 62% not bothering to compare prices at even two stores. However, they’re very open to saving money, right up to the time of purchase. It’s just that they don’t have the time.

This ties in with my previous post about real time inventory and e-shopping, currently being tested by a a few online services at malls and major chain stores. When we can quickly and conveniently check prices at a number of stores in our area through our handheld devices, trust me, shopping will change forever. And then, a whole new dimension of direct response marketing comes into play. Last minute pushes of discounts at the point of purchase, delivered through your mobile device. As the study by Grizzard indicates, consumers are very open to saving money on a comparable product, even if it wasn’t previously in your consideration set. So consider this. The shopping engine knows what you’re looking for, knows where you are, and knows what comparable products are in stock in the same store. The advertiser can purchase the right to push a message to you right at the point of purchase, offering you 15% off their product, or even offering an automated “match and beat” deal, where it automatically matches the price of whatever you’re buying, and takes a further 10% off. A store around the corner could do the same thing, making it worth your while to check out at least one more store. All these things could easily be handled by algorithms and pre-set pricing thresholds.

And what if we take the Priceline approach? You’re ready to buy, but before you do, you send an offer to stores in your area with what you’re willing to pay for a particular product. The store in question can then decide whether to accept your offer or not. It would be true consumer control. And the really ironic thing? It’s a whole bunch of sophisticated technology, but it brings us right back to old fashioned haggling over the price. Isn’t it fascinating that the more sophisticated the technology, the closer we get to how we used to shop a century ago?

A Day in the Life

First published January 4, 2007 in Mediapost’s Search Insider

The U.S. Census Bureau has just released its new statistical abstract. According to the study, here’s how the average adult or teen will spend his or her time in 2007:

  • 65 days in front of the TV;
  • 41 days listening to the radio;
  • A little over a week on the Internet;
  • A week reading a daily newspaper; and
  • Another week listening to recorded music.

I have just one question: Who the hell are these people? Nobody I know.

The Census Bureau was unavailable for comment on the findings, so I have to make some assumptions. I’m assuming that the Internet time includes any work-related activity. So I tallied up my time on the Internet, actively using it, and found I averaged about 4 hours a day. Granted, I’m not a normal user (in oh-so-many ways) but bear with me. That means I spend almost 2 months on the Internet in a year.

Okay, I represent an extreme, and I realize that. So how about my wife, Jill? She is above average in nearly every regard, but when it comes to Internet use, is probably a closer approximation of your garden-variety user. Jill spends about an hour-and-a-half online a day. That puts her at just over 3 weeks of surfing in a year. My kids? About two-and-a-half hours a day, the majority of that chatting with umpteen zillion friends simultaneously on Messenger and butchering the English language I love, but I digress. That’s about five-and-a-half weeks in a year.

Perhaps the whole Hotchkiss family is abnormal when it comes to using the Net. Who are the least Net-savvy people I know? My Mom and Dad. Even they spend a half hour a day online, which puts even them slightly higher than the U.S. average.

Let’s attack the question in a different way. Let’s put together a day in the life of this mythical average American. According to the statistical abstract, here’s how his or her day is spent:

4.27 hours watching TV

2.7 hours listening to the radio

And roughly a half hour each surfing the Net, reading a newspaper and listening to music

Let’s assume that this person gets an average of 7.5 hours sleep and spends another 1.5 hours eating. That leaves fewer than 7 hours a day to do everything else, including being gainfully employed (unless their job is actually watching TV). Into that basket would fall things like reading a book, going for a walk with your family, hitting the gym, cleaning up the house, going on a vacation and talking with friends. Something seems askew here.

So I’m left with two possibilities. Either I have a warped view of the world because everyone I know represents the extreme end of the spectrum, or the U.S. Census Bureau has its facts wrong. If it’s the former, that means there are people, somewhere, that are really dragging down our collective average by remaining comatose in front of the TV for the better part of a day. I knew they existed, I just didn’t know there were so many of them. And it can’t really be the second possibility, can it? I mean, when’s the last time you remember the government getting its facts wrong?

 

The Sausage Manifesto: An Open Letter on Click Fraud

Jeffrey Rohrs has posted an open letter to the PPC Networks calling for a fresh approach to tackling the click fraud issue. He’s named it the Sausage Manifesto. In it, he outlines 11 things he’d like to see the networks do:

  1. Talk, Don’t Lecture
  2. Appreciate Our Unique Circumstances
  3. Invest in Proportion to the Problem
  4. Acknowledge that Tracking Alone Is Not the Answer
  5. Improve Click Quality Customer Service
  6. Build a Click Quality Education Resource Center
  7. Light a Fire Under the IAB
  8. Play Nice with Others
  9. Put Somebody in Jail
  10. Create a Click Fraud Perp Registry
  11. Put Your Data Where Your PR Is

I agree with all Jeffrey’s points, but to varying degrees. I think some of them are probably not completely fair to Google and Yahoo, but they do sum up the level of frustration with advertisers, so they have to be addressed and taken seriously by the engines. If we use Shuman Ghosemajumder and his team at Google for an example, I think they’re working on points 1, 3, 4 and 7.  But most advertisers aren’t aware of the extent of the effort and that, combined with a natural skepticism about any messaging coming from the Networks, who have so much at stake, are impeding much needed communication.

For that reason, I absolutely think it’s time to knock down the walls. I agree completely with points 5, 6, 8, 10 and 11, especially 11. The whole problem here is the lack of reliable data. We’re trying to peer over the walls. Google and Yahoo in particular have to be more forth coming. Nothing solves a problem faster than exposing it to the light of day. Information is the answer here, and getting the information into as many hands as possible. I appreciate Google’s efforts to police the problem, but this can’t be a siloed effort, it has to be a collaborative one. Having wrestled with the issue through SEMPO, I’ve seen first hand how access to data to even judge the scope of the problem can be a tremendous challenge.

Thanks to Jeff Rohr for crystallizing the thoughts of a lot of advertisers. Hopefully it acts as a catalyst to push forward solutions.