Time has grown more scarce after having a child, so I rarely blog anymore. Though I thought it probably made sense to make at least a quarterly(ish) post so people know I still exist.

One of the big things I have been noticing over the past year or so is an increasing level of automation in ways that are not particularly brilliant. :D

Just from this past week I've had 3 treat encounters on this front.

One marketplace closed my account after I made a bunch of big purchases, likely presuming the purchases were fraudulent based on the volume, new account & an IP address in an emerging market economy. I never asked for a refund or anything like that, but when I believe in something I usually push pretty hard, so I bought a lot. What was dumb about that is they took a person who would have been a whale client & a person they were repeatedly targeting with ads & turned them into a person who would not recommend them ... after being a paying client who spent a lot and had zero specific customer interactions or requests ... an all profit margin client who spent big and then they discarded. Dumb.

Similarly one ad network had my account automatically closed after I had not used it for a while. When I went to reactivate it the person in customer support told me it would be easier to just create a new account as reactivating it would take a half week or more. I said ok, went to set up a new account, and it was auto-banned and they did not disclose why. I asked feedback as to why and they said that they could not offer any but it was permanent and lifetime.

A few months go by and I wondered what was up with that and I logged into my inactive account & set up a subaccount and it worked right away. Weird. But then even there they offer automated suggestions and feedback on improving your account performance and some of them were just not rooted in fact. Worse yet, if they set the default targeting options to overly broad it can cause account issues in a country like Vietnam to where if you click to approve (or even auto approve!) their automated suggestions you then get notifications about how you are violating some sort of ToS or guidelines ... if they can run that logic *after* you activate *their* suggestions, why wouldn't they instead run that logic earlier? How well do they think you will trust & believe in their automated optimization tips if after you follow them you get warning pop overs?

Another big bonus recently was a client was mentioned in a stray spam email. The email wasn't from the client or me, but the fact that a random page on their site was mentioned in a stray spoofed email that got flagged as spam meant that when the ticket notification from the host sent wounded up in spam they never saw it and then the host simply took their site offline. Based on a single email sent from some other server.

Upon calling the host with a friendly WTF they explained to the customer that they had so many customers they have to automate everything. At the same time when it came time to restoring hosting that the client was paying for they suggested the client boot in secure mode, run Apache commands x and y, etc. ... even though they knew the problem was not with the server, but an overmalicious automated response to a stray mention in a singular spam email sent by some third party.

When the host tried to explain that they "have to" automate everything because they have so many customers the customer quickly cut them off with "No, that is a business choice. You could charge different prices or choose to reach out to people who have spent tens of thousands on hosting and have not had any issues in years." He also mentioned how emails can be sent to spam, or be sent to an inbox on the very web host that went offline & was then inaccessible. Then the lovely customer support person stated "I have heard that complaint before" meaning they are aware of the issue, but do not see it as an issue for them. When the customer said they should follow up any emails with an SMS for servers going offline the person said you could do it on your end & then later sent them a 14-page guide for how to integrate the Twillio API.

Nothing in the world is fair. Nothing in the world is equal. But there are smart ways to run a business & dumb ways to run a business.

If you have enough time to write a 14-page integration guide it probably makes sense to just incorporate the feature into the service so the guide is unneeded!

Businesses should treat their heavy spenders or customers with a long history of a clean account with more care than a newly opened account. I had a big hedge fund as a client who would sometimes want rush work done & would do stuff like "hey good job there, throw in an extra $10,000 for yourself as a bonus" on the calls. Whenever they called or emailed they got a quick response. :D

I sort of get that one small marketplace presuming my purchases might have been a scam based on how many I did, how new my account was, and how small they were, but the hosting companies & ad networks that are worth 9 to 12 figures should generally do a bit better. Though in many ways the market cap is a sign the entity is insulated from market pressures & can automate away customer service hoping that their existing base is big enough to offset the customer support horror stories that undermine their brand.

It works.

At least for a while.

A parallel to the above is my Facebook ad account, which was closed about a half decade or so ago due to geographic mismatch. That got removed, but then sort of only half way. If I go to run ads it says that I can't, but then if I go to request an account review to once again explain the geographic difference I can't even get the form to submit unless I edit the HTML of the page on the fly to seed the correct data into the form field as by default it says I can not request a review since I have no ad account.

The flip side of the above is if that level of automation can torch existing paid accounts you have to expect the big data search & social companies are taking a rather skeptical view of new sites or players wanting to rank freely in their organic search results or social feeds. With that being the case, it helps to seed what you can to provide many signals that may remove some of the risks of getting set in the bad pile.

I have seen loads of people have their YouTube or Facebook or whatever such account get torched & only override the automated technocratic persona non grata policies by having followers in another channel who shared their dire situation so it could get flagged for human review and restoration. If that happens to established & widely followed players who have spent years investing into a platform the odds of it happening to most newer sites & players is quite high.

You can play it safe and never say anything interesting, ensuring you are well within the Overtone Window in all aspects of life. That though also almost certainly guarantees failure as it is hard to catch up or build momentum if your defining attribute is being a conformist.

Google's mission statement is "organize the world's information and make it universally accessible and useful."

That mission is so profound & so important the associated court documents in their antitrust cases must be withheld from public consumption.

Hey. The full exhibit list just posted in DC federal court for USA vs Google. J/k, they literally posted the numbers of all of the admitted exhibits which would be unsealed in a sane world where public interest is respected even more so because the defendant is insanely powerful. pic.twitter.com/FViD40xVmf— Jason Kint (@jason_kint) September 23, 2023

Before document sharing was disallowed, some were shared publicly.

Internal emails stated:

• Hal Varian was off in his public interviews where he suggested it was the algorithms rather than the amount of data which is prime driver of relevancy.
• Apple would not get any revshare if there was a user choice screen & must set Google as the default search engine to qualify for any revshare.
• Google has a policy of being vague about using clickstream data to influence ranking, though they have heavily relied upon clickstream data to influence ranking. Advances in machine learning have made it easier to score content to where the clickstream data had become less important.
• When Apple Maps launched & Google Maps lost the default position on iOS Google Maps lost 60% of their iOS distribution, and that was with how poorly the Apple Maps roll out went.
• Google sometimes subverted their typical auction dynamics and would flip the order of the top 2 ads to boost ad revenues.
• Google had a policy of "shaking the cushions" to hit the quarterly numbers by changing advertiser ad prices without informing advertisers that they'd be competing in a rigged auction with artificially manipulated shill bids from the auctioneer competing against them.

When Google talked about hitting the quarterly numbers with shaking the cusions the 5% number which was shared skewed a bit low:

For a brand campaign focused on a niche product, she said the average CPC at $11.74 surged to $25.85 over the last six months, amounting to a 108% increase. However, there wasn’t an incremental return on sales.

“The level to which [price manipulations] happens is what we don’t know,” said Yang. “It’s shady business practices because there’s no regulation. They regulate themselves.”

Early in the history of search ads Google blocked trademark keyword bidding. They later allowed it. When keyword bidding on trademarks was allowed it led to a conundrum for some advertisers. If you do not defend your trademark you could lose it, but if you agree with competitors not to bid on each other's trademarks the FTC could come after you - like they did with 1-800 Contacts. This set up forces many brands to participate in auctions where they are arbitraging their own pre-existing brand equity. The ad auctioneer runs shady auctions where it looks across at your account behavior and bids then adjusts bid floors to suck more money out of you. This amounts to something akin to the bid jamming that was done in early Overture, except it is the house itself doing it to you! The last auction I remembered like that was SnapNames, where a criminal named Nelson Brady on the executive team used the handle halverez to leverage participant max bids and put in bids just under their bids. The goal of his fraud? To hit the numbers & get an earn out bonus - similar to how Google insiders were discussing "shaking the cushions" to hit the number.

Halverez created a program which looked across aggregate bid data, join auctions which only had 1 other participant, and then use the one-way view of competing bids to put in a shill bid to drive up costs - which sure sounds conceptually similar to Google's "shaking the cushions."

"Just looking at this very tactically, and sorry to go into this level of detail, but based on where we are I'm afraid it's warranted. We are short __% queries and are ahead on ads launches so are short __% revenue vs. plan. If we don't hit plan, our sales team doesn't get its quota for the second quarter in a row and we miss the street's expectations again, which is not what Ruth signaled to the street so we get punished pretty badly in the market. We are shaking the cushions on launches and have some candidates in May that will help, but if these break in mid-late May we only get half a quarter of impact or less, which means we need __% excess to where we are today and can't do it alone. The Search team is working together with us to accelerate a launch out of a new mobile layout by the end of May that will be very revenue positive (exact numbers still moving), but that still won't be enough. Our best shot at making the quarter is if we get an injection of at least __%, ideally __%, queries ASAP from Chrome. Some folks on our side are running a more detailed, Finance-based, what-if analysis on this and should be done with that in a couple of days, but I expect that these will be the rough numbers.

The question we are all faced with is how badly do we want to hit our numbers this quarter? We need to make this choice ASAP. I care more about revenue than the average person but think we can all agree that for all of our teams trying to live in high cost areas another $___,___ in stock price loss will not be great for morale, not to mention the huge impact on our sales team." - Google VP Jerry Dischler

Google is also pushing advertisers away from keyword-based bidding and toward a portfolio approach of automated bidding called Performance Max, where you give Google your credit card and budget then they bid as they wish. By blending everything into a single soup you may not know where the waste is & it may not be particularly easy to opt out of poorly performing areas. Remember enhanced AdWords campaigns?

Google continues to blur dataflow outside of their ad auctions to try to bring more of the ad spend into their auctions.

Wow. Google. Years behind other browsers (aka monopoly power), Google is attempting to deprecate tracking system A (aka third party cookies) and replace it with another tracking system B (aka Topics) that treats sites as G data mules.

This is deceptive as hell comparing B to A. pic.twitter.com/hCBJgYr7qn— Jason Kint (@jason_kint) September 22, 2023

The amount Google is paying Apple to be the default search provider is staggering.

What is $18 billion / year buying ? The DoJ has narrowed in an agreement not to compete between Apple and Google: "Sanford Bernstein estimates Google will pay Apple between $18 billion and $19 billion this year for default search status" https://t.co/HmoZxCZkqm— Tim Wu (@superwuster) September 22, 2023

Tens of billions of dollars is a huge payday. No way Google would hyper-optimize other aspects of their business (locating data centers near dams, prohibiting use of credit card payments for large advertisers, cutting away ad agency management fees, buying Android, launching Chrome, using broken HTML on YouTube to make it render slowly on Firefox & Microsoft Edge to push Chrome distribution, all the dirty stuff Google did to violate user privacy with overriding Safari cookies, buying DoubleClick, stealing the ad spend from banned publishers rather than rebating it to advertisers, creating a proprietary version of HTML & force ranking it above other results to stop header bidding, & then routing around their internal firewall on display ads to give their house ads the advantage in their ad auctions, etc etc etc) and then just throw over a billion dollars a month needlessly at a syndication partner.

This is right -- Google was once an extraordinary product, but over time became stagnant & too grabby of random revenue as it ate its ecosystem. Makes it the right time to force Google to try and compete without reaching for its bribery checkbook
https://t.co/gDhtDMjfo0— Tim Wu (@superwuster) September 22, 2023

For perspective on the scale of those payments consider that it wasn't that long ago Yahoo! was considered a big player in search and Apollo bought Yahoo! plus AOL from Verizon for about $5 billion & then was quickly able to sell branding & technology rights in Japan to Softbank for $1.6 billion & other miscellaneous assets for nearly a half-billion, reducing the net cost to only $3 billion.

If Google loses this lawsuit and the payments to Apple are declared illegal, that would be a huge revenue (and profit) hit for Apple. Apple would be forced to roll out their own search engine. This would cut away at least 30% of the search market from Google & it would give publishers another distribution channel. Most likely Apple Search would launch with a lower ad density than Google has for short term PR purposes & publishers would have a year or two of enhanced distribution before Apple's ad load matched Google's ad load.

It is hard to overstate how strong Apple's brand is. For many people the cell phone is like a family member. I recently went to upgrade my phone and Apple's local store closed early in the evening at 8pm. The next day when they opened at 10 there was a line to wait in to enter the store, like someone was trying to get concert tickets. Each privacy snafu from Google helps strengthen Apple's relative brand position.

Google has also diluted the quality of their own brand by rewriting search queries excessively to redirect traffic flows toward more commercial interests. Wired covered how Project Mercury works:

This onscreen Google slide had to do with a “semantic matching” overhaul to its SERP algorithm. When you enter a query, you might expect a search engine to incorporate synonyms into the algorithm as well as text phrase pairings in natural language processing. But this overhaul went further, actually altering queries to generate more commercial results. ... Most scams follow an elementary bait-and-switch technique, where the scoundrel lures you in with attractive bait and then, at the right time, switches to a different option. But Google “innovated” by reversing the scam, first switching your query, then letting you believe you were getting the best search engine results. This is a magic trick that Google could only pull off after monopolizing the search engine market, giving consumers the false impression that it is incomparably great, only because you’ve grown so accustomed to it.

The mobile search results on Google require at least a screen or two of scrolls to get to the organic results if there is a hint of commercial intent behind the search query. Once they have monetized the real estate they are reliant on broader economic growth & using ad buy bundling to drive cross-subsidies of other non-search ad inventory, which may contain more than a bit of fraud. Performance Max may max out your spend without actually performing for anybody other than Google.

Google not only shill bid on lower competition terms to squeeze defensive brand bids and boost auction floor pricing, but they also implemented shill bids in competitive ad auctions:

Michael Whinston, a professor of economics at the Massachusetts Institute of Technology, said Friday that Google modified the way it sold text ads via “Project Momiji” – named for the wooden Japanese dolls that have a hidden space for friends to exchange secret messages. The shift sought “to raise the prices against the highest bidder,” Whinston told Judge Amit Mehta in federal court in Washington.

While Google's search marketshare is rock solid, the number of search engines available has increased significantly over the past few years. Not only is there Bing and DuckDuckGo but the tail is longer than it was a few years back. In addition to regional players like Baidu and Yandex there's now Brave Search, Mojeek, Qwant, Yep, and You. GigaBlast and Neeva went away, but anything that prohibits selling defaults to a company with over 90% marketshare will likely lead to dozens more players joining the search game. Search traffic will remain lucrative for whoever can capture it, as no matter how much Google tries to obfuscate marketing data the search query reflects the intent of the end user.

“Search advertising is one of the world’s greatest business models ever created…there are certainly illicit businesses (cigarettes or drugs) that could rival these economics, but we are fortunate to have an amazing business.” - Google VP of Finance Mike Roszak