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Search Engine Payola

Cranial Dome writes: "The top four portals -- MSN, AOL, Yahoo, and Terra Lycos -- all have search results tainted by their acceptance of money for listings, according to this article in the Washington Post. Of the top search engines and portals (including Alta Vista, Inktomi, and Lycos), only Google has vowed to NOT accept money from companies for guaranteed placement in search results. Another reason to love the Google thang."

10 of 282 comments (clear)

  1. As a matter of fact by Ayende+Rahien · · Score: 4, Informative

    Google *does* accept money for putting links.
    The difference is that Google does it in a straight forward way, and marks those links as "Sponsored links".
    You can buy a link on the search of a word for a fairly low price.
    See http://www.google.com/ads/ for the detials.

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    --
    Two witches watched two watches.
    Which witch watched which watch?
  2. How Google Makes Money by zoombat · · Score: 5, Informative
    If you're wondering how Google DOES make money, according to CEO Dr. Eric Schmidt:
    • Half of Google's revenue comes from selling text-based ads that are placed near search results and are related to the topic of the search. Another half of its revenues come from licensing its search technology to companies like Yahoo!.

    That's from a very cool recent interview with him from CNN.
  3. Re:My question is .. by Masem · · Score: 5, Informative
    Google's cash flow is only slightly enhanced by the ad placement (not in the search results, but as boxes on the side). Google's biggest income source is the licensing of their search technology out as intranet solutions. Of late, there was a story about Google's new search-engine-in-box, a rack-mountable, scalable solution for companies looking to search-index all internal documents.

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  4. Re:In other news by albat0r · · Score: 5, Informative

    Products placement and banner ads aren't the samething at all. When you see a banner on a website, you know that's a banner, that someone has paid for it.

    But, when Yahoo|Terra Lycos|MSN|AOL|Inktomi|Alta Vista put in a search result link to websites that that have paid to be listed first, you don't know if it's a "real" result, or if someone has paid to put it their.

    If they put these "sponsored links" like Google does it, it'll be a "clean" way to make advertisment (and money). That's one of the reason why Google is so popular.

  5. here's your answer(s) by jabbo · · Score: 5, Informative

    > How long until the laws of (current) economics
    > catch up with Google, and they can no longer
    > afford to do the right thing?

    It could be quite a while. Google is profitable, and the click-through rate on the ads that you *CAN* purchase from them (clearly demarcated as ads) is phenomenal. They're doing fine.

    > Does anyone have any insight into Google's
    > money situation? Where the money comes from?

    Google stays profitable by aggressively negotiating bandwidth from several suppliers. The guy who runs the network there is a former coworker of mine. In fact, I'm logged into his computer right now :-).

    > Are they are taking losses on traffic? Could
    > they economically handle disillutioned surgers
    > from all the other search engines?

    See above. In short, yes, but this depends on the economic climate and the willingness of the networks to play ball.

    > Or is it just that the other search engines
    > will do anything for a buck?

    IMHO, yes.

    Realistically, when was the last time someone asked you to Yahoo! or Altavista their next blind date? Google is a societal totem and if they fell prey to financial weakness, they would be snapped up immediately. John Doerr, Larry Page, and Sergey Brin have not allowed that to happen to their creation. I salute them, and all of my friends and coworkers who went to work for them. It is a great product and makes its own markets.

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  6. Pay-Per-Click Search Listings on Yahoo, et al. by markwelch · · Score: 5, Informative
    Someone asked: "Does anyone actually click on that garbage anyway?"

    The answer is yes, definitely. A well-optimized campaign of paid search terms at Overture (formerly GoTo.com), can result in huge increases in relevant traffic and sales.

    Many search engines, including Google, don't provide relevant information because they are bloated with spam (spoofed web pages, often for porn sites) and they also can't keep up with new submissions (so relevant content never gets indexed). Google certainly remains the best place to find certain types of information, but if you use Google to search for a specific consumer product, you'll get mostly garbage.

    In late 2000, I designed the paid-search strategy for MovieGoods.com, which sells movie posters. We submitted about 450,000 unique search terms (including several variations for each actor/actress name, director, movie title, and movie theme), and GoTo.com approved about 27,000 of them (they won't let you buy a search term unless their records show that it has been searched more than 10 times in the past 90 days).

    Of course, for a company like MovieGoods, a huge portion of traffic comes from people who search for simple terms like "movie poster" (the top ten search terms probably drive 60% of the GoTo/Overture-sourced traffic). But the other 25,000 search terms (like "Fellowship of the Ring movie poster" or "Antonio Banderas posters") drive a lot of sales, and usually at a very low cost.

    For a merchant like MovieGoods, the key is to carefully track the performance of each search term: I determined how many dollars of sales were generated by each search phrase, and how much we spent, and we achieved a simple balance: for every $1 we spent at GoTo/Overture, we generated $6 in sales.

    And consumers also benefitted by finding exactly what they were looking for. Yes, Overture does allow some off-topic bidding, but they are trying to crack down on it so that only genuinely responsive links come up in the paid listings.

    Of course, some consumers ignore the paid results on search engines (including Google, which does sell top-of-list placement and right-margin AdWords, so they are NOT so much holier than the others). But like so many "bad things" on the internet, paid results work for the merchants and often for the consumer.

    There are some interesting issues: for example, if I search for "MovieGoods" and a competitor bids for the #1 position for that term, there are some real concerns. There have even been lawsuits over this issue (really not much different, legally, than the "Meta Keyword" disputes).

    Of course, if the result said "Click Here for MovieGoods" and instead the consumer is misdirected to a competitor (or to a porn site), then it's just not right, but I haven't seen much of this type of abuse (and Overture prohibits it, though as you'd expect they don't check all listings as carefully as some folks would like).

    Also, every major search engine (including Yahoo, Alta Vista, Google, Lycos, and more) is pretty clear at distinguishing the "paid" results from the regular results. Usually the paid listings are in a different font style or size, bold or not, indented differently, or boxed to stand apart from other results.

    Finally, note that on many search engines, there are multiple paid-placement opportunities. For example, on Yahoo, there are pay-per-click results from Overture, then there are paid "sponsored links," and then there are the "most popular links" which generally are the paid sponsors since the sponsor links are shown first and thus get clicked most often. On Google, there are left-margin "AdWords" as well as top-of-list placements. And everybody sells banner ads and often buttons also.

    These days, most of my time is spent on designing "cost-effective marketing" campaigns, with strong emphasis on optimizing paid-search-engine placements, affiliate programs, and of course traditional search-engine-optimization strategies.

    The key is that I can achieve that $5 return on every dollar spent on these strategies, but banner ads and other types of advertising rarely return even $2 in sales for every dollar spent (and often the return is pennies on the dollar). That explains why banner ad rates have plummetted so far, so fast. And it explains why the content-versus-advertising borders are getting fuzzier.

    (Here on Slashdot, people complain all the time about those FatBrain links in book reviews, which will vanish in a day or two since B&N acquired FatBrain and is discontinuing the generous FatBrain affiliate program.)

    -- Mark J. Welch, Internet Performance Marketing Consultant
    -- http://www.MarkWelch.com/consult.htm

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    -- http://www.MarkWelch.com/ Pleasanton California
  7. Re:Google's Sponsored Links by RollingThunder · · Score: 4, Informative

    Sneaky?
    Almost identical?

    You seriously need to get your eyes checked.

    A sponsored ad (specifically the search you mention) is:
    - in bold
    - two lines
    - says SPONSORED LINK on the right
    - no Description
    - no Category
    - no size
    - no spider date
    - no cached

    a real search result is:
    - not in bold
    - at least five lines
    - contains the segment of text off the site with the keyword higlighted
    - does NOT say sponsored link
    - can have a Description
    - can have a Category
    - has a document size
    - has a spider date
    - has a cached link

    I suppose if your definition of "similar" is "they both use alphanumeric characters", then you're right, but I suggest that definition is a bit too wide.

  8. Re:Motherfucker! by chrysalis · · Score: 4, Informative

    I just work there as a sysadmin, I didn't know they were spamming when I got hired. They also don't support free software although they heavily use it. I was fixing a bug in Ticketsmith (a GPL'd ticket tracking system) when the CEO said 'Hey, no. Don't fix that if "they" didn't fix it. We are not there to loose time to work for "them"' .

    Porn sites make a lot of money. But watching porn movies all the day probably destroys their mind.


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  9. Scientology knows how to manipulate Google by turambar386 · · Score: 5, Informative

    Google may not accept payment for placement, but at least one unscrupulous organization knows how to manipulate their way to the top of search results.

    The cult of L. Ron Hubbard has managed to keep all critical sites off of the first page of search results for "scientology" using a vast web of cookie-cutter home pages and domain names all linking to one another.

    Check this out for a full description of how they did it.

  10. Re:Google doesn't accept money, but accepts cheate by chrysalis · · Score: 5, Informative

    The magic of search engines is that you don't need to submit 1000 links to have them referenced. You submit 10, and Google will crawl the 1000 for you.

    But yes, all our domains resolve to 10 IPs among three C classes. There's probably a way for search engines to detect too many loops between different sites that resolves to the same IP, and I hope Google will implement that.

    But well... It's just like any form of SPAM. We have mail filters that check RFC conformance, keywords, RBL lists, etc. but we still get more and more mail spam, because spammers use more and more sophisticated software. It's an endless fight. This is really lousy and it degrades the whole internet.


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