joi, 19 aprilie 2012

Why Big Brands Get All the Breaks

Why Big Brands Get All the Breaks


Why Big Brands Get All the Breaks

Posted: 18 Apr 2012 12:20 PM PDT

Posted by Dr. Pete

If you live outside of the ivory walls of the Fortune 500, it can sometimes seem like Google gives big brands all the breaks. This isn’t just sour grapes – some examples are very public. When JC Penney and Overstock got a slap on the wrist for widespread and intentional link manipulation, it was hard not to feel slighted.

There’s been a lot of debate about how Google, both manually and algorithmically, may favor big brands, but I think the debate misses something more fundamental. Since the beginning of the internet, the eventual advantage of big brands was only a matter of time. This post is about why I think that advantage was inevitable, why it’s not going away, and what you can do to compete.

The Wild West

In the early days of the public internet, building a website was like heading into the Wild West – all you needed to stake your claim was a wagon and a frontier spirit, as long as you survived the cholera, dysentery, starvation, and bear attacks (i.e. learning HTML)…

Lone home on the internet range

Sure, you didn’t get many visitors, but at least it was quiet and no one minded if you wallpapered your house with dancing hamsters. Then, along came the search engines. At first, it was great – the pioneers got all the visitors. With the allure of free land and free customers, though, the quiet didn’t last…

Internet settlers begin to arrive.

Much to the dismay of early adopters, it didn’t stop at a few neighbors. Pretty soon, people started to make real money online, and along came…

The Gold Rush

Big brands didn’t rush to the internet early on because they simply didn’t have any reason to. They let the pioneers do the hard work of drawing the maps and clearing the brush, until the first prospector discovered gold. When online-only brands started to draw sky-high IPOs and generate ad revenue, the big brands took notice, and the dot-com bubble started to inflate…

Big brands take over - "Ma, get my gun!"

Before this becomes a history lesson, let me cut to the point. The risks in any uncharted territory are often taken by the people who have nothing to lose, and that’s not the big brands. As soon as there was gold to be had, the companies with money and power made their move to claim it. The early movers had an advantage, but it wasn’t destined to last forever.

Googling for Gold

So, what does all of this have to do with Google?  While Google probably has made changes along the way that favor big brands (like 2009’s “Vince” update), I suspect that many of the changes in the search landscape really just reflect the broader evolution of the internet. In other words, as big brands followed the gold, so did Google.

Over time, signals that favor brand-building have naturally found their way into the algorithm. Let’s step back from any specific algorithm update and look at the progression of ranking signals since the early days of search engines…

1993+, On-page ranking signals, Weak brand influence

Declaring the “first” search engine is an argument waiting to happen, but I’m going to pin the launch of mainstream search around the time of Excite in 1993. The early engines relied almost exclusively on on-page ranking signals, like keywords in page titles, content, and (at the time) META tags. This leveled the playing field for a lot of small businesses, as anyone could create content that was keyword-targeted. Big brands could exert their influence by spending more money, but the direct influence of their brands on on-page signals was fairly weak.

Of course, the downside of on-page signals is that they were also easy to game, and the early search engines suffered from a lot of spam and quality issues. Then, along came Larry and Sergey and their PageRank algorithm, which relied on links to rank websites. In 1998, Google officially launched to the public…

1998+, Links as ranking signals, Medium brand influence

Link-based rankings gradually gave big brands more of an advantage – their offline presence naturally led to news articles and write-ups, and they began to collect strong link profiles. I call this influence “Medium” because it was mostly indirect. Link buying was (and is) strongly discouraged, so big brands had to work through one-off channels, such as viral marketing.

What’s important to note here is that Google didn’t create PageRank and the link-graph specifically to hand big brands an advantage. They created PageRank as a response to the declining quality of search results powered only by on-page signals.

In 2009, with the success of social media sites like Twitter, Google launched real-time search. Soon after, both Google and Bing would begin to integrate social signals into the algorithm…

2009+, Social signals, Strong brand influence

While the impact of social signals on ranking is still evolving, these signals are directly influenced by the power of a brand. Offline advertising drives brand awareness and mentions and this directly leads to social media activity. As social mentions begin to affect ranking more and more, brands now have a direct channel for their influence to impact SEO.

Step 1 - Get Over It

So, what can you do about the advantage that big brands have in the evolving internet landscape? First, some tough love – you have to get over it. This was inevitable, and whether or not Google was complicit to some degree doesn’t matter. The internet was destined to reflect the offline world, and in the offline world big brands are rich and powerful. We had a nice run, but it was naïve to expect that to last forever.

Step 2 - Act Like a Brand

Ok, so Step 1 wasn’t very helpful. I see too many SEO situations where people obsess about the competition and what’s “fair” – it’s time to step back and learn from the big brands. If your entire focus is on a few on-page factors and manual link-building, you’ll live and die by the algorithm. Big brands are part of the public consciousness – they bombard us on multiple channels, and don’t put all of their eggs in the Google basket.

Obviously, you can’t spend billions of dollars simply trying to implant your brand in people’s brains, but you can tap into the brand awareness you already have. Somewhere, your product or service – if it’s at all decent – has fans and evangelists. Engage with them, reward them, and start thinking about your brand as more than just Top 10 rankings. Social media is a perfect place to start – stop just Tweeting links and begging for Likes and build relationships. In other words, stop focusing on the direct SEO impact so much and start looking at the health of your brand outside of search.

Step 3 - Be a Pioneer (Again)

Search is changing faster than ever. I’ve seen too many companies recently that rely on Google for their survival and have watched their rankings slip over the past year or two. Many of these are good businesses run by good people, but they’re also businesses who made good on SEO years ago and, at some point, started to coast. Meanwhile, the internet changed, the algorithm changed, and the competition changed. If you’re resting on your laurels from 2005, you’re in for a wake-up call. It may not be tomorrow, but it will happen, and it will happen quickly and without mercy.

The early movers had an advantage on the internet because they were willing to take risks that the big brands couldn’t. You can’t live forever in the glory days of being the first person to set up shop. It’s time to branch out again – get active on social channels, including new and unproven channels. Try out new tags and on-page approaches (like Schemas). They won’t all work, but when they do, you’ll be somewhere that the big brands aren’t yet. Your greatest power as a small to mid-sized business is agility. You can set up a social profile or add a few pages to your site without a committee meeting, budget approval, and 6 months of deliberation. That’s a 6-month head-start, but to get it you have to move now.


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Tell Us About Your Favorite Dashboard!

Posted: 18 Apr 2012 05:48 AM PDT

Posted by Karen Semyan

One of the recent water cooler conversations around the Mozplex has been about dashboards. The question: What makes a great dashboard? We all use these top-level reports in various apps everyday, for professional and personal reasons, and some are better than others. 

At their best, these reports can do an amazing job of making our work more efficient. You check the dashboard, review your progress, gather some insights, and know what to do next. Etta James cues up, the clouds part, sunshine beams down on your desk, and a unicorn gallops in slow motion past your office window. 

But at their worst, dashboards are lacking in useful info, cluttered, or convoluted. They amount to one more click between you and the real details you need in an app, adding to the clown-car cycle of chasing down your next actions. 

So we put the question to you...

What dashboards give you your “At Last” moment? Or are at least useful? What features on those dashboards are the most useful?  

Take moment and fill out this survey and share your thoughts.

To get you thinking about this, here are some some favorites from Mozzers, in no particular order:

WebTrends

Rand says: Beautiful UI/UX, fun to look at, colorful, bleeding edge. 
Miranda says: Clean design, interesting use of typography, and nice supporting visuals.

WebTrends sample dashboard

Mint

Courtney says: It’s super detailed and yet, I know what to do what to do at first glance. The yellow, green, red indicators show my progress and warn me when I’m approaching or over budget. Alerts at the top of the page provide insights into how I’m doing and what I can do better. Goals provide easy benchmarking. This holistic view paints the entire picture in a way that is easy to digest and suggests actions, and I love that I can dig deeper into any of these topics with a single click (or two).

Mint dashboard

New Relic

Thomas says: I get quick access to recent over-time data for the most important metric in a way that can be dissected easily. A statistical score for most important metrics, plus traffic. You can change the timeframe quickly. They provide alerts, have nice use of color, and use consistent help-hovers.

New Relic dashboard sample

GeckoBoard 

Adam says: It’s perhaps not the most beautiful dashboard, but it’s broadly customizable. There’s something to be said for a big bold dashboard that shows off your key daily metrics in big bold type.

GeckoBoard sample

AdWords

Joanna says: For me a dashboard needs to both summarize the movement of my data but also suggest a next step. I think Adwords does a solid job, but I also find that paid marketing platforms in general do a great job of surfacing the changes I should prioritize investigating. For me its all about summarizing and prioritizing...and it being pretty of course. Give me all that and I'm not going anywhere.

WordPress 

Rand says: It gets me all the info I need, and it’s customizable.

KISSInsights

Joanna says: KISSInsights has test summaries and important info, all laid out very digestibly. 



More favorites include: 

Mixpanel

Mixpanel dashboard

SimplyMeasured

Chartbeat

Please share your favorites with us!

 


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Photo: President Obama on the Rosa Parks Bus

The White House Your Daily Snapshot for
Thursday, April 19, 2012
 

Photo: President Obama on the Rosa Parks Bus

Photo of the Day 041912 

President Barack Obama sits on the famed Rosa Parks bus at the Henry Ford Museum following an event in Dearborn, Mich., April 18, 2012. (Official White House Photo by Pete Souza)

In Case You Missed It

Here are some of the top stories from the White House blog:

President Obama Talks About Investing in Training American Workers
The President was in Ohio to talk about job training initiatives to help more Americans get back to work and connect unemployed Americans with the skills training they need to find jobs in high-demand, high-growth industries

By the Numbers: 1 in 3
According to the Centers for Disease Control and Prevention, 1 in 3 women in the United States have experienced rape, physical violence and/or stalking by an intimate partner at some time in their lives.

White House White Board: President Obama's Plan for Refinancing
Brian Deese explains President Obama's plan to help more homeowners refinance their mortgages at today's historically low interest rates in the latest White House White Board.

Today's Schedule

All times are Eastern Daylight Time (EDT).

10:30 AM: The President receives the Presidential Daily Briefing

12:00 PM: The President meets with senior advisors

1:15 PM: Press Briefing by Press Secretary Jay Carney WhiteHouse.gov/live

2:20 PM: The President welcomes the BCS National Champion University of Alabama Crimson Tide to the White House to honor their 14th championship WhiteHouse.gov/live

4:20 PM: The President attends a campaign event

WhiteHouse.gov/live Indicates that the event will be live-streamed on WhiteHouse.gov/Live

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Seth's Blog : Bandits and philanthropists

Bandits and philanthropists

The web is minting both, in quantity.

Bandits want something for nothing. They take. They take free content where they can find it. They fight for anonymity, for less community involvement. They want more than their fair share, and they walk past the busker, because they can hear him playing real good, for free.

The spammer is a bandit, stealing your attention because he can get away with it, and leaving nothing in return.

Philanthropists see a platform for giving. They support the tip jar. They argue for community standards and yes, for taxes that are more fair to the community. They support artists online, and when they can, they buy the book.

The artist who creates a video that touches you, or an infographic that informs you--she's giving more than she gets, leaving the community better than it was before she got there.

Both types have been around forever, of course. But the web magnifies the edges. It's easier than ever to be a free rider, to make your world smaller and to take. And easier than ever to be a big time contributor, even if you don't have any money. You can contribute your links or your attention or your energy...

The fascinating thing for me is how much more successful and happy the philanthropists are. It turns out that when you make the world smaller, you get to keep more of what you've got, but you end up earning a lot less (respect, connections, revenue) at the same time.



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miercuri, 18 aprilie 2012

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


IMF Chief Jackass Calls for Taxpayer-Funded Bank Recapitalisations to Avoid Painful Deleveraging; Mish Says Fire the Parasites and Disband the IMF

Posted: 18 Apr 2012 12:24 PM PDT

Yesterday TrimTabs president & CEO, Charles Biderman, proposed Firing All Government Economists and Disbanding the BLS, BEA and Census Bureau

I countered with ...

"Biderman's proposal a mere down payment on what needs to happen. In addition to getting rid of the BLS, the BEA, and the census bureau, we also need to get rid of the Fed, the department of energy, student loans, crop subsidies, the small business association, Davis-Bacon, prevailing wage laws, collective bargaining, and all sorts of other programs that at best accomplish nothing at tremendous cost, and in most cases do further economic damage because of graft, inefficiencies, and bad reporting."

Neither of us mentioned the ECB, central bankers in general, or the focus of this column, the IMF.


IMF Chief Jackass Calls for Taxpayer-Funded Bank Recapitalisations

Please consider the Financial Times article IMF sees banks deleveraging by $2.6tn
A drastic contraction of European bank balance sheets during the next 18 months could jeopardise financial stability and economic growth in Europe and beyond, according to forecasts from the International Monetary Fund.

In its Global Financial Stability Report, published on Wednesday, the fund warned that European banks looked set to shrink their balance sheets by $2.6tn (€2tn) over that period. Unless officials improved their policy response, the IMF said, European banks would dump almost 7 per cent of their assets by the end of next year.

José Viñals, director of the monetary and capital markets department at the fund, said: "The key is to recapitalise, restructure and resolve."

The warning comes a day after Olivier Blanchard, the fund's chief economist jackass, called for taxpayer-funded bank recapitalisations to be put back on the policy agenda to counter the risk of a painful deleveraging.
Fire the Parasites and Disband the IMF

Did taxpayers force banks to make stupid loans? If not, why should taxpayers bail out the banks and bondholders?

Have the efforts to do that worked so far? Is Greece in better shape? Portugal?

Did housing prices in the US recover after US taxpayers bailed out Fannie Mae and Freddie Mac bondholders such as PIMCO?

Take a good look at Iceland. It is recovering because Iceland made banks and bondholders take a hit. Instead, the IMF wants to burden already over-burdened taxpayers so the likes of banks and bondholders (the wealthy class) can be made whole.

Supposedly this will get banks to lend. How can it? Taxpayers have seen prices rise, wages fall, and taxes go up, all of which leaves them in a much worse position to borrow and spend.

Who exactly do these jackasses represent?

The answer is obvious. The IMF is not setup to help countries or taxpayers, it was created to rob countries, rob taxpayers, and generally wreak havoc in times of trouble just so the wealthy class can be bailed out again, and again, and again, whenever the banks and bondholders get in trouble by taking on excessive risk.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Economic Madness; Bank of Japan Threatens More QE to Meet 1% Inflation Target

Posted: 18 Apr 2012 09:26 AM PDT

The last thing Japan really needs is to kick off a bout of inflation. At a mere 2% interest rate or so, interest on its national debt would consume all revenues. Nonetheless, the Wall Street Journal reports BOJ Ready to Take Additional Steps
The Bank of Japan stands ready to take additional steps as needed to achieve its price goal, a deputy governor of the central bank said Wednesday, amid strong expectations it will act at its policy-board meeting next week.

"The bank is committed to implementing additional easing measures if deemed necessary," Kiyohiko Nishimura told business executives in a speech in Okayama, western Japan.

"We will pursue powerful easing through a virtually zero interest-rate policy and asset buying until the 1% goal comes into view," he told business leaders.

Market participants took Mr. Nishimura's comments as confirmation the bank will act at its meeting next week, which will follow close on the meeting of the U.S. Federal Reserve's Federal Open Market Committee on April 24 and 25.

"The BOJ will ease its policy even without the Fed's action. That's the market's understanding. Nishimura's comments today confirmed that," said Atsushi Ito, a senior analyst at UBS Securities in Tokyo
Economic Madness

Japan's aging society benefits from low prices and low taxes. However, politicians want to raise taxes which would tend to strengthen the Yen, while the Bank of Japan wants to print money to weaken the Yen.

If this is not economic madness what is?

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Hopeless Situation in Spain: New Wave of Defaults as Home Prices Crash; Bad Loans Highest Since Oct '94

Posted: 18 Apr 2012 08:32 AM PDT

Bad news upon bad news keeps piling up in Spain as the government still insists it can meet deficit targets without needing a bailout. Anyone with any common sense knows there is no can left to kick.

Reuters reports Spain banks' bad loans highest since Oct '94

  • Non-performing loans rise to 8.2 pct of portfolios
  • House prices fall 7.2 pct in Q1
  • Defaults to keep rising on back of budget cuts

Spanish banks' bad loans rose to their highest level since Oct. 1994 in February, to 8.2 percent of their credit portfolios, Bank of Spain data showed on Wednesday, as the sector continues to battle sliding house prices and a looming recession.

Banks are facing a new wave of loan defaults as an economic crisis deepens and analysts say some may not survive as the government implements sweeping budget cuts that will only add to Spanish households' problems with repaying debt.

Non-performing loans increased by 3.8 billion euros ($4.99 billion) to 143.8 billion euros in February from the previous month. They totalled 7.9 percent of total debt portfolios in January.

That picture - driven by the collapse of a housing boom in the global financial turmoil of 2008 - is at the heart of problems for Spanish banks that have seen other institutions refuse to lend to them and forced some to rely on the European Central Bank for funding.
Hopeless Situation

Back on March 28, my friend Pater Tenebrarum on the Acting Man blog pinged me with the following comments.
The situation is totally hopeless. If banks were to raise their puny loan loss provisions by just 1% of total loan exposure, it would eat 12% of their tangible net asset value.

These banks are completely insolvent. I actually think all of Spain is bankrupt at every level of its society, from households to banks to the government.

Apart from their exposure to €200 billion in 'problem loans' (to developers, consumers and in the form of already foreclosed loans), they have an additional exposure to €1.6 trillion in 'other loans', including mortgages, of which they say only 2.4% are delinquent (a certain bridge in Brooklyn comes to mind).

It looks to me like Spain will become a huge problem for the eurocracy.
Yes indeed, it already has.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Are Oil Embargoes Hurting Iran or the US? Obama Blames Oil Manipulators; Who are the Real Manipulators?

Posted: 18 Apr 2012 01:51 AM PDT

The US and European embargo of Iranian oil is one of the factors behind the stubbornly high price of crude, trumping the huge slump in petroleum demand in the US. Although Iranian oil exports are down 33%, Iran is on a course for its third largest oil-related earnings ever. Thus, the primary beneficiary of high oil prices is Iran.

Rather than blame himself for the absurdity of the situation, president Obama blames oil speculators.

High Oil Prices Shield Iran From Sanctions

The Financial Times reports High Oil Prices Shield Iran From Sanctions.
The Centre for Global Energy Studies (CGES), a London-based think-tank, estimates that Iran will earn $56bn selling its crude this year – its third-highest earnings ever – even after factoring in the loss of roughly a third of its export volume due to sanctions.

Washington has imposed sanctions to penalise foreign financial institutions dealing with Iran's central bank, while Brussels has approved a full embargo on Iranian crude oil starting formally from July 1.

The western allies are trying to achieve a difficult balance: hurt Iran enough to force it to negotiate over its nuclear programme, but keep enough oil flowing to avoid a price spike that damages the fragile economic recovery.

"The sanctions are not working," said Olivier Jakob, head of the Swiss-based oil consultancy Petromatrix, in a note to clients. "They are definitely hurting Iran as it limits its [crude oil] exports, but they are also hurting the rest of the world, given that the western powers have not managed to control prices."
Iran has had a hard time repatriating those earnings but Iran's president, says Tehran has enough savings to survive until 2015. "We have as much hard currency as we need, and the country will manage well, even if we don't sell a single barrel of oil for two or three years."

It's difficult to know if that is a bluff or reality. However, artificially high oil prices are certainly not helping the global economy.

Obama Blames Oil Manipulators

Please consider Obama proposes steps to curb oil market manipulation
Facing heat for high gasoline prices, President Obama tried to shift the focus to Congress, Republicans and energy traders, calling for legislation that he said would "put more cops on the beat" to crack down on potential manipulation of the oil market.

Obama called on Congress to provide more money for regulators and increase penalties for market manipulators. The president, flanked by Treasury Secretary Timothy F. Geithnerand Atty. Gen. Eric H. Holder Jr., suggested that traders and speculators are affecting the price of oil and digging into Americans' pocketbooks.

"We can't afford a situation where some speculators can reap millions while millions of American families get the short end of the stick," Obama said in brief remarks in the Rose Garden on Tuesday. "That's not the way the market should work."
Who is the Real Manipulator?

Multiple ironies abound in Obama's lecture about "market" forces.

Besides Obama's own influence on the price of oil, the Fed artificially holding interest rates low is "not the way the market should work" either.

The very idea that 10 alleged wizards can sit in a room eight times a year and divine the proper interest rate to steer the economy is preposterous. Indeed that is precisely "not the way the market should work" and in fact cannot possibly work.

Proof is easy to find. We have had bubble after bubble after bubble, each with increasing amplitude, each with bank bailouts, each causing greater and greater income disparity, and ultimately culminating in the biggest housing bust in history.

History proves there have are no wizards on the FOMC, only economic and academic jackasses. Yet eight times a year, those jackasses sit in a room and set policy. Worse yet, they are arrogant enough to believe they, not the market, know what is best for the economy.

Then to top it off, we have to listen to an Obama lecture on the market when it is his own policies coupled with inane Fed policies that are the real cause of high oil prices.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List