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J. Edgar Google: Information Is Power + No Accountability

Kudos to Danny Dover's tremendous seomoz.org post: "The evil side of Google? Exploring Google's user data collection" where he comprehensively assembles all the types of personally-sensitive-information that Google routinely collects on Internet and Google users.

  • Mr. Dover also exhibits exceptional clarity of thought in describing Google as "first and foremost a data company" despite conventional wisdom that describes Google as a search engine company or despite Google's description of themselves...as a technology company. 

Why is J. Edgar Hoover/J. Edgar Google an apt analogy? 

Conflicted Google is crushing it's third party accountability -- ComScore payback?

In entering the web measurement business for free, Google is literally killing many birds with one stone -- ComScore, Nielsen, Google's third party accountability, and any notion that Google does not have a badly conflicted business model. 

The Wall Street Journal article by Emily Steel: "Google to offer tool to measure web hits" is a solid and illuminating article that starts to get at the serious conflicts of interest at work here.

First, did any of you connect the dots that Google's press leak crushed ComScore's stock today (which is down over 20% at this writing) ... the same ComScore that investors used to drive Google's stock down in 1Q08 out of fear that click rates were down with the economy?

Great piece on academic's concerns about Google's influence -- in Boston Globe

Drake Bennett of Boston Globe did a great job of highlighting some fresh new concerns about Google's extraordinary influence that I had not heard before -- see "Stopping Google."

  • Here's the conclusion of the piece in order to encourage you to read the whole article:
    • "But there is a reason "Google" has become a verb: Google has so outpaced its rivals that it has begun to look like a monopoly, a necessity where users have only one real option. And the more we come to rely on Google, the more Google may have to listen to the rest of us."

 

 

Google Adwords discriminating against small businesses for slow loading?

In thinking about my recent post about how Google Adwords now formally discriminate against slower-loading sites by raising their minimum bidding price, I realized that small businesses and the "long tail" are probably most hurt the most by Google's new "quality score" policy.

  • As I previously explained, Google has a subjective, non-transparent, non-auditable, or non-appealable "quality score" variable whose purpose is to maximize Google's revenue -- not to award the keyword to the highest bidder.

This new Google policy discriminates most heavily against small businesses because they:

Flagging the new Palatnik Factor Blog on online marketing

Pablo Palatnik, an online marketing expert, recently launched his own blog, the Palatnik Factor which I recommend; Pablo is also a contributing writer for the Search Engine Journal -- which is where I came accross his work when he wrote a dead on piece questioning "Google Adword's Quality score: affilitates worst nightmare." 

A couple of my recent pieces are particularly relevant to online marketers:

http://www.precursorblog.com/content/why-not-a-marketer-bill-rights-google-yahoo-cartel

Google Adwords not neutral -- charging more for slow loading sites

Google AdWords announced a new net neutrality double-standard that may also be an anti-competitive practice, in that Google will start discriminating against slower-loading websites by charging them higher prices. 

Google CEO: 'The One Sentence Manager' accountability system

I had to chuckle when Google CEO Dr. Schmidt publicly explained his management system for Google last week -- I 've dubbed it -- 'The One Sentence Manager.'  

  • In a speech to Washington insiders at the Economic Club where Dr. Schmidt exhorted how the world could learn a lot from Google's "scalable values"...
    • Dr. Schmidt actually admitted how hard it was to get Googlers to be accountable to his minimalist automated reporting requirement of writing a one-sentence summary by email of what that person did that week.
      • He further explained that his automated system would "harass" the people with ever increasingly funny prods -- until they complied.

Anyone who reads my blog regularly knows one of my pet beefs about Google is how completely unaccountable Google is and how they go out of their way to remain unaccountable to anyone or anything.

Google taking share despite revenue decline in Internet advertising -- new IAB report

Google took substantial market share from their Internet advertising competitors in 1Q08. Google's U.S. Internet advertising revenue grew ~7% sequentially from 4Q07 to 1Q08, while the Internet advertising revenues of Google's competitors fell ~8% during that same period, per newly released IAB figures and Google's 4Q08 figures.  

Why not a Marketer Bill of Rights for the Google-Yahoo Cartel?

To the extent Google and Yahoo's new partnership in search and display advertising diminishes #2 Yahoo's viability to competitively discipline #1 Google's dominance of search and online advertising, online marketers and advertisers need Google-Yahoo to commit to respect a "Marketer Bill of Rights."

  • Google-Yahoo jointly control:
    • 83% of U.S. search advertising share per eMarketer; and
    • 64% of all U.S. Internet advertising revenue per the IAB.
  • Google's has ~1,000,000 advertisers in its network, compared to Yahoo's ~300,000 and Microsoft's ~75,000.

Marketer's Bill of Rights for the Google-Yahoo Cartel:

U.S. marketers do not currently enjoy, but should have the right to:

Google-Yahoo partnership: Not if, but when it becomes anti-competitive

The new Google-Yahoo partnership to better converge the search and display markets is skating on thin antitrust ice that will only get thinner over time -- unless Microsoft or some unknown competitor somehow starts taking lots of market share from the new Goohoo. 

What are the important takeaways here? 

First, at core, the Google-Yahoo partnership is clearly about trying to snuff out Microsoft as a competitive force on the web. 

Q&A One Pager Debunking Net Neutrality Myths