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Google's Insular Nature

stockpicker_dude_78 writes "Robert Cringley has written a thought-provoking article on Google's insular nature, and compares them to the similar environment at Microsoft." From the article: "Google is secretive. This started as a deliberate marketing mystique, but endures today more as a really annoying company habit. Google folks don't understand why the rest of us have a problem with this, but then Google folks aren't like you and me. The result of this secrecy and Google's 'almighty algorithm' mentality is that the company makes changes -- and mistakes -- without informing its customers or even doing all that much to correct the problems."

36 of 188 comments (clear)

  1. Wherefore art thou Google by packetmon · · Score: 4, Insightful

    Motley Fool staffers are just now realizing that Google is slowly running out of gas. Perhaps all this clickfraud exposure is leaving people wondering how could they get away with this Internet ponzi scam for so long... Luckily Google got a little smarter and quieted the naysayers a bit by doing the MS thing and buying all the competition around them. Smart move. MS bought all threats and consumed them into the heap of junk calls Windows. Google is doing the same slowly via different angles (Skype, Writely ... which competes with MS' Word, Andriod, etc). Anyhow, since its all opinionated, I wonder when will Google's true adclick fraud will truly come to fruition... Experts estimate the true value of what Google would owe would be a couple of BILLION in clickfraud.

    1. Re:Wherefore art thou Google by kesuki · · Score: 3, Insightful

      the problems is that the 'clickthru' model of advertising is fundamentally flawed. if you're company X with so many billions of dollars and hundreds of thousands of employees, and some competitor is advertising on google and yit's costing your company money, you just pay a few minimum wage flunkies to just click competitors ads so they 'go away' with television etc, the cost is all based on how many people are going to see the ad.

      impression counts aren't perfect either, since a similar strategy can be used to make them go away, but usually click thru models cost an order of margin more than impression models, since 99% of people on the internet just ignore the ads. thus it should take almost 100 times as many people being paid to make a 'impression' model advert 'simply go away' that factor means that anything short of a massive botnet swarm would be incapable of taking out the adverts of a large corporation like mcdonalds or coca cola.

      I guess the bulk mail industry would just have a new side business to increase their profit margins, to compensate for the loss of 'clickthru' revenues from the popups on their botnet slaves.

    2. Re:Wherefore art thou Google by timeOday · · Score: 2, Insightful

      A guy I know runs a successful online business and does advertise with google. I don't think he really cares how many "impressions" he's buying... he pays because buying the ads increases his sales. Businesses are smart enough to focus on the bottom line, so I think the effect of click-fraud is already reflected in advertising rates.

  2. Oh noes! Google trys to make monies! by grammar+fascist · · Score: 5, Insightful

    From the article:

    Google attracts advertisers like Luis with the idea that their ads will be cheaper because, frankly, they are selling something that is only thinly traded. The dream is that the system scales and scales fairly, only it isn't fair at all because if Amazon wants to advertise an equation editor USING EXACTLY THE SAME AD TEXT AND FORMATTING AS LUIS -- their words will cost 100 times less than the same words bought by Luis. It's not that Amazon (or any other big Google advertiser) has better copy writers, it is just that they sell a broader range of things.

    "A large percentage of impressions & clicks do have £0.01 minimum bids," said Jeff from Google, "but these are our very highest quality ads/advertisers."

    In other words, the minimum word price is 1p, BUT NOT FOR YOU.


    Um, yeah. The same words should be more effective coming from Amazon than from Cringely's friend Luis, because people are simply more likely to click.

    You could run all this through an algorithm that maximizes expected revenue (AI people would call this "utility") for Google based on click probability, and you'd come up with pretty much what Google does.

    I'm sorry. I'm not a Google fanboi, but this is ridiculous.

    --
    I got my Linux laptop at System76.
    1. Re:Oh noes! Google trys to make monies! by grammar+fascist · · Score: 3, Insightful

      Sorry to self-reply, but I just finished the article. Here's the last sentence:

      It all comes down to the AdWords algorithm and its intent, which isn't to help Luis OR Amazon, but to simply maximize profit for Google.

      Why, yes, Cringely, I think you may have just figured it out. Good job, have a gold star, go to the head of the class. You finally passed ECON 101.

      --
      I got my Linux laptop at System76.
    2. Re:Oh noes! Google trys to make monies! by ktappe · · Score: 4, Insightful
      The same words should be more effective coming from Amazon than from Cringely's friend Luis, because people are simply more likely to click.
      Not true at all. In a properly targeted campaign, users would be just as likely to click on either ad. If I Google "equation editor" and Luis' ad pops up, I'm just as likely to click on it as I would be if I Googled "Sonicare" and an Amazon ad for a Sonicare toothbrush pops up. Cringley's highly valid point is that because this likelihood is equal, the cost of the ads should be equal. But Luis is charged hundreds of times more than Amazon for the same efficacy. And I wholeheartedly agree with him that this is unfair.

      -Kurt

      --
      "We can categorically state we have not released man-eating badgers into the area." - UK military spokesman, July 2007
    3. Re:Oh noes! Google trys to make monies! by shmlco · · Score: 3, Insightful

      Whatever happen to the time-honored tradition of "volume discounts"? It's probably not "fair" that Walmart can get better prices on goods than the local mom-and-pop, but they do.

      But in both cases (WM/Google) the cost of doing business with a smaller supplier/advertiser is a higher percentage off the potential income. Spend more with Google, and you get better discounts that reflect that fact you're making them more money with basically the same amount of overhead (billing, etc.).

      --
      Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.
    4. Re:Oh noes! Google trys to make monies! by shmlco · · Score: 4, Insightful

      It all comes down to the AdWords algorithm and its intent, which isn't to help Luis OR Amazon, but to simply maximize profit for Google.

      I think this either/or is leaving a few major participants out of the equation: Google's users.

      Profits notwithstanding, the primary intent of the AdWords algorithm is to provide relevant content to the user, including relevant ads. Present irrelevant content and ads, and the users disappear, and the revenue does likewise..

      --
      Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.
    5. Re:Oh noes! Google trys to make monies! by natophonic · · Score: 4, Insightful
      Profits notwithstanding, the primary intent of the AdWords algorithm is to provide relevant content to the user, including relevant ads.

      Exactly... If I search on 'equation editor latex', I'd rather see
      Equation editor -- Edit science/math equations in LaTex, import to Word
      than
      Low price equation editor at Walmart
      and
      Find antique equation editor at Ebay
      and
      Sexy Latex Bodysuits from Amazon.

      I realize Cringley brought "the rich get richer" silliness into it, but the point is that if Google just whores themselves out to the biggest-budget spenders, they'll alienate the users who found AdWords different and useful compared to the typical web advertising noise.

    6. Re:Oh noes! Google trys to make monies! by Coward+Anonymous · · Score: 2, Insightful

      Your assertion would be correct if Amazon were putting any money on the keywords in question. However, Amazon is not putting any money on the "latex" keyword or on "equation editors". One would think keywords would be priced based on advertiser demand. If no one else is bidding on those words, then Google technically shouldn't even care if Luis is buying them up. The cost for Google is pretty close to nothing.
      As it stands now, Google priced Luis out of advertising which means that if you search for "latex equation editor", you get no "relevant" ads and Google basically eliminated any chance of making money off those keywords.

    7. Re:Oh noes! Google trys to make monies! by Anonymous Coward · · Score: 1, Insightful

      Then you aren't like me. If _I_ Google something, and an ad for Amazon.com versus some guy I've never heard of both pop up, I'm far more interested in Amazon.com. In that sense, Google can maximize their revenue by giving users what they're more likely to click on--which is, IMO, exactly what they're doing.

  3. The subject by daybot · · Score: 3, Insightful
    Um, isn't this an article on AdSense whose introduction mentions the insular nature of the company?

    I know it sucks for the small guy, but the way AdSense works is logical and good for the consumer. Previously it was not enough clicks = irrelevant ad = no more ad impressions. Now it's not enough clicks = irrelevant ad = higher price. Both solutions make, er, (ad)sense.

  4. I have never had a problem. by elgee · · Score: 3, Insightful

    I have never had a problem with Microsoft or Google. Are they perfect? Of cousre not. And yes, I have worked with a LOT of operating systems over the many years I have dealt with computers. I think that success always attracts the detractors.

    Pardon any mispellings. I have been hitting the Newcastle Brown Ale a bit much.

  5. The point? by ivan1011001 · · Score: 1, Insightful

    This article is not an in-depth analysis of Google's business practices so much as it is one man complaining about two or three bad expereinces he has had with Google.

    This doesn't mean that Google is secretive or paranoid, just that Google is a large corporation. Corporatoins are not perfect, just like their legal equivalent.

    Why is this news?

    --

    I was thinking of converting to paganism, but where the hell can you find sacrificial virgins these days?
  6. Doesn't pass my smell test as an investment by NotQuiteReal · · Score: 2, Insightful
    Seems like another dot-bomb in the making.

    Not totally, if you were in early (IPO) you made money, but not now.

    Look, I use Google all the time... but I fail to see how they make one dime from me.

    By contrast, take eBay. I use them too -- at least I can see how they have directly made a few hundred bucks from me over the last few years, for services rendered.

    ebay is 2/3 the price of goog (P/E ratios), so, right off the bat, goog stock ought to drop $100 USD just to be priced similar to eBay... then, maybe both of the aforementioned stocks could drop in value by half again, just to be priced more in line with other stocks... (P/E 20-ish).

    --
    This issue is a bit more complicated than you think.
    1. Re:Doesn't pass my smell test as an investment by ktappe · · Score: 2, Insightful
      goog stock ought to drop $100 USD just to be priced similar to eBay... then, maybe both of the aforementioned stocks could drop in value by half again, just to be priced more in line with other stocks... (P/E 20-ish).
      If only logic like this dictated stock prices. But, instead, groupthink and herd mentality seem to be the prime factors in stock price movement. So if you're not much of a follower and don't think like the crowd, you'll tend to get burned in the Market.

      It's a weird world,

      -Kurt

      --
      "We can categorically state we have not released man-eating badgers into the area." - UK military spokesman, July 2007
    2. Re:Doesn't pass my smell test as an investment by Anonymous Coward · · Score: 1, Insightful

      The best company is one that can get money from a consumer and not even have the consumer know that they are giving the company money.

  7. Re:price mystique by rolfwind · · Score: 4, Insightful

    The summary does a poor job of presenting the article. The article is more about the poor job Google is doing with communicating with their customers, especially when things go wrong. Customers in this sense are paying advertisers, not search engine users, picasa users, google earth users, etcetera.

    That said, secrecy is useful for an organization. When you are telling the world what you are doing, so you are telling your competition. So it's not all bad.

  8. It's the Google attitude by swid27 · · Score: 4, Insightful

    The thing that's always bugged me about Google is the generalized sense of smug superiority the company seems to emanate. "Look at our amusing job position titles!" "No, don't ask us about what we do with all the data we collect!" "Here, look at the quirky benefits we provide for our employees!" "Please, stop pointing out that while we brag about how much we love open source software, most of our exciting free applications are only available for Windows!"

    Google is the kid in high school who is smart (but not exceptionally so), works *very* hard to maintain 4.0 GPA and also sucks up to his teachers all the time. However, he gets very secretive and passive-aggressive when you point out his imperfections.

    1. Re:It's the Google attitude by kv9 · · Score: 4, Insightful
      "Please, stop pointing out that while we brag about how much we love open source software, most of our exciting free applications are only available for Windows!"

      isn't it logical to start on the most popular platform and if it pans out, expand?

      brag or no brag, they put their money/code where their mouth is (code/SoC/OpenBSD)

      Google is the kid in high school who is smart (but not exceptionally so), works *very* hard to maintain 4.0 GPA and also sucks up to his teachers all the time. However, he gets very secretive and passive-aggressive when you point out his imperfections.

      looks to me that they always shut the fuck up and do their job. and churn out nifty products all the time. i guess that's what people don't like -- i mean, what kinda company are they if they don't toot their own horn all the time and fail to deliver? something must be rotten!
    2. Re:It's the Google attitude by Demerara · · Score: 4, Insightful

      Google is the kid in high school who is smart (but not exceptionally so), works *very* hard to maintain 4.0 GPA and also sucks up to his teachers all the time. However, he gets very secretive and passive-aggressive when you point out his imperfections.

      Cringely's article is very well researched and he brings to our attention some genuine issues with Google. Not to mention Google's spokesperson's descent into corporate bollick-speak (forgive me but that's really the only way to put it).

      Google are hurtling towards that point where they lose credibility because the public positions they are forced to take are so obviously driven by their need to maintain shareholder rather than stakeholder (and by stakeholder I mean small and medium business customers and the wider, but influential, technical community) confidence.

      I regretted not buying Google stock early on but, frankly, now I'm glad I didn't - if they don't crush the fraudulent AdWord click issue, they'll lose the plot completely and deserve all they get in the markets.

      --
      Backward%20compatibility%20is%20over-rated
  9. Your point? by Duncan3 · · Score: 4, Insightful

    Of course they are secretive.

    They know as well as the rest of us that it will take about 3 days for everyone on the planet to dump Google as soon as a search engine without pages of fake sites filled with ads or just irrelivant sites is all you get no matter what you search for.

    Remember AltaVista?

    No reason for Google to give us 3 days notice ;)

    --
    - Adam L. Beberg - The Cosm Project - http://www.mithral.com/
    1. Re:Your point? by oncebitten · · Score: 2, Insightful

      I don't know about you, but I've been getting crappy results with simple searches in Google recently.

      Used to be I wanted to find take out taxi or a random restaurant menu here in the DC area, no problem, first hit (I didn't event need to specify Alexandria VA or Alexandria LA), now I get a whole bunch of random crap, none which is what I'm looking for.

      Even finding technical issues for stuff posting on mailing lists is a problem.

      Advertising *is* diluting Google's product. It's the reason I switched from Yahoo, Ultraseek, etc. And, if something comes up that's better, I'll gladly switch again.

      I don't care what whiz bang shit you have, if you can't find me what I want, you're useless as a search engine.

      The point being, secrecy isn't bad when it works, but when it doesn't, you're in for a world of hurt, especially when you're in highly substitutable businesses such as search engines and ad banner generators.

  10. What?! by mblase · · Score: 2, Insightful

    It all comes down to the AdWords algorithm and its intent, which isn't to help Luis OR Amazon, but to simply maximize profit for Google.

    Darn those publicly traded companies! How dare they!

    "Do No Evil" only really applies when you don't count making a profit as "Evil", folks.

  11. its quite interesting that.... by zappepcs · · Score: 2, Insightful

    its quite interesting that people think a corporation is exempt, or somehow free of greed. Sam Wall was a good guy, but when he died, the corp. made things evil. Google can be, or maybe already is, evil. Internet users, as a whole, should be asking 'what have you done for me lately' not what is evil or not evil. The whole business of the Internet is about what have you done for me lately. Any Internet business model not based on that is a business that really doesn't understand the Internet.

  12. There's a reason Cringley is a 2bit writer by Anonymous Coward · · Score: 5, Insightful

    There's a reason Cringley has remained a mediocre journalist, while google is a multi-billion software firm founded on being really, really smart.

    This reason is exemplified by Cringley misunderstanding that google (and microsoft, and coke, and countless other hugely successful firms) are successful *solely* because they own trade secrets, leveraged into strategy -- and not because of some stupid "mystique" concept invented by mediocre journalists because they don't know what the company is actually doing, but still get paid by the word.

    Duh.

  13. Re:I think Google has already peaked by imemyself · · Score: 2, Insightful

    People said Microsoft couldn't make a decent browser in 1996

    I think most people on /. would agree that ten years later, they still can't. Popular by default (not by choice) does not necessarily equal decent.

    --
    Every time you post an article on Slashdot, I kill a server. Think of the servers!
  14. Is that how you see it? by Anonymous Coward · · Score: 5, Insightful

    Because it looks to me here more like what's happening here is just the "geek community" (by which, of course, I just mean "people who read slashdot") increasingly losing all touch with reality.

    You can see this happening in a number of ways, but the increasing process of demonizing Google more and more (to the exclusion of having much energy left over to care about corporate interests which are legitimately harming the public good) is just the funniest.

    You wanna know when Google got "evil"? It had nothing to do with China. Google got "evil" when they got successful. Self-proclaimed "geeks" got so used to rooting for the underdog that, pavlov style, as soon as Google became the overdog they started reflexively rooting against them.

    I was reading Slashdot on the day that Google went IPO; people were already predicting, before the IPO, that Google would no longer be able to keep up a perception of being "good" while a for-profit, publicly traded company. And then the next day, when Google went IPO, they went ahead and started perceiving Google as "evil", without going to the bother of waiting for Google to actually do anything evil. Once Google finally went and got around to starting up a search site hosted in China*, these people started using this retroactively as the justification for their loose anger against Google. People who weren't looking for a reason to demonize Google barely even noticed the whole China thing.

    * What, you think what Google did was "censoring search results"? The Chinese google search sites hosted in America and Taiwan aren't censored and still work just the same as they always did. It's just that now Google also has a local site hosted in China and adhering to China's censorship laws that people in China can use if they want unfettered access to Google without having to circumvent China's web filters every time they need to search for something. Is this an ethical thing for Google to do? Maybe, maybe not, with the balance probably being on "not". But by doing this, Google has hurt nobody; if Google hadn't done this, nobody would have been helped and all that would have happened is MSN would have become the default search engine in China. The only reason we view Google's presence in China as a problem is that we for whatever reason hold Google to the special standard that they shouldn't do business in China, a standard we do not hold Cisco, Yahoo, Microsoft, Fox News, CNN, McDonalds, or the U.S. Government to.

    How can you tell when the Slashdot userbase has lost all sense, logic, or integrity? When they start agreeing with Cringely.

  15. Uh, well that's pretty easy to fix by Anonymous Coward · · Score: 3, Insightful

    Just stop viewing the world with a high school mentality, and the problem will magically disappear. Once you're moved on and, like the rest of us, view things like companies based on their real-world actions and products-- rather than whether they make you feel inferior in front of an imaginary teacher that no longer exists-- you'll feel so much better. I promise.

  16. The problem with tech reporters by DRM_is_Stupid · · Score: 4, Insightful

    Google folks don't understand why the rest of us have a problem with this

    Who? Wha..? Who are these "the rest of us" that this guy speaks of? A similar phenomenon happens with Apple fandom sites. Basically, when a news site or reporter decides to focus only on one or two companies, s/he ends up not having enough news, and this causes a lot of frustration. And they usually end up going down the path of speculative reporting (which is usually really boring, long, and incorrect).

  17. Yeah, but screw the stockholders by realmolo · · Score: 4, Insightful

    Google is probably too secretive, but I appreciate their attitude. They have VERY LITTLE respect for the stock analysts, and Wall Street in general.

    The fact of the matter is that the stock market is built on false (or at least dubious) perceptions. Google refuses to play that game. They don't tell ANYBODY what they're doing, which evens the playing field. The "big players" don't have any insider information, and so don't have a significant advantage over the "little players". I think it's great. Google basically says "We're not going to help the rich get richer."

    That said, they are playing a dangerous game. Wall Street (and their ilk) essentially controls the U.S. economy. A given business pisses them off at their own peril. But at least Google is making the effort. And so far it has worked.

  18. If the worst you can say about a company is.... by hansreiser · · Score: 3, Insightful

    that it is secretive, it seems to me that company is pretty saintly.

    Now I myself can say worse things about Google, namely that I read through their defense of their collusion with China on censorship, and the more they defend it the clearer it is that their motivation is greed. I myself never got as aggressive as I would have in pursuing Chinese business opportunities because of being ill at ease about their government, and Google could have survived losing that market.

    However, on the whole they are a good and generous company, possessed of the same amount of greed and other flaws as most generally good corporations or people have.

    This could, of course, change.;-)

      Really, most of us have a lot more flaws than being secretive.... I do (but I keep them secret;-) ).

  19. Re:price mystique by drsquare · · Score: 3, Insightful

    Google's stock pirce could bottom out tomorow and I doubt that it would have much affect on their day-to-day buisness.

    It would affect their day-to-day business when half their employees walk out because their options are now worthless.

  20. Totally by richardwatson · · Score: 2, Insightful

    So stop reading those threads - go read something else, it's your choice.

    --
    http://www.tudumo.com - todo list with tags
  21. Why is this news? by pedantic+bore · · Score: 2, Insightful
    This is "news" because everyone treats Google like they're special, different, blessed, and the saviour of the internet.

    They're not. They're a bunch of guys with a great PR machine, who like to make money, and who are surrounded by a bunch of technonerds. Behind the hype, Google is the Walmart of the internet.

    --
    Am I part of the core demographic for Swedish Fish?
  22. Re:price mystique by rolfwind · · Score: 2, Insightful

    You have a point. But look at how Microsoft, Ebay, AOL, etcetera are running around lately like headless chickens all looking for the next pot o' gold (fad) at the end of the rainbow to defeat Google. They are all truly scared what Google is going to do next and are reacting with little thought, wasting resources and energy shadow boxing google.

    How many worthless initiatives does MS alone announce these days to defeat Google? Run read /. to find out.

    And google can spend it's time conserving resources and energy, developing, innovating, and not paying attention/reacting to every little move the competition makes.

    I don't think Google being completely transparent would be a strategic advantage right now. Let MS and the other wear themselves out first chasing rainbows.