Category Archives: Online Trends

Search a Real Downer

The latest numbers from comScore show how the mood of the nation has shifted, and how it’s being reflected in what we search for. This is a topic I’ve talked about numerous times, so rather than spout it all again, I’ll just provide a few links to past posts. But I think one of the tables from the comScore release paints a pretty sobering picture:

Growth in Search Terms Related to Economic Downturn
December 2008 vs. December 2007
Total U.S. – Home/Work/University Locations
Source: comScore Marketer
Search Term 
Total Searches (000)
Dec-2007
Dec-2008
% Change
“Coupons”
7,637
19,921
161%
“Unemployment”
2,688
8,214
206%
“Discount”
6,271
7,928
26%
“Mortgage”
4,518
7,756
72%
“Bankruptcy”
1,012
2,589
156%
“Foreclosure”
824
1,373
67%
“Unemployment Benefits”
215
748
247%
“Online behavior has come to reflect the interests or concerns of Americans, and we are certainly seeing this manifest itself with respect to the economic downturn,” said comScore chairman Gian Fulgoni. “Search volume using terms relating to the economy has ballooned over the past year as Americans have become increasingly concerned over their economic wellbeing.”
Gian and I talked about this almost a year ago at the Search Insider Summit in Florida. That lead to a column in Search Engine Land talking about how whatever is top of mind for us translates into search activity – Battelle’s Database of Intentions. Ironically, this same tendency is one of the reasons why I think Search will do particularly well in the current economic meltdown – the subject of another Just Behave column.

Is Gen Y Wired for Television?

Cory Treffiliti had an interesting post this week on MediaPost, talking about how TV (and the 30 second spot) is not dead, and how, for two occasions, at least (the Super Bowl and the inauguration) he found himself in front of a TV, not a monitor.

Right now, I’ve been doing a lot of reading about the concept of digital immigrants and digital natives. The theory is that through neuroplasticity and neural pruning, we have a generation coming forward that are fluent in digital technology. Actually, tomorrow I’m talking to one of the researchers, Teena Moody at UCLA, who has been doing some interesting fMRI studies in the area, along with Dr. Gary Small.

So, if the Digital Native theory holds true, I wonder what that does to Treffiliti’s observation. I, like Cory, find myself wanting the more immersive experience of a TV for certain types of viewing. But the fact is, the TV is a technology I grew up with. My brain is wired to understand TV. Is the same true of a 15 year old who’s used to doing 6 things at once in front of a computer? Would they have the same need to watch events like this on the TV, rather than a computer monitor, or a mobile device, for that matter?

The media we interact with determines the media we seek. I agree with Cory that TV, as we know it, is in no imminent danger of demise, but I also see it caught in a wave of change that will make it increasingly difficult to stake some revenue positive high ground. And if we thought the past decade was one of precipitous change, what happens when the technologically fluent Gen Y’s start taking over the world? In the words of Bachman Turner Overdrive (giving away both my age and my Canadian nationality in one fell swoop):

“You ain’t seen nothing yet!”

Tweets from the Edge

First published February 5, 2009 in Mediapost’s Search Insider

I’m now on Twitter (@outofmygord if you’re interested), which, to use the emerging verb of consensus, means that I tweet.  I’m not sure I’m a Twaddict (a la Todd Friesen) but I am moving through Rohit Bhargava’s 5 Stages of Twitter Acceptance

1 . Denial  — “I think Twitter sounds stupid. Why would anyone care what other people are doing right now?”

2. Presence —  “Ok, I don’t really get why people love it, but I guess I should at least create an account.”

3. Dumping –“I’m on Twitter and use it for pasting links to my blog posts and pointing people to my press releases.”

4 .Conversing — “I don’t always post useful stuff, but I do use Twitter to have authentic 1X1 conversations.”

5. Microblogging — “I’m using Twitter to publish useful information that people read AND converse 1×1 authentically .”

My self-assessment has me currently lodged between steps 3 and 4, but with signs of promise. And so, through the phenomenon of synchronicity, it now seems that everywhere I turn I see signs of Twitter. One of the recent one’s was Kaila Colbin’s Search Insider column about Twitter’s monetization strategy, or lack of same. Twitter is not unique; virtually every social network struggles with this issue. I would like to add two observations from my perspective.

The Curse of the Early Adopter

Social networks seem to be perennially stuck on the edge of the wrong side of Geoffrey Moore’s Chasm.  They flourish with early adopters, who are by nature fickle when it comes to technology and any bright shiny object, but social networks have difficultly embedding themselves in the mainstream. I’m seeing signs that Facebook might successfully make the leap across the Chasm, based on my “Jill” litmus test. When my wife is familiar with a technology, it usually means it’s crossed the Chasm.  Jill doesn’t have a Facebook page, but she has visited it (due largely to the fact that we have teenage daughters — ’nuff said).

The problem in trying to track these things is that whatever the blogosphere is buzzing about bears little resemblance to what will actually gain traction with a mainstream market. We (and yes, I include myself) are exactly the wrong people to prognosticate about what may be the next killer app for the average Joe. We are all technology nerds. Everyone I know in this industry is a technology nerd. The ones who actually blog and emerge as thought leaders are the most hopeless of the lot. We exist in a rarified technological atmosphere and have largely lost touch with the real world. It doesn’t mean we’re inherently prone to be wrong about the marketability of new technology, but it also means we’re not inherently right. We’re guessing, and all too often we let our personal enthusiasm bias our forecasts.

Social networks are always held up to Google as the monetization baseline, and it’s an unfair and misleading comparison. There were a number of circumstances unique to Google that won’t be replicated with a social network. They include user intent, the nascent stage of the Internet during Google’s introduction, lack of visionary competition and the luxury of developing a critical mass of usage on its own real estate.  The problem with monetizing Twitter is that much of the interaction with it happens on a third-party app.

Social and Market Norms

Perhaps the biggest reason why it’s difficult to monetize social results has to do with how our online experiences are framed, and the concept of social vs. market norms.  Here’s an example. You take your family out for an Italian dinner. The meal is fabulous. The portions are huge. After one of the best meals you’ve ever had, you hand $180 to the hostess. She throws it back in your face, storms into the kitchen and you’re abruptly escorted to the door. If we were at a restaurant, this reaction would be rather surprising. But if we’re at my mother-in-law’s for Sunday dinner, it suddenly makes sense. The difference is the frame in which we view the scenario. If we look at it through a market norm, the rules that govern commerce and fair trade, it’s entirely appropriate to offer fair compensation for a meal. If we look at it through a social norm, the rules that govern our family and friend relationships, it’s an unforgivable insult.

This slippery slope between market and social norms is the treacherous one that a social network must tread. Here’s another example. You’re at a party and you’ve asked two friends about their opinions on the best car for you to buy. Another person at the party overhears this — someone who just happen to be a salesperson at the local Ford dealership. Sensing opportunity, the salesperson whips around and immediately starts telling you why the Ford Mustang is the perfect car for you. How would you feel? How would you respond to the information?  How uncomfortable would the discussion become?

The challenge is that you moved from a social norm to a market norm and you weren’t in control of the transition. The same is true when you use a social network to ask for information and suddenly the network uses that to present targeted ads to you.  Kaila was right to point to Twitter’s search functionality as its only monetization opportunity. Google has conditioned us to accept a search results page as a place we can look at through market norm eyes. Also, we’re searching all Tweets for mention of a product, not specifically asking our friends. The difference is crucial in how we accept the advertising message.

The confluence of social networking and search is exciting to contemplate, but expect a lot of trial and error in the quest to find the right business model. Personally, I don’t expect to find it any time soon, and I also expect a lot of miffed users as part of the collateral damage.

Hyperlinking Reality

First published January 29, 2009 in Mediapost’s Search Insider

Fellow Search Insider David Berkowitz (David, it’s been too long since we riffed on each other’s columns!) allowed his curiosity to wander down some fascinating potential directions search may evolve in a couple of recent columns, first looking at Ford’s plans for integrating GPS-enabled voice search  in all its  vehicles, and then speculating how one search could be launched in 17 different ways, both today and in the future. One of his speculations is what I wanted to explore further today:

“Instead of entering a query, Penny may be able to put on a special set of glasses and scan her surroundings for store names and reviews. The headsets and eyewear from Vuzix now link up to other portable devices such as iPods and camcorders, but they keep including more functionality within the gadgets themselves.”

Picture This…

Sound far-fetched? Not according to the MOBVIS (Mobile Attentive Interfaces in Urban Scenarios)  project in Europe. In a nutshell, the MOBVIS technology allows you to take a picture of your surroundings with your camera-equipped mobile device, then MOBVIS recognizes aspects of your environment and places hyperlinks on the items where it has relevant information. So, if you take a picture of a bus stop, MOBVIS can retrieve what buses stop there and what the schedule is. Assuming city buses are equipped with GPS and telemetric units, it could also tell you how long you have to wait for the next bus.

Currently, the MOBVIS project is visually mapping and testing in three European cities; Graz, Austria; Ljubljana, Slovenia; and Darmstadt, Germany). Geo-referenced imagery tied to streetscapes from these three centers is online and available to the scientific community. One has to imagine that Google would be paying particular attention to this, as it’s a natural tie-in with its Street View project.

Say Cheese and Search…

So, let’s imagine what MOBVIS could do. First of all, it could be an incredible interactive guide, bringing mountains of information about your surroundings to just one click away on your mobile device. Dining reviews, items on sale in local stores, entertainment schedules and reviews, transit schedules, self-guided tours, could all live on the other side of the MOBVIS linking icon. Now, all that is theoretically available through GPS positioning, but in urban pedestrian applications, GPS has some functional limitations. It’s difficult to get an accurate enough fix to narrow your location to even a half block radius, especially in the downtown “urban valley” core. MOBVIS allows you to restrict your information quest to exactly what you want to include in your viewfinder, making it a much more specific query tool. Also, MOBVIS could be tremendously useful for the visually impaired, allowing them to scan their surroundings and retrieve information.

Making Reality More Useful

What MOBVIS does, along with all the other search permutations mentioned by David, is point the way of search’s future. I’ve always said that search is not about the destination, whether it’s Google, Yahoo or Live. It’s about the functional engine that sits behind the portal. It’s about the ability to link people with relevant information and, more importantly, timely functionality. Search is about letting people do what they have to do. MOBVIS is just one more way to establish the link. It’s a pretty amazing way that opens up some intriguing possibilities, but what makes MOBVIS exciting is its potential for helping us navigate our current reality. David’s 17 ways to search, Aaron Goldman’s past speculations about ambient findability, and my ongoing exploration of search as an expression of us reaching for our goals all share a common theme: search enhances our ability to do things.

In a recent post, Silicon Valley writer Sarah Lacy speculated that Google might be nearing the end of its reign as online’s Golden Child. She used some dubious logic about usage and traffic to posit that the mantle is ready to be passed to Twitter or Facebook. What she missed is the central premise of Google’s mission. It’s not about driving traffic to Google.com. It’s about connecting us with what we’re looking for. What Google has been doing through Google Maps, Street View, Universal Search, personalization, Google Mobile and yes, even the lowly but ubiquitous Google Toolbar, is weaving together the functionality needed to deliver on that mission. It remains to be seen whether Google will be successful in doing so, but it’s certainly well in the lead. And that’s the power of Google’s potential. It’s about providing the infrastructure to connect all the dots, both online and in the real world. It’s not about being one of the dots.

Google Evolves Back to its Core

First published January 22, 2009 in Mediapost’s Search Insider

Last week, I talked about how the economy will sort out winners and losers even faster. This week, a trio of news releases seems to confirm that search, and Google, in particular, will be a winner. Unfortunately, almost no one will recognize that they’ve won.

Reports out of AdGooroo and Covario show that search is still ticking along better than ever. AdGooroo has Google and Microsoft on track for the best Q4 in history. Apparently, despite the gathering storm, people still search and still click on ads. And, relatively speaking, there’s been minimal impact on search ad budgets. We saw a lot of advertising budgets hold the course for 2009. This was a good news/bad news scenario. The good news was, budgets weren’t cut. The bad news was that planned increases, in some cases aggressive increases, were put on the shelf.

So, are there smiles in Mountain View? Not according to a MediaPost  article from yesterday. Google is jettisoning every piece of financial baggage it can, drastically cutting costs to keep the financial boat upright in advance of the earnings report (due out today). The latest cut? Google’s newspaper business.

What Does It All Mean?

By any sane analysis, Google is doing very nicely, thank you. Jeffrey Lindsay, an analyst quoted in the MediaPost article, expects to see 23% year over year revenue growth, with 14.3% growth expected for 2009. In the rational world, that would be cause for popping Champagne corks and backs bruised from vigorous patting. Given the performance of every other company on the planet, double-digit growth is nothing short of miraculous. But in Google world, it’s an “all-hands-on-deck” disaster. True, Google’s stock price has retreated to levels not seen since 2005 (Psst.. stock tip: Buy!), but the financial engine is ticking along very nicely, thank you.

What is happening is a bit of natural selection and forced evolution at the Googleplex, and although this will be painful, it will be very healthy in the long term. Google is picking its winners and culling the losers. At the same time, its strategists are redefining themselves into a sustainable business model. I suspect Eric Schmidt and CFO Patrick Pichette have stolen a page from Rahm Emanuel’s book: “Never let a serious crisis go to waste.” The economic freefall and irrational pessimism of analysts gives them the opportunity to impose some logical constraint on the overexuberance we saw from Google in days gone past. Google was going to reinvent everything, from advertising to telecommunications to sustainable energy. Now, it appears Google realized there’s more than enough in its core mission (organizing the world’s information) to keep it busy for the foreseeable future. I always thought that the starry-eyed idealism was commendable but not sustainable. Google is growing up.

Think Search is Strong Now? Just Wait…

In the meantime, think for a moment how search has positioned itself. Despite one of the worst economic years in recent memory, Google showed 23% growth in revenues. During the same time period, every other economic metric went into free-fall. Consumer confidence plunged to its lowest levels ever. Retails sales and online sales both hit the skids. Let’s not even talk about home sales. The Dow Jones is down 40% in the past year. The economy didn’t just slow down. It screeched to a halt. But in this same time, search kept plugging through without a hiccup. Did the astronomical growth continue? No, but 23% is pretty damn good in anyone’s books.

People kept searching and clicking on ads. In fact, according to AdGooroo and Covario, they did so more than ever. The only thing impacting search right now is the sheer fear of advertisers who are being assailed on all fronts.

Understandable? Yes. Rational? No.

So, when we hit bottom and start climbing out of this economic black hole, search will have consolidated its position as the most accountable of marketing channels. It will form the basis of a new marketing model: consumer-driven, immediate, measurable, effective, interactive. And Google will be the most powerful player on the block. Best of all, the company can do it without worrying about selling newspaper ads, redefining America’s power grid or colonizing space. All Google has to do is focus on helping people find what they’re looking for.

 

Apple Should Build a Search Engine

As I mentioned..got my iPhone late last week. What’s amazed me most is the attention to detail in the user experience. Every little thing has been thought through and integrated into the experience. As opposed to Windows Mobile..where every little thing seems to be developed seperately and then the whole ungainly mess is bound together with chewing gum and scotch tape. Can’t speak to the other mobile OS’s..but the iPhone amazes me.

There’s a philosophy here that seems to be recurring. You can throw brute force innovation at a problem, trying to overwhelm it by a sheer show of power. Or, you can create innovation around the needs of the user, making sure your solutions contribute to an amazing user experience. Microsoft seems to be in the first camp (where much of the ad hoc innovation ends up being dropped, just because it can’t be integrated in a useful manner) and Apple is in the second camp. You’ll see this in other industries. I’m thinking GM and Toyota’s approach to the driver experience.  I don’t think anyone on the planet has more respect for the user than Apple.

This is the thinking that’s desperately needed in Search. Google comes the closest, but even they don’t have the Zen-like holistic user experience that Apple seems to bring. It would be amazing to see these two colloborate on next generation search..with Google’s immense respect for relevant information, defined by the user, and Apple’s ability to weave it into a seamless and amazing experience.

Evolution in the Face of Adversity

First published January 15, 2009 in Mediapost’s Search Insider

I am an unrepentant Darwinist, which probably doesn’t surprise anyone who reads my columns on a regular basis. The whole topic of evolution and emergent behaviors in complex systems constantly fascinates me. As Steven Johnson pointed out in his recent book, “Emergence,”  the theme of patterns rising from complexity is  ubiquitous and could well define the 21st century.

The World is a Cruel Place – Get Over It!

One of the most interesting things about evolution is that the pace of evolutionary change picks up in the face of adversity. The more hostile the environment, the faster the wheels of evolution roll and the quicker we adapt. Of course, we do so in a pretty ruthless way. The weak get culled faster. There are no consolation prizes in this lottery. Winner takes all. Richard Dawkins didn’t call genes “selfish” for nothing.

Which led me to apply the rules of biology to our current marketplace. We are going into what may be the most hostile environment for marketers in recent memory. Expect losers to die faster and winners to adapt quicker. But it’s just such an adverse environment that ultimately decides the survival of the fittest. After all, our marketplace is just one more complex system where emergence again plays out.

When the Going Gets Tough

We’ve seen the groundswell of change wash over marketing in the last decade or so. Inexorably, the digital sea change has already started to determine winners and losers, but when ad budgets were fatter, there was more room for everyone. Now, as those budgets are dramatically scaled down, advertisers are forced to make tough decisions.  Channels have to prove themselves against tougher standards. There will be fewer winners and more losers and the evolution of the marketplace will pick up dramatically.

In the end, this will be good for most of the digital marketplace, especially search. Already with our client list, we’ve seen tough budgeting decisions dramatically impact more traditional channels but leave search relatively unscathed.

Scarcity Eliminates Stupidity

Another outcome of the financial meltdown will be that only the smartest marketers will survive. A few years ago, I remember someone from one of the largest advertisers in North America once saying to me, out of frustration with  their marketing program, “We’re so big we can afford to be stupid.”  No more. Today, only the smartest will survive. Size is no longer a guarantee of survival, nor a justification for stupidity, as we’ve seen in a number of particularly painful examples.

Smarter marketers will make smarter decisions, including the painful ones.  They will be ruthless about culling out the losers. Which means chronic mediocrity will become acute failure;  the mortality rate will rise substantially. This will drive our marketing models into the future much faster.

Strategies for Survival

How do you emerge on the winning side of the Darwinian lottery? Based on what I’ve seen, you won’t go far wrong if you concentrate on the following:
–    Accountability for and transparency in delivering on advertising objectives.
–    Understanding the intent and behavior of your target market.
–    A ruthless focus on efficiency in getting the right message to the right person at the right time.
–    Effectively leveraging a fundamental understanding of how the marketplace is shifting due to technology.
–    The ability to map out the most effective prospect touch points, and strong integration between all the channels found at these touch points.
–    The ability to collect and utilize all possible intelligence sources.
–    An ability to brutally assess the reality of the environment and execute quickly and effectively against these realities.

It’s the last of these factors I’d like to focus on for my final thoughts on this topic. In a hostile environment, negativity comes with the territory. The winners will seek out negativity as an important indicator of the true situation and will use it to adapt. In this case, the fittest will see things as they are, not as they wish they would be. In coming months and years, the difference between these two viewpoints will be critical.

Chasing Digital Fluff – Who Cares about What’s Hot?

Marketers are falling over themselves in their rush to the digital landscape. Social media is SO hot! But not as hot as behavioral targeting. And if you think that’s hot, wait till you see what you can do with mobile!

The Digital Dogpile

blow-dandelionMarketers desperately scramble over each other, grasping for a tenuous handhold on some emerging tactic that gives them, however briefly, a fraction of an inch advantage over the competition. New digital marketing directors prove their worth through their savvy of online technology. They cut their teeth on Facebook advertising and put Powerpoints (or, because they’re uber-cool – Keynote presentations) together on the immense potential of the social graph.

Churn is the norm in digital marketing. And marketers are the worst, whipping the industry into a froth because they get all breathless about the latest thing. My inbox gets a hundred emails every single day talking about how freaking cool everything is and how we’re stumbling to figure out the importance of everything. If you’re not an early adopter…scratch that…if you’re not a bleeding edge pioneer, you’re a hopeless loser. The pace of marketing testing and adoptions just keeps spinning faster and faster.

Step Away from the iPhone

Stop! Take a breath. Relax for a few minutes. Get outside and breath some honest to God fresh air. And don’t take your iPhone with you. Because here’s the scoop Kemosabe, all the technology in the world is useless until your audience figures out how to use it. And here’s the nasty little secret. Humans love bright shiny objects but we’re pretty slow when it comes to figuring out how to jam it into our already busy lives. Until that happens, your nifty online strategies will never be anymore than a pointless treadmill jammed on overdrive. You can run as fast as you want, but you’ll never get anywhere.

I do financial analyst calls every quarter and the last question on the call is always the same: anything else we should be looking at? Apparently, technologiosis (or technitis, or technophilia, take your pick) is contagious. My answer is usually the same..wait till people figure out how to use it.

Think about the buzz that’s been devoted to social networks and, more recently, real time search, in the last 2 years. That’s 2 years of foaming-at-the-mouth marketing buzz about how this channel is:

A) the savior of marketing
B) most effective connection with consumers
C) coolest technology without an identifiable purpose
D) biggest waste of time on God’s green earth
E) all of the above

The Geekiest Guy on my Block

Now, I’ll be the first to admit I don’t have a clue how to use social media in a meaningful way in my life. I have a Facebook page, I tweet, I have a Linked In profile, a Trip-It network, just to name a few, making me the geekiest guy I know. Maybe not at an online marketing show, but if you ever visit Kelowna, take a walk with me down my block and I’ll prove my techno-geek status is several Trekkie parsecs ahead of anyone else. I suspect the same is true for you. And you know what? I have no frigging idea why Facebook is important or why I should log into my profile today. It’s cool, but it’s not useful in an every day kind of way. And if I, who spend over 10 hours a day online and have a network of friends and colleagues that span the globe, can’t jam Facebook into my life in a useful way, how is the average techno-pleb going to?

As far as I can see, most of things marketers salivate over fall into the same category..digital candy that tweaks our dopamine supplying pleasure centre but serves no real, sustainable purpose in our lives. This puts it in the same category as 95% of my iPhone apps, 99% of the computer games on my laptop and the Wii my nephew got last Christmas – an obsession for approximately 27 hours, an occasional pastime for another 36 hours, then something we ignore for the rest of our lives.

The one difference, at least in my experience, seems to be teenagers. Most of things that seem to be passing fancies to us do seem to become useful in the lives of the average 15 – 23 year old. But, as I said in a previous post, when you look at what the live of a high school or university student looks like and what they want to do, a Facebook suddenly makes sense. For me, not so much.

An Eyeball is an Eyeball, Right?

So, even given this notorious degree of fickleness, why should marketer’s care? Eyeballs are still eyeballs, right? Even if the eyeballs we’re capturing this week will be completely different than the eyeballs we capture next week. This approach only works if you consider your market a faceless blob of unleashed consumer potential. If you actually want to get relevant messages to real people with real needs, the logic starts to break down immediately.

Effective marketing depends on reliable targeting. And reliable targeting depends on established patterns. And established patterns depend on sustained behaviors. And sustained behaviors depend on things we find useful. Otherwise, we’re marketing via fad, condemning ourselves to spending our professional lives and our client’s ad dollars chasing fluff in a hurricane. Our audience will always be “just passing through” on the way to the next thing.

I Miss Frank Cannon, PI

movies_070708_cannonMarkets have to stabilize in order for us to understand the individuals that make up that market. Also, brand relationships need a stable environment, allowing them to germinate and flourish.

When I was a kid, Kraft always sponsored Cannon. When you tuned in to see William Conrad somehow roll his fat old carcass out of his Lincoln Continental and pick off a sniper 3 miles away on a mountain top with his trusty .38 revolver, you could depend on Kraft telling you how to cook Mac & Cheese in every commercial break. Much as the entertainment value may have sucked (beggars with 2 channels in the Canadian prairies can’t be choosers) you knew Kraft would be there and Kraft knew who they were talking to. The audience had stabilized.

Until things pass through the temporary obsession phase to something that adds real value to our lives, we can’t consider advertising on these channels as anything more than an experiment. The trick in picking the right digital channels is not to look at the eyeballs they’re attracting today, but in how these things might be used in real, practical ways. That will give you an idea of how real people might be using these things next week or next month, when the technoratti have moved on to the latest bright shiny object.

To Google’s Competitors: Please, This Year, Do Something Amazing!

First published January 8, 2009 in Mediapost’s Search Insider

A month ago yesterday, I was on stage in Park City, Utah at the Search Insider Summit with Danny Sullivan, Jeff Pruitt (SEMPO President/iCrossing) and John Tawadros (iProspect) talking about Google’s domination of the search space. Both Danny and I took Microsoft and Yahoo to task for not mounting a more significant challenge to Google’s dominance. It could be my imagination, but it seemed that for the rest of the Summit, I felt a bit of a chill in the air between myself and the Yahoo and Microsoft reps that ventured to Park City. I suspect the feeling was that as the emcee and moderator, I should have been less opinionated and more neutral. Fair enough, I guess, considering the root of the word moderator. But, with my first column of the new year, I felt I should clear the air a little bit.

I Like You, I Really Like You…

Really, Microsoft and Yahoo, I don’t hate you. You frustrate the hell out of me, but I certainly don’t hate you. I root for you constantly. I’ve always been an “underdog” kind of guy. Anything I mentioned on stage in Park City I’ve said directly to your respective development teams in Sunnyvale (Yahoo) and Redmond (Microsoft). I’ll tell anyone that listens. Ad nauseam, so I’ve been told. In a recent post, Danny Sullivan called it tough love. Danny and I have talked about this and we both really, really want you to succeed. But as much as I’ve tried to give helpful advice, the right people don’t seem to be listening.

Here’s the thing. I love search. I love its potential. I love the way it makes me more functional and sound smarter and better informed. Yet I know we’ve barely scratched the surface. There is so much more to come, but we need to get there as fast as possible. The only way to do that is to have a more competitive market. Google needs to have someone constantly breathing down its neck. The current market domination isn’t good for anyone, especially not the user. I suspect the engineers (not the bean counters) at Google even feel the same way. We need an arms race in search. Right now, it’s like the U.S. taking on Canada and Iceland (as a Canadian, I can say that). So when I say pull up your socks and take search seriously, I mean it with love.

Bottom Up is the Way to Go

In Danny’s post, he nicely outlines the symptoms of malaise at Microsoft. And lord knows everyone and their dog has been piling on the bash-Yahoo bandwagon in the last few months, so I won’t go there. The problem, as I see it, is that there’s a gap a mile wide between the top and bottom in both organizations. The result is a dysfunctional culture. The front lines at both organizations desperately want to do something significant in search, but they’re hamstrung by a lack of clear strategic focus from the top. Microsoft is locked in a product development mindset that squeezes anything amazing out before it can even make it to beta. Yahoo is trying to walk an impossible tight rope, tweaking the user experience while at the same time squeezing as much money as possible out of the search page.

To do something amazing in search, both organizations have to start at the foundation, the user, and rebuild from the ground up. What I would like to see is an approach taken by Intel and Apple in the past, leapfrog development. Let one team work on tweaking the existing product, and lock another team away somewhere to reinvent the future. Throw the rule book away and start over. Take your brightest rebels, remove them from the distractions of mind-numbing bureaucracy and panicked financial analyst reports, and let them do what they long to do: beat Google. Let them do something amazing.

Let People Be Amazing, Then Keep Your Hands Off

But please, if someone at Microsoft or Yahoo is listening, don’t make the same mistake GM did with Saturn. The launch of Saturn in 1983 redefined how a North American car company could be. Many of the legacy issues that plagued GM (confrontational union relationships, overly complacent dealer networks, quality control issues) were left behind with Saturn, creating an exceptional degree of loyalty and pride of ownership. In fact, Saturn became so successful that GM just couldn’t keep its hands off it, gradually bringing Saturn more and more into the GM corporate fold and, in the process, squeezing much of the life out of the brand.

Amazing things wither and die in an atmosphere of corporate bureaucracy, visionless management and political infighting. Search is too important and too vibrant to leave it to this fate. Let 2009 be the year to do something remarkable.

Fear, Greed and the Google Parallax View

First published December 18, 2008 in Mediapost’s Search Insider

Greed is right.

Greed works.

Greed clarifies, cuts through, and captures the essence of the evolutionary spirit.

Greed, in all of its forms — greed for life, for money, for love, knowledge — has marked the upward surge of mankind.

— Gordon Gekko, “Wall Street”

Yesterday, I listened to an interview with Canadian businessman Stephen Jarislowsky. Jarislowsky is one of Canada’s richest men, our version of Warren Buffet. And he said something simple but profoundly important in the interview: Greed is strong, but fear is stronger.

Gekko is right. Greed does drive us. It is evolutionary. It’s hardwired into us. Harvard professors Nitin Nohria and Paul Lawrence identified the drive to acquire as one of the four primary drives of humans But as Abraham Maslow pointed out, there is a hierarchy of human needs and drives, and fear will always trump greed.

Our society has been defined by greed but I don’t agree that greed is right. It forces a zero-sum mentality, which, due to the blessings of fate, has resulted in a inequitable division of resources for us here in North America. The world’s possessions are seriously out of balance, and there is no way to redistribute without severe pain for those that currently have the possessions. Bill Clinton has been warning us about this for years, and it’s now beginning to happen. That is the pain we’re just beginning to feel, and we’re afraid. So, our evolutionary transmission has geared down into the first gear of survival: fear.

The interesting thing about this, from our own little slice of the world, is that we see our collective human consciousness captured in the query logs of Google. As we switch from greed to fear, we see search volumes reflect that. That’s why, in the past year, we’ve seen number of searches for “recession” catch and surpass the number of searches for “mortgages.” We’ve gone from dreaming about acquiring to worrying about defending, and whatever we’re thinking about, we search for.

This is a powerful demonstration of the power of search. It shows just how accurate a barometer it is of our collective mood. And mood determines reality. Our emotions are the jet fuel of our drives. They are our internal guidance systems that keep us on track to realize our goals. Our emotions, in aggregate, swing the economy, and the nation with it, from boom to bust. And there’s no better indicator of that then the searches we do on Google. John Battelle had it right. Google is the database of our intentions.

There has been endless speculation about whether search will weather the financial crisis. The question is really not worth asking. The fact that search has so accurately reflected the shift of our confidence shows how essential it is. Yes, people will use it less to search for things to buy and use it more to search for ways to survive, which will impact advertising revenues and cause pain (and hence, fear). But it is what it is. The search patterns show who we are and what’s on our mind.

But there will also be an interesting side effect that search marketers will have to adjust for. Kevin Lee called it aspirational searches. Just because we go into defend mode doesn’t mean we stop dreaming. Greed can be pushed out of the driver’s seat temporarily by fear, but soon we start planning our escape. Fantasy is a favorite activity of ours. Look at the boom of the movie industry through the depths of the Great Depression. Even though we can’t afford a new car or a trip to Mexico, we can still pretend that we can, and this ersatz consumer activity will also show up on Google’s query logs, causing much head-scratching about the sudden drop in conversions.

We’ll adapt to the new reality and we’ll survive. That’s why fear exists. It allows us to marshall our resources and focus on the threat. And eventually, greed will once again turn on the tap. The balance between these two forces has been swinging back and forth for hundreds of thousands of years. But never before have we had such a clear view of how it happens, thanks to search.

P.S. Just realized, because of the way the holidays stack up on the calendar, that this is my last column for 2008. It’s been a true pleasure spending each Thursday with you talking about search, branding, the brain and anything else that crossed my mind. Thank you for listening (and responding). I look forward to picking up the conversation again in 2009!