Amateurs vs Professionals & Advertising vs Content

Brett Tabke recently created a supporter's only thread about the potential downfall of blog ad networks, claiming that they may end up undermining our ability to trust what we read. Bill Hartzer (who I am generally a big fan of) added

There are still unbiased sources out there, you just have to look for them.

I responded to the thread with (roughly) the following (edited on my blog for better formatting and grammar, and I added more depth to my opinions here):

There is no such thing as an unbiased source. Unbiased = unreal.

I think as user / consumer is transferred into a market participant beyond just what they consume that we will

  • see our own influence (and influences) better

  • take better care of our attention
  • be more likely to find things we are passionate in
  • get better at judging the intent of others
  • generally trust most things we see less.

While on the surface it is easy to paint that lack of trust as a negative thing, I think a lack of trust toward authority (ie: questioning what you see, why you were shown it, and who placed it there) is an important component in any functional society.

The only reason that learning to not trust what you see is a negative is because there is so much fraud in the world perpetrated by power source who only retain power through the ignorance of the average citizen. Why are most articles in the mainstream media about SEO usually focused on black hat techniques? Anything that challenges any established authority system is deemed to be wrong by default, especially when evaluated by existing sources of power.

Would I have joined the military if I knew more about the military industrial complex? Not a snowball's chance in hell. Should I be quiet about them doing illegal things like destroying some of my work records prior to processing me out of the military? Not a snowball's chance in hell.

I believe consumer generated media will transfer power away from macro-parasites toward creative and passionate individuals who are driven to change the world.

I also think that anyone who communicates, even if only for themselves, is selling something...even if that potential gain is just trying to understand our own faults and why we think the way we do.

On another front, which is more ethical and legitimate? Blindly trusting an ad system that promotes products you know nothing about and is pushed to no end by the goal of achieving an efficient market. Or, writing about things you know about, and occasionally getting paid for the value of your time, feedback, and influence?

How relevant is a Google AdLink with my name and brand name in it that links to a list of ads that does not even include me? How is that any more legitimate than getting paid to review things you find interesting?

Some of my other blogs have no commercial intent to them, but they still rank for a lot of things, and I still learn a bunch from other's feedback, and I also think I learn a lot about myself by reading how I was thinking when I was doing different things.

The biggest thing that is killing off traditional publishing is the lack of personality, lack of passion, and a lack of bias (or watered down pro corporate bias) which is contained in nearly every piece of content they create.

I would rather read a passionate author than one that abides by some arbitrarily crafted ethical standards. Would a newspaper ever publish a self analysis like this? No. And if I read a person long enough I can understand their biases much greater than I can by reading random published articles. And if earning the trust of readers is harder then it will be valued more.

The big reason that people are against open networks, paid placement, free markets, paying individuals what they are worth, or anything that redistributes power is that many of the most powerful sources in the world stand to lose power if we question authority. And so they must play down the roll of or try to undermine the credibility of competing business models (or anything that threatens the ideology they sell or their business model). Nothing new there, it has been going on forever (even if the sources of power do not hold themselves to the same standards they want to hold amateurs to).

The Market Can Never Get Too Efficient

Yahoo! announced they are launching their new Panama platform. In response, Google quietly announced they are launching a free multivariable testing program which ties in with AdWords. Each additional functionality Google can add to their ad system further solifies their market knowledge and their position as the default ad platform. If they are the default ad platform that advertisers turn to, it will mean that their ads will sell closer to their fair market prices and Google will be able to afford more distribution, both of which in turn will attract more advertisers and may price many types of ad noise out of the market. The efficiency and market position feeds into itself.

Backward Links & Forward Links

Microsoft recently announced the ability to research what pages a domain links at. For example, see what pages this site links at using LinkFromDomain:SEOBook.com. You can also use their advanced search features in combination with LinkFromDomain to look for links pointing at domains within a specific geograph region, and / or adjust the result order by popularity and freshness.

As most seasoned SEOs knows, Google gives sucky inbound linkage data. You still can get a decent sample of recent inbound linkage data from the Google BlogSearch link function though. For example, here are recent blog posts linking at SEOBook.com. Technorati provides similar linkage data.

You can get a more comprehensive view of linkage data using Yahoo! Site Explorer.

I plan on updating SEO for Firefox to include the LinkFromDomain feature and check if URLs are linked from the Wikipedia.

In addition to all of these forward and backward link tools many video content sites and social bookmarking programs allow you to use other's work to explore interesting items, which sorta brings the fun back to the web...finding all kinds of cool stuff.

As technology evolves, and more users become editors, the value of being a general editor will be commoditized to nothing unless you work long hours, have a community helping you, are heavily biased, passionate, or can add some other significant value to the information you consume and sort. But if you are an agressive marketer being able to sort through information so many different ways makes the job much more fun because it gives you so many options.

Inadequacy & the Chance to Change

People pay a lot of money for the chance to change. Often they pay for a chance to place the blame on another party because they were unwilling to change (ie: that diet program didn't work). A large part of the reason why so many prescription drugs are popular is because drug sales pitches convince us that we can change without actually changing, though that is rarely the case. Typically the side effects are just suppressed or played down.

In much the same way that people think a drug will make things better, we are constantly pushed value systems which make us think things like:

  • I am too fat. If I weighed 20 pounds less I would be happier.

  • I am too poor. If I just had more money everything would work out.
  • I am too lonely. If I just had someone that loved me maybe life would make sense.
  • I am too shy. If I just had more confidence and talked to more people I could figure life out.

Part of the reason self help programs from people who suffered from the same problem work so well is that they are easy to identify with. The more people believe you felt their struggle or pain the more they will believe that you can help them get past it.

A large part of the reasons that many of these programs never lead to happiness is that they solve symptoms instead of problems. Many of them focus on what not to do, instead of what you should do. Inadequacy is just part of being human, but many companies create products or services which claim cure us of the flaws of being. When we buy into these systems, we are not just buying into the product / program / service, but we are buying into the pot of gold at the other end of the rainbow. The belief that things can be different and better, and the sense of relief that brings. Wherever there is a real or manufactured sense of inadequacy there is a large targeted market.

People trying to change social classes and win approval of established members of their community are also likely to pick up the domain specific language and symbols better because they will feel that learning it is an important sign of sophistication. If you can create things which people new to your industry would consider vital (rules, standards, regulations, ethical guidelines, etc.) naive people will push them until they realize the purpose of them. For example, at one point in time I was sucker enough to proudly display someone else's code of ethics on my site until I realized that all it showed was that I was a sucker ignorant to marketing and my market.

What do you do that makes people feel validated in their quest to change or be validated? How easy is it to identify with your position and spread your way of thinking? Do your customers outgrow that feeling? What do you do next?

If your business model solves problems but is financially inferior to business models that solve symptoms how do you get past that?

What are the most radically worldview changing or inspirational things you have ever done?

Off Targeted Ads as an Opportunity

If you create a site about information retrieval and see medical ads on it that might be a good sign there is a bunch of money in that market.

  • Google's internal AdSense optimization is based on earnings potential. If they give an ad excessive exposure, even on off topic sites, it probably means that the ads stand a good chance of being expensive.

  • If advertisers are buying expensive clicks from off topic sites then they got plenty of budget to blow through.

I am not saying that off topic ads are a great thing long-term, but they might make for an easy way to follow the money trail. If you have any interest in the ad topic then create a few pages about it and test the earnings potential. You might also consider joining a related affiliate program and buying cheap traffic through other ad networks, such as AdBrite.

In case you think this off targeted advertising is a short term condition, consider the following data points...

Recent market size:

The most startling fact about 2002 is that the combined profits for the ten drug companies in the Fortune 500 ($35.9 billion) were more than the profits for all the other 490 businesses put together ($33.7 billion). - Marcia Angell

Future growth prospects:

If medical spending rises to 25% of gross domestic product by 2030, as many economists expect, health care's share of jobs could grow to 15% or 16% of the labor market from today's 12%, based on historical patterns.

Such a shift in employment would require health care to be the single biggest creator of jobs in the economy for the foreseeable future. And while the U.S. could in theory afford to spend 25% of GDP on health care, it's hard to imagine a world in which our children have to choose between working for the local hospital or the local health insurer. - Business Week

Drug companies are off manufacturing diseases to make up for our poor rushed choices and hollow lifestyles:

75 million Americans may have something called metabolic syndrome. How Big Pharma turned obesity into a disease – then invented the drugs to cure it. - Wired

Drug companies sponsor research

The Center for Science in the Public Interest found that 96 percent of the industry-funded efficacy studies of drugs like Prozac, Zoloft, and Paxil in children were positive. That compares to just 63 percent of independently funded studies published in medical journals.
...
If one looks at just published clinical trials that contained a placebo-controlled arm, industry-funded clinicians reported the drugs were effective in 9 out of 10 cases. But among researchers not funded by industry, only 5 out of 9 reported positive results, which is surprisingly low given that other studies have shown that medical journals are biased toward publishing positive reports. By comparison, just 3 of 15 FDA reviews of pediatric antidepressant trials, many of which have not been published, were positive. - Center for Science in the Public Interest

Drug companies market directly to consumers via shady prescribe yourself websites.

And if all the above wasn't scary enough, consider the fraud baked right into the system:

The Justice Department has charged a former chief of the Food and Drug Administration with lying about his ownership of stock in companies regulated by the agency, according to media reports on Monday. The government accused Lester Crawford with falsely reporting that he had sold stock in companies while he continued holding shares in firms governed by FDA rules, the Associated Press reported. - MarketWatch

Marketing Via Free Samples

Seth Godin recently posted the difference between monopolistic businesses and those which actually appreciate their customers.

If you think about buying more marketing but have holes in the conversion process eventually you are going to get priced out of the market. Sure free samples may be a cost, but it is probably some of the cheapest marketing available, because free samples help you build trust and increase conversion rates by associating your brand with the product your customers want while they are actively looking for it - in a sense it is like an enhanced feature rich version of search. If giving away a sample costs $20 and samples lead to a 10% conversion rate, how does that compare to buying clicks at $2 each and ending up with a 1% conversion rate? If you do the math both of those will lead to a $200 cost per action, but one of them requires you to deal with far fewer people, and will be far more scalable, because any market is limited in size.

Popular bloggers that use their blogs to sell a book (maybe like me) sell many books or ebooks because their blogs keep the attention of potential clients and posts act as free samples. The beautiful thing about selling or giving away information is that there is an unlimited number of new things you can do or say, and an even larger number of ways to restate old thoughts or repackage old ideas. I still have at least a half dozen projects I really want to do soon, and rather than waiting on what to do there is always something I could be doing.

Getting people to pay attention is a cost. People not only convert better when given free samples, but free samples give people something to talk about and link at. If you are trying to build a brand from scratch and sell information then making piracy easy might be the difference between a successful business model and a failed brand that never got much exposure.

Branding and search relevancy are both largely about building mindshare. If you have no free samples, and expect people to take the plunge buying from an unknown source, you are going to need a rather compelling offer or a lot of hype to make many sales. Or you can take the desperate act of trying to win out on pricing, but in most cases that does not make for a sustainable long-term business model. Plus if you build significant trust you not only lower your marketing costs, but you can also increase your prices and expand your margins.

The Role of Passion in Marketing

I recently posted that I thought almost any successful marketer could be defined as a spammer at some point in time. The main point was that to be successful, you have to be willing to live outside of other's boundaries, and be willing to accept arbitrary labels people will throw at you for doing so. But that is not to say that everyone will succeed ONLY by spamming. I got an email today from a guy who was down and out. I got a call yesterday from another guy who seemed to be in a similar market position. The biggest commonality I notice amongst people who seem like they want to do well but are not is that they either lack focus or passion. If you are passionate about a topic it is much easier to stay focused and avoid burnout.

WebmasterWorld recently had a thread about authority which has a number of great quotes in it.

whitenight:

So for most people, an authority site is built as a labor of love on the subject.
It's that "This is the site I wanted to find on the subject when I was looking for info, but couldn't" mindset.

MikeNoLastName, being a contrarian with the thread theme, stated:

So NO I do not agree that the internet is anymore (if it ever truly was) the great playing field leveler that many still believe it is. Perhaps, for a while you'll out-fox your bigger competitors by knowing more about SEO, at least until they wise up to the potential and hire a whole staff of SEOs, but in the end it will still be who is a better business organizer and who can afford to throw more marketing money in the ad buying pot, which is greatly encouraged by the likes of G & Y.

In some cases Mike is right, but Google just bought YouTube for $1.65 billion, which shows that the underdog can beat the giant. In most cases they probably do, as long as they are truly passionate about the topic. If a person lacks passion then they are typically far easier to steamroll over though. Why?

There are people spending $5K to $100K+ a day on arbitrage or spamming. If you try to compete just on numbers and are starting with a smaller chip stack you are fighting an uphill battle.

That same WMW thread linked back to an old Googleguy comment:

Of course, folks never know when we're going to adjust our scoring. It's pretty easy to spot domains that are hoarding PageRank; that can be just another factor in scoring. If you work really hard to boost your authority-like score while trying to minimize your hub-like score, that sets your site apart from most domains. Just something to bear in mind.
...
Let me clarify that last post a smidge. You can try all sorts of stuff to "conserve PageRank," but that's no guarantee that something will work, or that it will work in the future.

If you lack passion then you may feel you have to get something before you give anything out. If you are passionate about a topic it is much easier to become a platform.

Not only is it easier for passionate people to become topical platforms, but if you are passionate

  • you are more likely to want to understand what ideas are important (and why)

  • you are more likely to see what ideas are spreading
  • you are more likely to see why ideas are spreading

And as a net result of those you are more likely to be able to create ideas that will spread. When you start seeing things like unrequested quality links, mentions on high quality sites, or other people saying I wish I would have thought of that it means you are on the right path.

Once you learn how ideas spread in one market it is easy to apply that line of thinking to quickly analyze another market.

So how does the passion bit relate to the spamming stuff I mentioned at the top of the post?

  • The more passionate you are the easier it is to create signs of quality and the more people will trust you.

  • People trusting you means you will do well even if you temporarily fall out of graces with the search engines.
  • The less effort you have to put in to build your backlink profile the more likely your site is to look like a natural part of the web.
  • Many authority sites started out as hubs.
  • Sites with more signs of quality can get away with doing a lot more shady things (or accidentally screwing up lots of things) while still being in the realm of normalcy.

Directory Archives Update

I have sorta let the Directory Archives site go to crap (ie: be poorly maintained) for a number of reasons. I still like many of the better directories (like Yahoo!, DMOZ, Business.com, MSN Small Business Directory, BOTW, Gimpsy, JoeAnt), but outside of the top few general directories and a few high quality niche specific directories most directories probably do not pack much of a punch at manipulating Google's search results or delivering direct traffic. Given the flood of low quality directories, and their lesser value in manipulating search, I have not put as much emphasis on my directory of directories. All the following reasons play part in its reduced priority status:

  • Most directories are of limited quality. Building a high quality one is an expensive and time consuming process, and most of the people who have been creating directories over the last few years have not been concerned with quality. Most of them have been selling hollow PageRank to naive webmasters.

  • Search engines (especially Google) have limited the effectiveness of many low quality links, in some cases not only deweighting the value of low quality links, but if you have too high of a junk to quality link ration they may throw ranking penalties on your site or reduce your crawl depth or crawl priority. The reduced crawl depth and crawl priority (based on low quality inlinks and outlinks and duplicate content issues) also hit many of the directories themselves, causing many of their pages to be deindexed.
  • Social sites and consumer generated media add much more context to links than most directories do.
  • Social bookmarking sites have limited editorial costs and a huge number of editors, thus they are more comprehensive than most directories are, while having much higher profit margins.
  • So many people are blogging that if you can create something legitimately useful and get it a bit of exposure via your own blog or via the social sites then it is bound to pick up many high quality links.
  • Improving search relevancy coupled with this additional content makes directories less necessary. Various niche blogs, the Wikipedia, and other authoritative social sites have largely replaced most directories in the search results, thus reducing the direct traffic most directories send to listed websites.
  • Using the social sites is often a cheaper and more effective way of building a natural and diverse high quality backlink profile than by trying to build links from some of the lower quality directories. The social sites often lead to many secondary citations.

Rather than just killing off Directory Archives I added a social news and bookmarking section to it, such that it can still be used to help webmasters acquire good links and market their websites. In addition to listing social bookmarking and news sites it also has categories for sites like Squidoo and Work.com.

Dave Taylor's Great Blogging Video

Dave Taylor recently spoke about blogging at Affiliate Summit. Dave posted the video online here. It is a nice introduction to blogging for those who want to understand the benefits of blogging and how it can help improve their businesses.

Google Outdistancing Yahoo! in Monetizing Branded SERPs

Yahoo! tends to be a bit more cautious than Google when it comes to allowing trademark related ads. That significantly suppresses their earnings because brand related search queries are often some of the most targeted, most commercial, highest converting, and most expensive keywords. Here is a snapshot of the current search results for SEO Book. Notice that the top 8 organic results link to SEO Book.com. By loosening up on subdomains (displaying them more frequently) and providing a mini site map (called Sitelinks) in the SERPs it makes it much harder for affiliates or merchants reselling a brand to get exposure through the organic search results for the core brand name.

There are two pieces to that, as well.

  1. If the top 5 or 6 search results point at the official site searchers have to scroll down quite a bit to find commercial search results outside of the core brand. Rather than scrolling they may be more likely to click an ad.

  2. If the search results look highly informational in nature (by being harder to manipulate via commercial bias, and Google over-representing the official site) then merchants are more likely to buy ads.

The brutal part with buying the ads is that sometimes Google shows 0, 1, 2, or 3 AdWords ads above the organic search results. If the organic search results are somewhat irrelevant to the commercial intent of a searcher, those few ads at the top of the search results are going to get a high clickthrough rate. If you are a merchant who is not featured at the top of the results the right rail ads will bring you relatively little exposure. Thus a bidding war occurs for those top couple ad spots, and Google can control how many ads to show above the results to maximize earnings.

If you sell an ebook like I do, it is no big deal if one day your sales are high and the next day they are garbage, but if you run a business with fixed costs, a fixed marketing budget, and many employees then you may be stuck paying whatever it takes to be at the top of the results for brands you carry. The more dependant your business is on search the more they can bleed you dry!

While I used my brand as an example in this post, this brand factor recently played a big roll for a client, who even outranks his manufacturer for their official name in some major search engines, but is forced to pay much higher AdWords rates to get any exposure on Google. If he falls out of the top couple ad slots the right rail sends us like 10% the traffic that the top ad positions do. And I am probably going to have to bid bleed about $5 a click for a while to work that client back into the rotation of the ads at the top of the search results. And then if we knock a competing site out of position that may spur on a budget bleeding bidding war. Companies with a fixed marketing budget (my client has a variable budget based on market conditions) will suffer even worse by having to overpay for traffic until they kill their budget, and then not show up the rest of the time.

If the core brand term is priced out of reach it is important to

My client dominates the long tail, but for that particular brand he carries, most of the queries are for the official brand name. As a Google share owner and owner of a strong brand, I think they are brilliant. As a marketer who has a client getting screwed by their setup, I think a bit less of them. ;)

Also worth noting that Yahoo!'s search results are moving toward a more authority based algorithm, and they are starting to double list many brand sites, so this issue will likely rise again soon enough.

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