duminică, 31 mai 2015

Seth's Blog : Not all who are lost, wander

Not all who are lost, wander

Going faster doesn't make you less lost. It's okay to ask for directions. 

(Knowing you're lost is half the battle.)

       

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sâmbătă, 30 mai 2015

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Odds of losing a Job to Automation: Which Jobs are at Risk, Which Aren't?

Posted: 30 May 2015 03:43 PM PDT

A number of articles now circulating are all based on a 2013 study The Future of Employment: How Susceptible are Jobs to Computerization?.

It's interesting that the 2013 report is now seeing the light of day in various places just this week. The best of the lot is the NPR Planet Money report Will Your Job Be Done By A Machine?

The article lets you select from two drop boxes, the first is job field, the second is a specific job within that field.

Here are some random results

  • Cartographers and Photogrammetrists: 87.9%
  • Electrical Drafters: 80.8%
  • Umpires and Referees: 98.3%
  • Technical Writers: 88.8%
  • Translators: 38.4%
  • Tax Preparers: 98.7%
  • Accountants and Auditors: 93.5%
  • Credit Counselors: 4.0%
  • Editors: 5.5%
  • Maids and Housekeepers: 68.8%
  • Janitors: 66.3%
  • Computer Programmers: 48.1%
  • Actuaries: 20.6%
  • Computer Systems Analysts: 0.6%
  • Roofers: 89.7%
  • Rail Track Laying: 89.1%
  • Carpenters: 72.4%
  • Paralegals: 94.5%
  • Court Reporters: 50.2%
  • Timing Device Assemblers: 98.5%
  • Packaging: 98.0%
  • Bakers: 88.8%
  • Jewelers: 95.5%
  • Optometrists: 13.7%
  • Dentists: 0.4%
  • Occupational Therapists: 0.3%
  • Telemarketers: 99.0%
  • Fashion Models 97.6%
  • Cashiers: 97.1%
  • Insurance Agents: 91.9%
  • Librarians: 64%
  • College Professors: 3.2%

I disagree with some of those. For example, there is absolutely no need for relics like librarians as I libraries will become extinct.

Paralegal jobs are already vanishing rapidly as are packaging jobs. Telemarketing has already been replaced by auto-dialers that say "Hi this is heather, your account specialist".

I fail to see why we need court reporters. And why can't actuaries be replaced by a computer model?

On the positive side, I have better hopes for janitors than the study. And while baseball umpires may vanish, football referees won't. I highly doubt maid services and home cleaning will go away, but those will be low paying jobs.

I could not find categories for truck and taxi drivers, two fields that will shed millions of jobs over the next decade.

It's easy to quibble with individual assessments. Yet, the overall picture is clearly quite grim for numerous occupations.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Damn Cool Pics

Damn Cool Pics


10 Pranks That Turned Into Complete Disasters

Posted: 29 May 2015 08:36 PM PDT

These people were just trying to pull a few simple pranks but they backfired big time.

Many pranks rely on the element of surprise to get laughs, but when humans are surprised they can react in unpredictable ways. When Colorado teen Premila Lal hid in a closet to scare friend Nerrek Galley, she thought she was in for a little bit of fun. But Galley interpreted the strange sounds from the closet as an intruder in his house, pulled out a firearm and shot her. Once he realized what he'd done, he rushed Lal to the hospital but it was too late, and she was pronounced dead on the scene. Galley was not charged in the incident. 



The classic Halloween prank of egging and TP'ing a house is a pain in the butt to clean up, but it's not worth your life. When Adrian Broadway went with a group of friends to TP a house in retaliation on Halloween, she probably should have done a little research. After throwing eggs and tissue all over a car parked outside a Little Rock, Arkansas, house, a gun-toting man who was more than a little pissed surprised the group. The man, Willie Noble, opened fire on the kids, shooting Adrian in the head and killing her. Noble was arrested and charged with first-degree murder.



Be honest, how would you react if you were driving through the Montana wilderness and Bigfoot jumped out from behind a tree? That's the comedic premise that 41-year-old Randy Lee Tenley of Kalispell was working with when he put on his ghillie suit in August 2012 and tried to freak out some motorists. Unfortunately for him, the natural human response to seeing Bigfoot on the road is to kill him, as a 15-year-old girl driving down the road swerved into him. He was pronounced dead at the scene.



Petty vandalism is one of the most dull-witted of pranks, but this particular story is even dumber. Ohio teens Seth Stonerock and Derek Greenlee had the bright idea to cover a stop sign in layers of Vaseline and Saran Wrap, obscuring the sign's message for drivers. Why this was funny, we have no idea. The prank worked all too well, as a pair of elderly women sped through the intersection and were rammed by a SUV towing a boat. Both women died, and Stonerock, still a juvenile, was given a four-year sentence and released in 2012 after serving eight months.



Knocking on doors and running away is a popular teenage prank — leaving flaming bags of dog poop on the porch is often a second part of it — but it's typically just an annoyance for the victims. Unfortunately for Florida teen Mark Drewes, some people don't take being annoyed well. In 2003, Drewes and some friends were conducting a campaign of midnight knocking around their Boca Raton neighborhood when they picked the wrong house. Occupant Jay Levin grabbed a handgun, opened the door and shot Drewes, killing him.



Of all the schoolyard humiliations, the wedgie might be the most painful. Having your underpants yanked up into your crack looks ridiculous and feels worse. But when 33-year-old Brad Davis decided to perform the dreaded "atomic wedgie" on his stepfather Denver St. Clair after a night of drinking, things went beyond mere pain. Davis and St. Clair were arguing about Davis's mother when things escalated into violence. Davis knocked out the older man with a punch to the head, then administered the wedgie with such force that the elastic band went all the way up to his throat, asphyxiating him. Davis called 911 to report the death and was taken into custody.



Deadly pranks aren't just a 21st-century thing. Let's head back to the 1980s for a notorious teenage prank that shook New York City to the core. Peter Wade was a city teenager who was hanging out with friends in Fairlawn, New Jersey, when he got the bright idea to throw a railroad switch and see what would happen. What happened was disaster — the train crashed into a factory, killing engineer John Duffy who was protecting a 14-year-old boy from the impact. Wade pled guilty to manslaughter and spent 22 months in jail, then went on to make millions on Wall Street and produce a film about his life.



It's hard to imagine that a prank phone call could result in somebody's death, but it's happened. In 2012, a DJ for a morning show in Australia called the hospital that Kate Middleton was staying at (following a bout of morning sickness) and pretended to be Queen Elizabeth. A receptionist put her through to the ward where the DJ was given an update on the condition of the Duchess. It was all played for big laughs, but the receptionist, a woman named Jacintha Saldanha, was so ashamed by her royal faux pas that she committed suicide two days after the incident.



Halloween is one of the most popular days for pranking, with people busting out super-scary concepts. Kentucky teen Jordan Morlan was trying to freak out his sister with the classic "fake noose" trick, where you support your body with something and pretend you're hanging dead. Unfortunately for Morlan, he miscalculated his position and the noose cut off the blood flow to his brain, trapping him there until he asphyxiated. His mother thought it was a harmless prank until the little sister told her that he wasn't moving and had drool coming from his mouth.



OK, this one moves outside of the realm of "harmless prank" and into "truly disturbing," so let's make it the last one we do. In 2010, a Chinese chef Zhang Dajun went out drinking with friends and had a little too much fun. After he passed out, his friends thought of wacky things to do with his slumbering body, as friends do all over the world. But instead of drawing on his face with a Sharpie, they took a live eel and put it into his anus. When he woke up, his butt started to bleed and he was hospitalized. It wasn't until after he died that doctors cut him open and found the sea creature in his digestive tract, and his friends 'fessed up to the vile prank.

Seth's Blog : Pain and money and b2b selling

Pain and money and b2b selling

When you sell to someone at a business, it's worth remembering that the pain their problem is causing belongs to them, while the money they have to spend, doesn't.

Any time you can cure their pain in exchange for their boss's (or the shareholder's) money, that's a compelling offer.

The challenge is actually being able to cure the pain, because too often, when an organization moves forward, the fear of failure and the pain of change is worse than the problem they started with. Asserting it can be done is insufficient.

       

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vineri, 29 mai 2015

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Five Chicago Suburbs Headed for Bankruptcy (More Illinois Cities Will Follow)

Posted: 29 May 2015 12:57 PM PDT

Illinois House Bill 298 would allow Illinois municipalities to file for Chapter 9 bankruptcy. That bill is endorsed by Governor Bruce Rauner, and currently rests in the house rules committee.

As soon as Illinois passes Bill 298, a number of Illinois cities are highly likely to file bankruptcy as noted by Bond Buyer in Illinois' Candidates for Municipal Bankruptcy.
If HB298 was enacted, which local governments might use the new bankruptcy option? To help answer this question, our team reviewed audited financial statements that all but the smallest municipalities must file. Most of these financial audits can be found on the state comptroller's local government Finance Warehouse.

Among the indicators we considered were government-wide unrestricted net position and general fund balance. The first indicator shows the degree to which assets held by the government entity as a whole exceed its liabilities and are not locked up in buildings and other illiquid forms. The second indicator, general fund balance, focuses more narrowly on the government's main fund – which is roughly analogous to an individual's checking account. Low or negative general fund balances were cited in the bankruptcies of Vallejo and Stockton, California. It is worth noting that the five municipalities we identified are all located in Cook County, which also faces fiscal challenges. Our list does not include Chicago. Although that city's financial struggles have made frequent headlines, several of its smaller suburbs appear to be in much greater fiscal distress. The five communities we identified are: Maywood, Sauk Village, Blue Island, Country Club Hills and Dalton.
Distress Summary

Maywood: Village of Maywood reported an unrestricted net position of -$47.4 million, and a general fund balance of -$8.2 million. While we found a number of jurisdictions with negative balances, these levels are quite pronounced for a relatively small municipality. With general fund revenues of only $23.3 million and government-wide revenues of $44.1 million, it will take the village a long time to eliminate these shortfalls.

Sauk Village: Sauk Village reported an unrestricted net position of negative $36.7 million – a very large negative position considering that the village had only $29.6 million in assets and government-wide revenues of $13.4 million. Sauk Village also showed a negative general fund balance and unusually high interest costs. The village's $2.1 million of interest expense accounted for over 15% of total revenue. The Village received an adverse audit opinion for its reporting of "Aggregate Remaining Fund Information" and a qualified opinion for its reporting of "Governmental Activities." The Police Pension Fund information was not included and has not been subject to an actuarial evaluation since May 1, 2011.

Blue Island: The City of Blue Island reported an unrestricted net position of negative $15.2 million and a general fund balance of negative $10.5 million in its 2013 financial statements – the latest available. The negative general fund balance is especially pronounced because the city only recorded $16.3 million in general fund revenue during fiscal year 2013. The city's negative net unrestricted position appears to be understated because Blue Island did not report an Other Post-Employment Benefit (OPEB) liability.

Country Club Hills: The City of Country Club Hills has yet to file audited financial statements for the 2013 fiscal year – making it the most delinquent filer among the municipalities we reviewed. The city's 2012 financial statements show a slightly negative unrestricted net position and a large negative general fund balance. Further, the city's auditor was unable to render an opinion on the accuracy of these statements, saying:

Dolton: The Village of Dolton reported a small negative net unrestricted position in its 2013 financial statements – the latest available. Although its general fund balance was positive, the amount was well below Government Finance Officers Association guidelines. Dolton's $1.3 million general fund balance would cover less than a month of general fund expenditures, which were $22.1 million for the 2013 fiscal year. Further, the village reported a $5.2 million general fund deficit. If this deficit persisted into 2014, Dolton may now be facing a negative general fund balance.

Modification to Bill 298 Needed

The Bond Buyer concludes "As Detroit and other cities filing Chapter 9 have found, municipal bankruptcy is an expensive process that transfers community resources to lawyers and financial advisors. While it may be unavoidable, bankruptcy should always be treated as the least best option."

I agree with that statement and that is why I advocate a rules change to Bill 298 that will give bondholders, not pensioners, a secured first lien.

Such a provision would lower borrowing costs to the benefit of taxpayers and it would get public unions to bargain upfront rather than drag processes out for years as happened in Detroit.

For further discussion on Bill 298 and why bondholders should have first lien rights, please see Calpers Wins Pension Lawsuit, Not Good News for Chicago (or Bondholders in General).

In the case of the five cities listed above, bankruptcy appears inevitable although the village administrator of Dolton strongly rebutted the report's findings as noted in a separate Bond Buyer article on Illinois Bankruptcy Candidates.

Bankrupt Candidate Populations

  1. Maywood: 24,160 (2013)
  2. Dolton: 23,333 (2013)
  3. Country Club Hills: 16,866 (2013)
  4. Blue Island: 23,793 (2013)
  5. Sauk Village: 10,549 (2013)

I am aware of at least one other Illinois city potentially ready to file if allowed, and I suspect there are far more waiting in the wings.

Meanwhile, the outlook for the Illinois economy is not a good one. For details, please see Chicago PMI Unexpectedly Crashes: New Orders, Production and Employment Down by More Than 10%

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Chicago PMI Unexpectedly Crashes: New Orders, Production and Employment Down by More Than 10%

Posted: 29 May 2015 11:46 AM PDT

Unexpected Chicago PMI Crash

Looking for signs of strength? You will not find them in today's Chicago PMI report.

The Bloomberg Consensus estimate was for a 53.1 expansion reading. Instead, the PMI came in at 46.2, well below the bottom of the consensus range of 51.0 to 54.0.

Readings below 50.0 indicate contraction.

New Orders, Production and Employment Down by More Than 10%

For details, let's turn to the Chicago ISM Report that shows Business Barometer Back into Contraction in May.
The Chicago Business Barometer fell sharply back into contraction in May, reversing all of April's gain and casting doubt on the strength of the widely expected bounceback in the US economy in the second quarter. The Barometer fell 6.1 points to 46.2 in May from 52.3 in April. All five components of the Barometer weakened with three dropping by more than 10% and all of them now below the 50 breakeven mark.

April's positive move had suggested that the first quarter slowdown was transitory and had been impacted by the cold snap and port strikes. May's weakness points to a more fundamental slowdown with the Barometer running only slightly above February's 5½-year low of 45.8. The three month average, although little changed on the month at 48.3, is significantly down from 61.3 in Q4 2014 and barring a sharp rebound in June points to continued sluggish growth in the second quarter.

The decline was led by a 13.8% fall in New Orders to 47.5 from 55.1 in April, pushing it into contraction for the third time this year. In line with the lower order intake, both Production and Employment Indicators suffered double-digit losses in percentage terms between April and May, with the latter falling to the lowest since April 2013. Order Backlogs declined more moderately, remaining in contraction for the fourth consecutive month.

There was further evidence that the period of oil driven softer prices has run its course. Prices Paid jumped sharply back into expansion in May to the highest since December.
Chicago PMI



Telling Stats

Unlike strict manufacturing PMI reports, the Chicago PMI is a survey of manufacturing and non-manufacturing (services), tracking all aspects of the Chicago economy.

Here is one more telling stat from the report: "42% of companies said their current inventory level was too high compared with 12% in a comparable question asked in November 2014. 53.2% said stock levels were about right, with less than 5% reporting them as too low."

So don't go looking for an inventory rebuild to lead the way out of this slump.

Recession Call

I don't believe this is a "Chicago Only" problem. But it could be an indication that Illinois will be harder hit by the next recession than other areas.

Nationally, economists are looking for close to 3% annualized growth for second quarter. I am sticking with my recession call made back on January 31.


For comments on current recession odds, first quarter GDP revisions, and second quarter GDP estimates, please see First Quarter GDP -0.7%; GDPNow Second Quarter Forecast +0.8%; Economists Get Zero Accolades; Smoothed Recession Odds from earlier today.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com 

First Quarter GDP -0.7%; GDPNow Second Quarter Forecast +0.8%; Economists Get Zero Accolades; Smoothed Recession Odds

Posted: 29 May 2015 10:29 AM PDT

First quarter GDP came in at -0.7% pretty much in line with the Bloomberg Consensus estimate of -0.8%.
First-quarter GDP was revised down about as expected, to minus 0.7 percent vs expectations for minus 0.8 and compared with an initial reading of plus 0.2 percent. Updated source data made for a bigger negative contribution from net exports as imports spiked 5.6 percent from an initial gain of 1.8 percent. The change here is tied to the port strike and the sudden unloading of imports in March. A lower estimate for inventory growth was also a negative. Turning to demand, final sales were revised downward to minus 1.1 percent from minus 0.5 percent.

On the positive side, the contribution from residential fixed investment rose to 5.0 percent from 1.3 percent while the negative contribution from business spending improved 6 tenths to minus 2.8 percent.

The first quarter was definitely weak, showing the first contraction since first-quarter 2014 when GDP fell 2.1 percent in another winter quarter affected by unusually severe weather. The Fed itself has been noting the risk that the pattern of first quarter weakness could reflect how the numbers are crunched by government statisticians to account for seasonal variations. This process may have exaggerated the underlying weakness in the quarter.

Where is GDP currently tracking? Early estimates were in the 3.0 percent range but, due to weak consumer spending, have been slipping to the 2.0 percent range.
Economists Get Zero Accolades

Economists get zero credit for guessing this one correct. Their negative estimate was in arrears after consumer spending unexpectedly collapsed.

This is what the "Blue Chip" economists thought about first quarter GDP on April 2.

GDPNow Estimate for 1st Quarter, April 2



Note the "Blue Chip" consensus at the end of the first quarter was for 1.7% annualized growth. They were off by 2.4 percentage points.

Pathetic.

Bloomberg notes the "port strike and the sudden unloading of imports in March." Question of the day: Had they not unloaded merchandise in March, would they have done so in April?

Of course they would. So instead of whining about the sudden unloading in March, mentally shift -0.4% or so from first quarter to the second quarter.

That brings us to the today's GDPNow Forecast.

Second Quarter GDPNow Estimate



The "Blue Chip" forecasters who were off by a massive 2.4 percentage points at the end of the first quarter are now back at it.

They are looking for 2.9% GDP growth vs. the Atlanta Fed GDPNow model of 0.8%.

Had that port strike settled in April, first quarter would still have been negative due to the revision in final sales to minus 1.1 percent from minus 0.5 percent. And second quarter GDP would now be barely positive according to the GDPNow model.

Smoothed Recession Odds



As of May first, the smoothed recession odds of recession stand at 1.2%.

On Verge of Recession

I think second quarter GDP will come in even lower than GDPNow. Consumers show no inclination to spend, despite economists persistent belief they will.

We are on the verge of recession, if indeed not already in one. First quarter GDP was negative and if for any reason second quarter GDP is negative the US will be in recession.

Regardless of whether or not one believes second quarter GDP will be negative, the odds are far better than 1.2%.

Besides, it does not even take two quarters of negative GDP for there to be a recession. Rather, two quarters of negative GDP is a sufficient but not necessary condition.

The smoothed recession odds model is clearly a joke.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Introducing the Zero Labor Factory (90% Free Actually); Robots at Chili's, Applebees, Panera

Posted: 28 May 2015 11:25 PM PDT

In the strive for zero labor factories we are nearly there. Is 90% good enough?

China Daily reports Manufacturing Hub Starts Work on First Zero-Labor Factory.
A manufacturing hub in South China's Guangdong province has begun constructing the city's first zero-labor factory, a signal that the local authorities are bringing into effect its "robot assembling line" strategy.

Dongguan-based private company Everwin Precision Technology Ltd is pushing toward putting 1,000 robots in use in its first phase of the zero-labor project, China National Radio reported. It said the company has already put first 100 robots on the assembly line.

"The 'zero-labor factory' does not mean we will not employ any humans, but what it means is that we will scale down the size of workers by up to 90 percent," said Chen Qixing, the company's board chairman.

After the work on smart factory started, Chen predicted that instead of 2,000 workers, the current strength of the workforce, the company will require only 200 to operate software system and backstage management.

"It is necessary to replace human workers with robots, given the severe labor shortage and mounting labor costs," said Di Suoling, head of Dongguan-based Taiwan Business Association.

Manufacturers in the PRD have been hit by a shortage of an estimated 600,000 to 800,000 workers, according to data released after the Spring Festival in February.

Tens of thousands of migrant workers had earlier gone back home to inlands for a family get-together and some of them decided to settle down in their hometown where the living costs are much less than the coastal cities.
Shortage of Labor?

There is no shortage of labor. There is no shortage of skills either. Rather, there is a shortage of people willing to work for what factory owners are willing to pay.

And with cheap money everywhere you look, there is plenty of money at low rates to buy robots.

Meanwhile, back in the US, McDonald's employees think they are worth $15 an hour for taking orders and handing people a sack of crap.

Robots at Chili's, Applebees, Panera

High wages means fewer jobs. CNN accurately reports Robots will Replace Fast-Food Workers.
Panera Bread (PNRA) is the latest chain to introduce automated service, announcing in April that it plans to bring self-service ordering kiosks as well as a mobile ordering option to all its locations within the next three years. The news follows moves from Chili's and Applebee's to place tablets on their tables, allowing diners to order and pay without interacting with human wait staff at all.

In a widely cited paper released last year, University of Oxford researchers estimated that there is a 92% chance that fast-food preparation and serving will be automated in the coming decades.

Delivery drivers could be replaced en masse by self-driving cars, which are likely to hit the market within a decade or two, or even drones. In food preparation, there are start-ups offering robots for bartending and gourmet hamburger preparation. A food processing company in Spain now uses robots to inspect heads of lettuce on a conveyor belt, throwing out those that don't meet company standards, the Oxford researchers report.

Darren Tristano, a food industry expert with the research firm Technomic, said digital technology will "slowly, over time, create efficiency and labor savings" for restaurants. He guessed that work forces would only drop as a result by 5% or 10% at a maximum in the decades to come, however, given the expectations that customers have for the dining experience.

"If you look at the thousands of years that consumers have been served alcohol and food by people, it's hard to imagine that things will change that quickly," he said.
I think Darren Tristano is in fantasyland. The higher the wage, the bigger the incentive to get rid of people.

Central banks have mush for brains in their attempts force wages and prices up in this type of environment.

Question of the Day

How much do you tip a human server, when the server did not even take your order? The question will eventually be moot when robots bring food to the table.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Damn Cool Pics

Damn Cool Pics


Horrible Accidents That Happened On Famous Movie Sets

Posted: 29 May 2015 04:03 PM PDT

Sometimes making a movie can be dangerous work.


















Is Brand a Google Ranking Factor? - Whiteboard Friday - Moz Blog


Is Brand a Google Ranking Factor? - Whiteboard Friday

Posted on: Friday 29 May 2015 — 02:15

Posted by randfish

A frequently asked question in the SEO world is whether or not branding plays a part in Google's ranking algorithm. There's a short answer with a big asterisk, and in today's Whiteboard Friday, Rand explains what you need to know.

Is Brand a Google Ranking Factor Whiteboard

For reference, here's a still of this week's whiteboard. Click on it to open a high resolution image in a new tab!

Video Transcription

Howdy, Moz fans, and welcome to another edition of Whiteboard Friday. This week I'm going to try and answer a question that plagues a lot of marketers, a lot of SEOs and that we ask very frequently. That is: Is brand or branding a ranking factor in Google search engine?

Look, I think, to be fair, to be honest, that the technical answer to this question is no. However, I think when people say brand is powerful for SEO, that is a true statement. We're going to try and reconcile these two things. How can brand not be a ranking factor and yet be a powerful influencer of higher rankings in SEO? What's going to go on there?

What is a ranking factor, anyway?

Well, I'll tell you. So when folks say ranking factor, they're referring to something very technical, very specific, and that is an algorithmic input that Google measures directly and uses to determine rank position in their algorithm.

Okay, guess what? Brand almost certainly is not this.

Google doesn't try and go out and say, "How well known is Coca-Cola versus Pepsi versus 7 Up versus Sprite versus Jones Cola? Hey, let's rank Coca-Cola a little higher because they seem to have greater brand awareness, brand affinity than Pepsi." That is not something that Google will try and do. That's not something that's in their algorithm.

However, a big however, many things that are in Google's ranking algorithm correlate very well with brands.

Those things are probably used by Google in both direct and indirect ways.

So when you see sites that have done a great job of branding and also have good SEO best practices on them, you'll notice kind of a correlation, like boy, it sure does seem like the brands have been performing better and better in Google's rankings over the last four, five, or six years. I think this is due to two trends. One of those trends is that Google's algorithmic inputs have started favoring things that brands are better at and that what I'd call generic sites or non-branded sites, or businesses that have not invested in brand affinity have not done well.

Those things are things like links, where Google is rewarding better links rather than just more links. They're things around user and usage data, which Google previously didn't use a whole lot of signals around that. Same story with user experience. Same story with things like pogo sticking, which is probably one of the ways that they're measuring some of that stuff.

If we were to scatter plot it, we'd probably see something like this, where the better your brand performs as a brand, the higher and better it tends to perform in the rankings of Google search engine.

How does brand correlate to ranking signals?

Now, how is it that these brand signals that I'm talking about correlate more directly to ranking signals? Like why does this impact and influence? I think if we understand that, we can understand why we need to invest in brand and branding and where to invest in it as it relates to the web marketing kinds of things that we do for SEO.

One very clearly and very frankly is links. So when we talk about the links that Google wants to measure, wants to count today, those are organic, editorially earned links. They're not manipulative. They weren't bought. They tend not to be cajoled, they're earned.

Because of that, one of the best ways that folks have been earning links is to get people to come to their website and then have some fraction, some percentage of those folks naturally link to them without having to do any extra effort. It's basically like, "Hey, you made this great piece of content or this great product or great service or great data. Therefore, I'm going to reference it." Granted, that's a small percentage of people. There's still only maybe two or three out of a hundred folks who might visit your website on the Internet who actually have the power or ability to link to you because they control content on the web as opposed to just social sharing.

But when that happens, in a lot of cases folks go and they say, "Hmm, yeah, this content's good, but I've never heard of this brand before. I'm not sure if I should recommend it. It looks good, but I don't know them." Versus, "Oh, I love these folks. This is like one of my favorite companies or brands or products or experiences, and this content is great. I am totally going to link to it." Because that happens, even if that difference is small, even if the percent goes from 1% to 2%, well now, guess what? For every hundred visits, you're earning twice the links of your non-branded competitor.

Social signals

These are pretty much exactly the same thing. Folks who visit content, who have experiences with a company, with a product, or with a service, if they're familiar and comfortable with the brand, if they want to evangelize that brand, then guess what? You're going to get more social sharing per visit, per exposure than you would ordinarily, and that's going to lead to a cycle of more social sharing which leads to visits which probably leads to links.

User and usage data

It's also true that brand is going to impact user and usage data. So one of the most interesting patents, which we'll probably be talking about in a future Whiteboard Friday, was brought up recently by Bill Slowsky and looked at user and usage data. It was just granted to Google in the last month. It talked about how Google would look at the patterns of where web visitors would go and what their search experiences would be like. It would potentially say, "Hey, Google would like to reward sites that are getting organic traffic, not just from search, but traffic of all kinds on a particular topic."

So if it turns out that lots of people who are researching a vacation to Costa Rica end up going to Oyster.com, well, Google might say, "Hey, you know what? We've seen this pattern over and over again. Let's boost Oyster.com's rankings because it seems like people who look for this kind of content end up on this site. Not necessarily directly through us, through Google. They might end up on it through social media, through organic web links, through direct visits, through e-mail marketing, whatever it is."

When you're unbranded, one of the few ways that you can get traffic is through unbranded search. Search is one of those few channels that does drive traffic, or historically anyway did drive traffic to a lot of non-branded, less branded sites. Brands tend to earn traffic from a wide variety of sources. If you can start earning traffic from lots of sources and have the retention and the experience to drive people back again and again, well, probably you're going to benefit from some of these potential algorithmic shifts and future looking directions that Google's got.

Click-through rates

Same story a little bit when it comes to click-through rate. Now, we know from experience and testing that click-through rate is or appears to have a very direct impact on rankings. If lots of people are performing a search and they click on your website in position number four or five, and they're not clicking on position one, two, or three, you can bet that you're going to be moving up those rankings very, very quickly.

Granted there is some manipulative services out there that try and automate this. Some of them work for a little while. Most of them get shut down pretty quick. I wouldn't recommend investing in those. But I do recommend investing in brand, because when you have a recognizable brand, searchers are going to come here and they're going to go, "Oh, that one, maybe I haven't heard of it. That one, I've heard of it. That one, I haven't heard of it."

Guess what they're clicking on? The one they're already familiar with. The one they have a positive association with already. This is the power of brand advertising, and I think it's one of the big reasons why you've seen case studies from folks like Seer Interactive, talking about how a radio ad campaign or a billboard ad campaign seemed to have a positive lift in their SEO work as well. This phenomenon is going to mean that you're benefiting from every searcher who looks for something, even if you rank further down, if you're the better known brand.

So is brand a ranking factor? No, it's not. Is brand something that positively impacts SEO? Almost certainly in every niche, yes, it is.

All right. Looking forward to some great comments. I'll try and jump in there and answer any questions that I can. If you have experiences you want to share, we'd love to hear from you. Hopefully, we'll see you again next week for another edition of Whiteboard Friday. Take care.

Video transcription by Speechpad.com


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Your Daily SEO Fix: Week 2

Posted on: Thursday 28 May 2015 — 13:30

Posted by Trevor-Klein

Last week, we began posting short (< 2-minute) video tutorials that help you all get the most out of Moz's tools. Each tutorial is designed to solve a use case that we regularly hear about from Moz community members—a need or problem for which you all could use a solution.

Today, we've got a brand-new roundup of the most recent videos:

  • How to Examine and Analyze SERPs Using New MozBar Features
  • How to Boost Your Rankings through On-Page Optimization
  • How to Check Your Anchor Text Using Open Site Explorer
  • How to Do Keyword Research with OSE and the Keyword Difficulty Tool
  • How to Discover Keyword Opportunities in Moz Analytics

Let's get right down to business!

Fix 1: How to Examine and Analyze SERPs Using New MozBar Features

The MozBar is a handy tool that helps you access important SEO metrics while you surf the web. In this Daily SEO Fix, Abe shows you how to use this toolbar to examine and analyze SERPs and access keyword difficulty scores for a given page—in a single click.


Fix 2: How to Boost Your Rankings through On-Page Optimization

There are several on-page factors that influence your search engine rankings. In this Daily SEO Fix, Holly shows you how to use Moz's On-Page Optimization tool to identify pages on your website that could use some love and what you can do to improve them.


Fix 3: How to Check Your Anchor Text Using Open Site Explorer

Dive into OSE with Tori in this Daily SEO Fix to check out the anchor text opportunities for Moz.com. By highlighting all your anchor text you can discover other potential keyword ranking opportunities you might not have thought of before.


Fix 4: How to Do Keyword Research with OSE and the Keyword Difficulty Tool

Studying your competitors can help identify keyword opportunities for your own site. In this Daily SEO Fix, Jacki walks through how to use OSE to research the anchor text for competitors websites and how to use the Keyword Difficulty Tool to identify potential expansion opportunities for your site.


Fix 5: How to Discover Keyword Opportunities in Moz Analytics

Digesting organic traffic that is coming to your site is an easy way to surface potential keyword opportunities. In this Daily SEO Fix, Chiaryn walks through the keyword opportunity tab in Moz Analytics and highlights a quick tip for leveraging that tool.


Looking for more?

We've got more videos in last week's round-up! Check it out here.


Don't have a Pro subscription? No problem. Everything we cover in these Daily SEO Fix videos is available with a free 30-day trial.

Sounds good. Sign me up!


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