I-Search #014: Search As Commodity?

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                    SearchReturn Discussion List
             "Understanding Internet Search Technology"
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Moderator:                                          Published by:
Disa Johnson                                       SearchReturn
               http://www.searchreturn.com
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November 10, 2005                                      Issue #014
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                   .....IN THIS DIGEST.....

// -- NEW DISCUSSION -- //

         "Search As A Commodity?"
                 ~ SearchReturn

// -- CONTINUING DISCUSSION -- //

         "Google Personal Search"
                 ~ SearchReturn

// -- ESSENTIAL NEWS -- //

         "Yahoo! CTR Ranking 2006"
         "Alibaba Baidu Competition"
         "Jagger Update Completing"
         "Search Usability"
         "Search User Chart"
         "Google Classified Ads"

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// -- NEW DISCUSSION -- //

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==> TOPIC: SEARCH AS A COMMODITY?

From: SearchReturn 

Hello everyone,

Search engines have been used as a commodity to power portal Web
search in times past, and with the advent of Google, the move
toward search as a standalone application has proven itself fully
viable. In the article "Search is a commodity (again)," it is
argued that search has reverted back to the status of commodity.

http://www.roughtype.com/archives/2005/11/search_is_a_com.php

If no single search service stands out like Google did to
differentiate originally, this could certainly be a reality. If a
search box in browser software, (or as a function of a favorite
portal) ends up being the way people use search (rather than
directly), that threatens the very nature of success Google has
enjoyed to this point. The days when search is then a commodity,
as Inktomi once was used, may return again.

Not so fast.

Nearly all of Google's revenue is earned by ads served at
Google.com, where only a meager 10% (roughly) is earned through
content network ad serving. Google lives and dies by the sheer
number of users who visit Google.com and engage its search
services, (Google gives the largest stake of advertising revenue
to content publisher partners that serve its ads).

Google personalization officially came out of beta today, now
offered generally worldwide. The motive behind Google becoming a
portal? Protecting its user marketshare. But here lies the rub:
would you pay for Google news?

If search becomes a commodity again, Google would be charging for
services it currently gives away free, then an upstart can repeat
the Google burn by focusing on search alone. Let's face it,
Google generally sends users off to other websites rather than
keeping visitors transfixed by its own services, and amazingly,
this really does not harm its earning potential. Google can think
of itself as a modern media company, referring users elsewhere
while selling search ads.

The only motive Google has to diversify its offerings is to
protect it's user base; not to add revenue generating services.
People speculate that Google Base, (or "Automat" which is another
service name making the rounds), will be the next revenue stream
for Google. But Google would face a "sea change" if it began
charging money for such things. It is more Google's MO to give
things away, like Google Earth.

We bet many readers were ecstatic to learn that the basic version
of Google Earth is free, and would gladly have paid something for
it. That is viral marketing at its best. In a leaked memo, (which
may have been leaked intentionally), even Bill Gates is betting
that Internet-centric service offerings being successful as
offered free, advertising supported. Cringely speculates that to
compete with Google, (and its future potential with a Sun/IBM
partnership), Microsoft Windows might one day be given away for
free!

http://www.pbs.org/cringely/pulpit/pulpit20051103.html

Imagine that. Has the success of Google, in a way, converted Bill
Gates into a champion of free software?

Stay tuned.
-SR

 

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// -- CONTINUING DISCUSSION -- //

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==> TOPIC: GOOGLE PERSONAL SEARCH

"I find it hard to believe that the search engines will go to
these lengths for personalization but use it only on paid search.
If they think they can improve the organic results through
personalization, I think they will. Now what will *that* mean to
search marketing? Goodbye rank checkers"

From: SearchReturn 

With Yahoo!'s MyWeb personalized search results, and Google
search personalization coming out of beta today, this is exactly
how things are transpiring. Nick from Threadwatch noticed this
message from a Google search today:

http://www.threadwatch.org/images/googlepersonalizationui.jpg

Stay tuned.
-SR

 

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// -- ESSENTIAL NEWS -- //

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==> Yahoo! CTR Ranking 2006

http://www.searchreturn.com/digest/refs014.shtml

Essentials: Yahoo! apparently will factor in CTR for ranking ads.
During a quarterly investor call, Yahoo! described a new bidding
system targeted for release in 2006.

 

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==> Alibaba Baidu Competition

http://www.searchreturn.com/digest/refs014.shtml

Essentials: Statements that may be more dramatic than necessary
include: "If we don't move fast, within eight to 10 months, we
don't have a chance."

 

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==> Search Usability

http://www.alistapart.com:80/articles/accessibilityseo

Essentials: When reading this post, rather than think of search
engines as access challenged, think of them as rewarding your
accessible design with better rankings. Search engines want to
refer search users to sites where they can have some measure of
assurance the site will display properly.

 

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==> Jagger Update Completing

http://www.mattcutts.com/blog/jagger-winding-down/

Essentials: The last changes left for the Google Jagger index
update are reserved for handling spam feedback. Google seems to
have improved its ability to identify low-quality link ranking
schemes. A shift from the ranking power associated with large
numbers of off-topic links, links from link pages, and reciprocal
linking in general, has shifted towards additional power for
inbound links from trusted sites. It's a plainly obvious move.

 

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==> Search User Chart

http://www.internetretailer.com/article.asp?id=16570

Essentials: Nice breakdown of search user motive differences
between Yahoo!, Google, MSN, and AOL. As Danny pointed out in a
recent SearchCast, people use Google for its search, and other
sites that offer search for their other services. Yahoo! gets the
only other respectable showing for their search.

 

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==> Google Classified Ads

http://www.searchreturn.com/digest/refs014.shtml

Essentials: The story warrants a skeptical read, and it is
certainly worth tracking. It may constitute a second revenue
generating service by Google. It looks like it might simply
extend its core advertising sales business.

 
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