Google Farts. Stock up 13%


Google’s doing a great job and putting out some good stuff such as customized search. Earnings for Q3 were better than expected, but that should already be reflected in the stock price.

Since Google already has a huge portion of all internet searches, and given that they just spent 1.6 billion for YouTube with marginal current revenues, and given that we are in a very uncertain time where online revenues could go down or other companies could spring onto the search scene with something great almost overnight and threaten their dominance ….
What exactly is driving this stock price through the roof? It kind of smells like 1999 to me, but what do I know?

Kevin Rose to Newscorp: Digg this $150,000,000 price tag?


It now appears that Digg probably won’t be sold to Newscorp and may simply go for another round of financing. If so Rose and Zuckerman over at Facebook may be sharing some pizza in a few years thinking “wow, we turned down HOW MUCH?” One uncertainty with Digg appears to be traffic. Comscore shows a small fraction of what Digg claims and Alexa traffic seems to support. However Alexa is notoriously unreliable, often showing huge swings where none exist and seeming to favor tech sites, probably because the toolbar Alexa uses to count visits is more often on the computers of tech people. For Digg, itself a high page view high tech site, Alexa is a questionable measure.

The Comscore traffic discrepancy is so huge that either Digg or Comscore’s credibility should be at stake. Not so in this new bubbling time where nobody seems to care much about the facts, just the hype. Like YouTube, Digg offers little of substance, a lot of page views, and not much revenue. They are lucky the pockets are so deep and the rationale so thin for these megabuck deals.

Danny I was hoping for more – how about a Search UNconference?


I don’t know Danny Sullivan personally aside from comments at his blog and forums, but all reports say he’s a fine guy and easily one of the top search specialists in the world.

When it looked like Danny would be leaving Search Engine Strategies earlier in the year I was optimistic that he might break those of us in the publishing and search marketing fields out of the ‘same old speakers’ and ‘same old pitches’ one tends to hear at the two main search conferences: SES and WebmasterWorld’s “PubCon”.   However he’s not leaving yet, so I’m happy for him I guess but disappointed he won’t come up with something new.

I think many would agree that Danny’s the guy who could bring something really new and powerful to the growing, global, search marketing human (and information) network. Something that would capture the spirit of “Web 2.0” which is far more collaborative, information rich, virtual, and unstructured than the internet of the 1990s.   Also, there are a HUGE number of case studies now that reflect all the common problems websites have.  Simply examining all these in a conference environment would be far more helpful than listening to yet another SEO guy talk about how he gamed Google’s Algo five years ago.

I don’t want to be too critical of SES and WMW because these are good conferences all things considered. However after attending some UNconferences such as MashupCamp I’m convinced that the UNconference format (or things like Yahoo’s Hack Day) are vastly superior to the old standard where speakers, often with less experience than many in the audience, struggle to speak clearly and make with their weak powerpoint presentations relevant.

UNconferences, like Startup Camp in a few weeks, tend to unleash the power of the audience and ironically the lack of structure creates far more cohesive sessions. I think this is because your brain goes into active vs passive mode.

So Danny after you make your deserved big bucks back at SES over the next year, how about shaking things up for 2007?

Information explosion keeps filling the bomb craters with more info!


The infinite storage capacity of the internet combined with the searchability of that growing information resource makes the current information revolution unprecedented and perhaps even mind-altering.

In the past knowledge (and stupidity) had significant confines in the form of printed pages which would eventually be relegated to dusty old stacks in university libraries, used book stores, computer hard disks, etc.

Now, infinite storage combines with social networking and search to pour billions of items online every day and make them searchable and accessible to anybody.

It’s hard – in fact impossible – to know how this will shake out.   Is it too optimistic to hope  that as the online encyclopedia becomes almost totally comprehensive and accessible we’ll find new ways to merge people and information, and this will bring a sort of new age intellectual Renaissance where we dispense with many of the human limitations that make sweeping human progress so elusive?

List of SEO blogs


Aaron Wall’s got one of the best lists of SEO related blogs I’ve run across. Although I think most of the people here know what they are doing I think SEO as a general concept is overrated. There are risks with even moderately aggressive SEO so it’s not clear to me that a business should invest in specialists. Rather in most cases the best approach is to follow the generally accepted good practices and create as large a content footprint as possible.

Hey, here’s another list of SEO blogs 

Aaron’s reply is such a good point I’m going to change my advice and suggest that sites should either get some SEO advice or assign people in-house to review the wealth of *mostly* accurate SEO advice online.

  1. Until you really dig into them it is hard to appreciate how bad off the SEO is even on some of the leading authoritative sites on the web. For many companies SEO isn’t just about taking chances, but is also about minimizing risks and using the assets you have. Sometimes an external consultant is necessary to get a frame of thought to be able to move through a large corporation.Obviously given my brand and market position I have to state that I think SEO is good stuff, but I think there are lots of way to bake SEO into your marketing plan that cost little extra in terms of time or effort, but can deliver large returns. Comment by aaron wall | October 22, 2006

    Aaron that is such a good point I’ll change my advice. It is clear that many companies, even some huge ones, are ignoring even the most basic aspects of optimizing websites. I agree the money they lose due to this is perhaps even hundreds of times what they would pay to have *you* review their site and suggest changes, and thousands of times what they’d pay to buy your excellent SEO Book.

    Part of the challenge I’m talking about however are the growing number of bogus “SEO Specialists”, online SEO scams, and even folks working at the big SEO companies who suck. I ran an interesting experiment last year with a very prominent SEO firm. They did “good” work but it did not boost my traffic and I realized I would likely do better myself simply adding, for example, a blog and more content.

The Gadget Revolution. Gadgets of the world, UNITE!


A nice ZDnet interview with Google’s Adam Sah suggests the increasing importance gadgets will play in the online landscape. I met a brilliantly enthusiastic Adam at Mashup Camp back in February when all this was just starting to take off and it’s great to see Google is now allowing the gadgets to be used on any website.

In March, at Microsoft’s MIX06, the innovative LIVE team was also very bullish on their LIVE Gadgets which clearly are destined to become a major focus over there as well.

Gadgets create some very interesting complications in terms of website stats and monetization. Google has not focused on monetizing this environment yet and it will be interesting to see how they approach that, though it’s easy to predict they’ll create some revenue share with the gadget publisher to keep everybody happy.

The legal fun may come from compatibility issues with IE7 and Vista. Microsoft would have some incentive to prefer their own sidebar gadgets, which will run on the Vista Desktop, to whatever Google gadgets are developed for that same niche. Yet Google as always is ahead of the marketing curve. Pushing gadgets to be compatible with websites, and not just those with Google desktop installed, may diminish what would have been a big MS advantage with Vista.

Hey – that’s a bit too cynical on my part – I think as they often have done Google is just expanding on a great concept that happens to be a good marketing route as well.

Google Gorg replacing Microsoft Borg? Don’t be P/E vil?


Chris “Factory Joe” Messina of Flock has a provocative post about how Google is …. continuing to take over the internet world.

Although I’m more concerned about the virtual monopoly on search rather than Google’s assualt on Microsoft’s virtual monopoly on operating systems and office applications, everybody is well served to start thinking, as Voltaire sort of suggested hundreds of years ago “Is an all-Google world the best of all possible worlds?”

The answer, of course, is NO. Google’s brought great stuff and should keep on bringing great stuff. Google’s been rewarded with almost unimaginable riches and that’s fine. It may even be true that the Google juggernaut has some juggernauting to do before it needs to be brought in check. Sometimes it’s great to let super clever people just run with things until they run out of steam.

But like Chris I think it’s now clear that stock prices and commercial considerations have considerable influence on Google and their decisions and operations. You don’t have to think Google is running around intentionally doing monopolistic things to worry that if the going gets tougher and they no longer have so much of the search market and are fighting to maintain the stock Price Earnings ratios and options values the “don’t be evil” mantra may be interpreted more as “don’t be P/Evil-keep Google on top”! Wait. I think that Mantra change is already under way.

Google is a great company, but as Chris suggests that doesn’t mean we should stop keeping our eyes on them.

Disclaimer: I’m hardly a market mover but should say I do have stock in Google competitor Yahoo and puts on Google because I thought it was overpriced.

DMOZ … heal thyself! Wait, you can’t… you are beyond any criticism.


Well, after about 10 requests at least I got a reply from DMOZ , the ironically named “Open Directory Project”.  Usually requests to become an editor, or comments, or requests for site corrections or additions to this influential but seriously broken directory simply vanish or get scant treatment. At least this time somebody wrote to me:
I politely request that you do not reapply”

The irony of DMOZ is that they so persistently fail to choose a course to fix the directory, now riddled with bad links, old links, and opportunistic editing. The fix would simply involve accepting more well qualified editor candidates combined with using a more transparent and more PLIGG/DIGG like approach to screening editors and sites (so they could process the huge volume of submissions and corrections effectively).

Yet DMOZ seems to spend much of their time just rejecting editors and defending the project. Over at WebmasterWorld I’ve seen threads with long, careful posts devoted to nothing other than persistent arguing about the merits of DMOZ’s frustratingly inefficient approaches. I’m guessing my posts over there critical of DMOZ’s glaring inadequacies are what got me nixed as an editor.

Would I be a competent Travel Editor for a subcategory of “Oregon Travel”? Seems reasonable given that I’ve worked in the online travel field for over 15 years, have extensive contacts and knowledge of the online landscape in Oregon, and have a Masters of Science in Social Sciences with extensive tourism and online research in my academic and professional background. Yet I’m informed by DMOZ that I’m not worthy because I have …. criticized their project.

The (unsigned) and bipolar reply to my request to be an editor:

Your willingness to volunteer is greatly appreciated and perhaps we will be
able to utilize your talent in the future.
Regards,
The Open Directory Project

Reviewer Comments:
Dear Joseph,
Thank you very much for your application and your interest in the ODP.
However, I feel that given the negative views you appear to have of the project, that this probably isn’t the right hobby for you.
I politely request that you do not reapply,
Kind Regards, [ the email was not signed]

Yahoo – maybe they should change the exclamation point from ! to ?


It’s getting harder to be bullish on Yahoo even though I personally remain bullish on their long term prospects. Yahoo remains the number one website in the world, the number one video streaming site, and has the best and coolest picture posting community (Flickr). Yahoo has the best understanding and support for the new web aka “Web 2.0” and a robust developer network.

SO WHAT’S the PROBLEM YAHOO ?

Unfortunately for Yahoo and for shareholder me, Google and not Yahoo has been the overwhelming beneficiary of the swelling pots of online advertising money. Google’s contextual matching of websites and searches to advertisements has yielded better returns for publishers and advertisers, creating a very profitable win-win scenario that has made Google the hottest advertising agency…whoops I mean technology company, in history.

Yahoo’s Panama was released yesterday and may help reduce the contextual matching advantage Google has enjoyed for years.

Wall Street doesn’t seem impressed so far, but what do they know anyway?

Online Sheep get the revenue shaft. Hey Google, when you gonna show *Average Joe’s* the money rather than Rupert Murdoch?


Business week is fretting over how Google will monetize the YouTube content and whether they’ll share with Myspace owners News Corp. Myspace users have embedded tons of YouTube video content in their personal pages so this is potentially a big stream of cash for somebody. Poor Rupert Murdoch doesn’t have enough money as it is, so heaven forbid that the content producers or the users would be put first in line for a piece of the action that *they generate*.

Business Week:
Google could soon have the ability to stream ads to MySpace users who are viewing YouTube videos embedded onto their MySpace pages. The question is whether News Corp. will get a slice of that revenue, and if so, how much …

I think a more relevant question is how much of that revenue should go to those generating the content and the billion daily page views.

Sites (like Google) are doing a fine job of making it possible for Average Joe’s to find the web pages of other Average Joe’s over at Myspace who in turn does a fine job helping people build silly pages filled with videos and images from other infrastructure sites like Flickr and Youtube. They should be well compensated for this and I think 25% is a good number, with 75% of the total revenue generated going to the “users” who are generating all that content and all those page views.

“Professional” users like me already get a piece of the action from Google – about 60-70% of the ad revenue I generate at my websites comes back to me via Google Adsense payments, and I think that’s probably a fine relationship. At least until Yahoo or MSN wake up to the fact they can jump start their contextual advertising services with a temporary 100% revenue share with publishers. Then I, and a large chunk of the 43% of Google’s Adsense Revenue, will be jumping ship. Booking services only give me about 50% of the commissions I generate but that’ll trend upwards over time (ha – it used to be only 20% revenue sharing).

However it’s very intriguing how the big players in the mega money deals leave out the key people in the equation – the Average Joe user. Part of that is simply scale. An average myspace user is only generating nickels and dimes (literally) per month in ad revenue. Collectively it’s a truckload of money but individually not much and Myspace does provide a good service to the user. Win Win? Maybe, but I think the trend will be towards people valuing their own content and their eyeball time more selfishly than they do right now.

The problem with all this great people-generated content — clearly the heart and soul of the new internet — is that the people generating it are getting left in the revenue dust. There are exceptions who manage to turn a few bucks here and there from the crumbs dropped by the mega monetizers like Google, but the average Joe who blogs and posts pictures and has a Myspace page with his Youtube videos gets nothing but the use of the online tools. That searchability and infrastructure is worth something. Arguably it’s worth a lot and clearly Average Joe is happy so far getting sh** for all his content effort.

However, I think over time Average Joe will become more demanding, perhaps even having the audacity to suggest that the collective fruits of all that online labor should be shared not just among Google and friends, but shared with those who watch it all and who make it all worth watching.