Upon the recently announced Google update I've seen some people Tweet things like

• if you are afraid of algorithm updates, you must be a crappy SEO
• if you are technically perfect in your SEO, updates will only help you

I read those sorts of lines and cringe.

Here's why...

Fragility

Different businesses, business models, and business structures have varying degrees of fragility.

If your business is almost entirely based on serving clients then no matter what you do there is going to be a diverse range of outcomes for clients on any major update.

Let's say 40% of your clients are utterly unaffected by an update & of those who saw any noticeable impact there was a 2:1 ratio in your favor, with twice as many clients improving as falling.

Is that a good update? Does that work well for you?

If you do nothing other than client services as your entire business model, then that update will likely suck for you even though the net client impact was positive.

Why?

Many businesses are hurting after the Covid-19 crisis. Entire categories have been gutted & many people are looking for any reason possible to pull back on budget. Some of the clients who won big on the update might end up cutting their SEO budget figuring they had already won big and that problem was already sorted.

Some of the clients that fell hard are also likely to either cut their budget or call endlessly asking for updates and stressing the hell out of your team.

Capacity Utilization Impacts Profit Margins

Your capacity utilization depends on how high you can keep your steady state load relative to what your load looks like at peaks. When there are big updates management or founders can decide to work double shifts and do other things to temporarily deal with increased loads at the peak, but that can still be stressful as hell & eat away at your mental and physical health as sleep and exercise are curtailed while diet gets worse. The stress can be immense if clients want results almost immediately & the next big algorithm update which reflects your current work may not happen for another quarter year.

How many clients want to be told that their investments went sour but the problem was they needed to double their investment while cashflow is tight and wait a season or two while holding on to hope?

Category-based Fragility

Businesses which appear to be diversified often are not.

• Everything in hospitality was clipped by Covid-19.
• 40% of small businesses across the United States have stopped making rent payments.
• When restaurants massively close that's going to hit Yelp's business hard.
• Auto sales are off sharply.

Likewise there can be other commonalities in sites which get hit during an update. Not only could it include business category, but it could also be business size, promotional strategies, etc.

Sustained profits either come from brand strength, creative differentiation, or systemization. Many prospective clients do not have the budget to build a strong brand nor the willingness to create something that is truly differentiated. That leaves systemization. Systemization can leave footprints which act as statistical outliers that can be easily neutralized.

Sharp changes can happen at any point in time.

For years Google was funding absolute garbage like Mahalo autogenerated spam and eHow with each month being a new record. It is very hard to say "we are doing it wrong" or "we need to change everything" when it works month after month after month.

Then an update happens and poof.

• Was eHow decent back in the first Internet bubble? Sure. But it lost money.
• Was it decent after it got bought out for a song and had the paywall dropped in favor of using the new Google AdSense program? Sure.
• Was it decent the day Demand Media acquired it? Sure.
• Was it decent on the day of the Demand Media IPO? Almost certainly not. But there was a lag between that day and getting penalized.

Panda Trivia

The first Panda update missed eHow because journalists were so outraged by the narrative associated with the pump-n-dump IPO. They feared their jobs going away and being displaced by that low level garbage, particularly as the market cap of Demand Media eclipsed the New York Times.

Journalist coverage of the pump-n-dump IPO added credence to it from an algorithmic perspective. By constantly writing hate about eHow they made eHow look like a popular brand, generating algorithmic signals that carried the site until Google created an extension which allowed journalists and other webmasters to vote against the site they had been voting for through all their outrage coverage.

Algorithms & the Very Visible Hand

And all algorithmic channels like organic search, the Facebook news feed, or Amazon's product pages go through large shifts across time. If they don't, they get gamed, repetitive, and lose relevance as consumer tastes change and upstarts like Tiktok emerge.

Consolidation by the Attention Merchants

Frequent product updates, cloning of upstarts, or outright acquisitions are required to maintain control of distribution:

"The startups of the Rebellion benefited tremendously from 2009 to 2012. But from 2013 on, the spoils of smartphone growth went to an entirely different group: the Empire. ... A network effect to engage your users, AND preferred distribution channels to grow, AND the best resources to build products? Oh my! It’s no wonder why the Empire has captured so much smartphone value and created a dark time for the Rebellion. ... Now startups are fighting for only 5% of the top spots as the Top Free Apps list is dominated by incumbents. Facebook (4 apps), Google (6 apps), and Amazon (4 apps) EACH have as many apps in the Top 100 list as all the new startups combined."

Apple & Amazon

Emojis are popular, so those features got copied, those apps got blocked & then apps using the official emojis also got blocked from distribution. The same thing happens with products on Amazon.com in terms of getting undercut by a house brand which was funded by using the vendor's sales data. Re-buy your brand or else.

Facebook

Before the Facebook IPO some thought buying Zynga shares was a backdoor way to invest into Facebook because gaming was such a large part of the ecosystem. That turned out to be a dumb thesis and horrible trade. At times other things trended including quizzes, videos, live videos, news, self hosted Instant Articles, etc.

Over time the general trend was edge rank of professional publishers fell as a greater share of inventory went to content from friends & advertisers. The metrics associated with the ads often overstated their contribution to sales due to bogus math and selection bias.

Internet-first publishers like CollegeHumor struggled to keep up with the changes & influencers waiting for a Facebook deal had to monetize using third parties:

“I did 1.8 billion views last year,” [Ryan Hamilton] said. “I made no money from Facebook. Not even a dollar.” ... "While waiting for Facebook to invite them into a revenue-sharing program, some influencers struck deals with viral publishers such as Diply and LittleThings, which paid the creators to share links on their pages. Those publishers paid top influencers around $500 per link, often with multiple links being posted per day, according to a person who reached such deals."

YouTube

YouTube had a Panda-like update back in 2012 to favor watch time over raw view counts. They also adjust the ranking algorithms on breaking news topics to favor large & trusted channels over conspiracy theorist content, alternative health advice, hate speech & ridiculous memes like the Tide pod challenge.

All unproven channels need to start somewhat open to gain usage, feedback & marketshare. Once they become real businesses they clamp down. Some of the clamp down can be editorial, forced by regulators, or simply anticompetitive monpolistic abuse.

Kid videos were a huge area on YouTube (perhaps still are) but that area got cleaned up after autogenerated junk videos were covered & the FTC clipped YouTube for delivering targeted ads on channels which primarily catered to children.

Dominant channels can enforce tying & bundling to wipe out competitors:

"Google’s response to the threat from AppNexus was that of a classic monopolist. They announced that YouTube would no longer allow third-party advertising technology. This was a devastating move for AppNexus and other independent ad technology companies. YouTube was (and is) the largest ad-supported video publisher, with more than 50% market share in most major markets. ... Over the next few months, Google’s ad technology team went to each of our clients and told them that, regardless of how much they liked working with AppNexus, they would have to also use Google’s ad technology products to continue buying YouTube. This is the definition of bundling, and we had no recourse. Even WPP, our largest customer and largest investors, had no choice but to start using Google’s technology. AppNexus growth slowed, and we were forced to lay off 100 employees in 2016."

Everyone Else

Every moderately large platform like eBay, Etsy, Zillow, TripAdvisor or the above sorts of companies runs into these sorts of issues with changing distribution & how they charge for distribution.

Building Anti-fragility Into Your Business Model

Growing as fast as you can until the economy craters or an algorithm clips you almost guarantees a hard fall along with an inability to deal with it.

Markets ebb and flow. And that would be true even if the above algorithmic platforms did not make large, sudden shifts.

Build Optionality Into Your Business Model

If your business primarily relies on publishing your own websites or you have a mix of a few clients and your own sites then you have a bit more optionality to your approach in dealing with updates.

Even if you only have one site and your business goes to crap maybe you at least temporarily take on a few more consulting clients or do other gig work to make ends meet.

Focus on What is Working

If you have a number of websites you can pour more resources into whatever sites reacted positively to the update while (at least temporarily) ignoring any site that was burned to a crisp.

Ignore the Dead Projects

The holding cost of many websites is close to zero unless they use proprietary and complex content management systems. Waiting out a penalty until you run out of obvious improvements on your winning sites is not a bad strategy. Plus, if you think the burned site is going to be perpetually burned to a crisp (alternative health anyone?) then you could sell links off it or generate other alternative revenue streams not directly reliant on search rankings.

Build a Cushion

If you have cash savings maybe you guy out and buy some websites or domain names from other people who are scared of the volatility or got clipped for issues you think you could easily fix.

When the tide goes out debt leverage limits your optionality. Savings gives you optionality. Having slack in your schedule also gives you optionality.

The person with a lot of experience & savings would love to see highly volatile search markets because those will wash out some of the competition, curtail investments from existing players, and make other potential competitors more hesitant to enter the market.

This year is a rather easy year to be depressed. ;)

COVID-19, fearmongering media, polarized hyper-charged social media, mass unemployment, lockdowns that killed exercise routines and social connections, loss of hope / purpose / meaning, a guy who stuck a gun in the belly area of a pregnant woman overdosing on fentanyl shortly after he passed counterfeit currency, that broader background being utterly ignored so outrage could fuel widespread rioting with a man in dreadlocks kicking a man sitting in the street unconscious & other bonus random drive by shootings where actual heroes are murdered at random, cities being burned down, communist anarchy, social "justice" movements founded on the idiotic idea of improving society by ripping apart the family unit, etc.

This post is not a suicide letter, but an ode to reality of accepting today for what it is. :D

pic.twitter.com/OWBHGa5eKR— Zero Gravity Media (@zerogravityhxp) August 12, 2020

Last year was the first year where I managed an office with a bunch of employees in it. When the office opened my email inbox had under 2,000 emails built up in it over a 16 year period of working on the web. Far from inbox zero, I am now above 20,000. I think in a Bill Gates interview about a half year ago I smiled after hearing his sort of EGT was how his email inbox was doing. I timed that office opening almost perfectly for COVID-19 so I could have all the stress and cost associated with training a team, setting up a ton of computers, creating workflow, ... and then none of the benefits as the office would get shut down shortly after things began to operate smoothly. :D

By the end of last year a was a bit (err...lot) on the fat side from working too much, too much stress, and exercising too little. My weight and the length of my fuse are reciprocals.

In the past I used to harness negative energy into a form of rage to fuel drive, but now that I am over 40 I find it much harder to live that way. I've already had a number of near death experiences (including one when my wife was pregnant with our only child) and think at some point living that rage-drive way is just shitty. Just say no to endless rage.

So when it was obvious this year was largely going to be dog crap, I started to look internally instead of externally & figured it made more sense to improve health & mood than to fight the gravity of the global depression we are currently living through.

Exogenous Shocks

When things change out of nowhere they can end up dramatically changing the social and economic order.

Many such changes are utterly arbitrary and orthogonal to the concepts of fairness, justice, human decency, etc.

Some parties are politically connected & shielded from actual market forces.

As a self-employed person living overseas I am certainly not one of those protected parties. That said, my family and the people who work for me look to me and hope I can help shield them from some of the crap reality served up this year.

As a rule, when exogenous shocks happen those who are not politically connected get screwed hardest.

Smaller firms tend to under-perform larger firms: "As the earnings season draws to a close, companies within the Russell 2000 stock index — the small-cap benchmark — have reported an aggregate loss of $1.1bn, compared to profits of almost $18bn a year earlier, according to data provider FactSet. Meantime, the much bigger companies within the benchmark S&P 500 index have posted a 34 per cent aggregate drop in earnings, to $233bn."

Poorer people are more likely to lose their jobs.

Emerging markets tend to get hit harder than developed markets. Which only adds to the powder keg of instability as the food price inflation tied to falling incomes makes many people rather desperate.

etc.

As people get desperate violence increases & many governments get overthrown.

Central banks printing cash to prop up the financial markets only increases the divide further.

Congratulations @federalreserve pic.twitter.com/8HxhLH9il5— Sven Henrich (@NorthmanTrader) August 17, 2020

That increased income & wealth inequality makes "the system" only feel that much more fraudulent, which in turn acts as a powder keg to fuel more arbitrary misdirected violence.

Tesla now has a $340 billion market capitalization. They remain unprofitable outside of harvesting tax credits.

Beyond fueling increased violence, the sky high numbers for FOMO stocks also lead some people to feel like they are failures for only slightly succeeding or just getting by.

Others pile in to trashy cryptocurrencies in an attempt to catch up where they only further compound their losses.

Waiting Things Out

It is worth noting many of the jobs that are gone are gone for good.

We may very well be facing a global depression:

"The pandemic has created a massive economic contraction that will be followed by a financial crisis in many parts of the globe, as nonperforming corporate loans accumulate alongside bankruptcies. Sovereign defaults in the developing world are also poised to spike. This crisis will follow a path similar to the one the last crisis took, except worse, commensurate with the scale and scope of the collapse in global economic activity. And the crisis will hit lower-income households and countries harder than their wealthier counterparts. ... In all of the worst financial crises since the mid-nineteenth century, it took an average of eight years for per capita GDP to return to the pre-crisis level. (The median was seven years.) ... The last time all engines failed was in the Great Depression; the collapse this time will be similarly abrupt and steep."

If you can't afford to feed your family of course you have to solve that problem first. But if you are not absolutely financially desperate then this can be a good year to win in ways other than finances & only worry about money after other things are in a better place.

This is a good year to find meaning through various types of self-improvement and doing lots of small & kind things for the people around you. Yesterday was a good day to buy your wife flowers. So is today. Tomorrow is a good day to buy a friend a surprise gift.

One of the best books you can read about developing positive personal habits is Charles Duhigg's The Power of Habit. It is 8 years old now but it is still a great read.

Pushing for broad structural changes in a crisis through ideology which removes ordinary feedback loops often ends up creating only further injustice with the campaign "hero" looking like their polar opposite. Ideology pushed hard enough wraps around to the other side.

When things are absolutely screwed the world over it is better to focus on improving yourself and your family rather than promoting arbitrary extrajudicial justice and burning things down further.

Here are the steps I took to improve a good bit so far this year.

Coronavirus Lockdowns

When I saw a video of a guy walking down the street in Wuhan cough blood and fall over dead I immediately ordered facemasks for everyone in my extended family. I also bought facemasks and gloves into the office for workers. As it turns out gloves were largely a non-winner because using them is more likely to spread virus and bacteria, but the intent was good.

Cygnus recommended taking the supplement quercetin & so did Dr. Zev, so I do that.

Our government does not want us to treat covid early. If I get covid and no hcq access-I would take IMMEDIATELY quercetin 500mg three times a day for 7 days and elemental zinc 50mg one a day for 7 days, and z-pack. Every American home should have quercetin and zinc.— Dr. Zev Zelenko (@zev_dr) August 16, 2020

When lockdowns were announced I hoarded months worth of baby formula so I know my daughter would be ok & bought her a couple birthday presents in case the lockdowns were extended repeatedly. They were, so that worked out ok.

When lockdowns ended I bought a ton of different toys for my daughter so I could share them with her and make up for the limited outside contact for the time being. I also brought my lead graphic & web designer a dual monitor computer to his house to improve his efficiency.

Any day where there is not a lockdown I try to make the most of it knowing another couple months or quarter year can disappear arbitrarily.

Making the most out of the day for me often means doing something positive on the health front & meaning front right away. Things like getting food for my daughter or going for a walk are big wins early in the day as we tend to slow down and get tired as the day drags on.

Health / Fitness

Early in the year when I could use the gym I was walking at a brisk pace for about an hour a day while reading books and listening to podcasts.

After gyms were forced to be closed I started walking outside. Initially this was often to get groceries or various baby supplies, though I continued to walk daily even when there wasn't a real direct need just to keep mood up with all the ridiculous crap going on in the world. I used to think the Philippines was way too hot when I had to drive everywhere, but even if it is hot as hell it isn't bad to be out in the sun and heat so long as you are only walking especially if the walk has a purpose which helps your loved ones in some way.

Walking regularly with nothing else going on can be boring as hell, of course, so to offset the boredom I bring my iPhone and have some Airpod Pro earbuds with their killer noise canceling features. When nobody is near me I sometimes pull down my face mask and jog or sprint for a while to add variety to the day. I also sometimes make people's ears bleed by singing along in an effort to share the joy of whatever I am listening to. :D

There are many awesome acoustic songs on YouTube. Revisiting unheard versions of songs you liked a long time ago can make the lyrics more powerful.

Some of the spoken-word song introductions are quite powerful: "everyone wants you to forget you are gonna die, because if they convince you your not gonna die you waste your time doing what they want you to do. Spend money on what they're selling. ... one day I'm gonna die, but before then I'm gonna live, live, live, the way I want to live and I hope you do too."

Whenever I exercise I usually have caffeine as well. I view it a bit like a band aid or kick start, but I try to only use it either explicitly when walking or when intensely focusing on work.

If my back hurts from sitting at the chair too long that is a cue to get up and take a break even if it is a short one to go play with my daughter.

Sometimes I will walk two or three times throughout the day to break up the monotony.

Most my exercise is walking or jogging, but occasionally I will do a few push ups or sit ups.

In a world of gloom it is hard to look in the mirror and see a steaming pile of garbage which is not well maintained and feel good about yourself.

You know what sacrifices you have made and what the costs were, but it is easy to go down the path of resentment if outcomes are subpar and beyond your control in the short term.

If you don't feel alive you aren't. :D

It's a lifeless life, with no fixed address to give
But you're not mine to die for anymore
so I must live

Diet

I try to eat salad, Indian food, quiche, nuts, beef jerky, and all sorts of other foods where carbohydrates are sort of only incidental and are not core to the dish.

Anything that looks/smells/feels/sounds like sugar, rice, potatoes, bread, derivatives thereof, etc. I consider to be poison / systemic inflammation / weight gain and try to skip it.

I also consider drinking calories to be a disaster as the glycemic index on things like a soda are through the roof.

If you are fat and eat a lot of carbs you are repeatedly spiking your blood sugar, then it crashes, then you are hungry again. This habit & addictive cycle works on some of the same neural pathways that hardcore drugs do.

Sometimes I still do eat a bit of peanut butter or chocolate or frozen chocolate dipped in peanut butter, though I try not to use it meal replacement style very often & try not to be "full jar now empty" Aaron. Three tips on that front are to eat peanut butter using a chop stick so you eat it slower, eat small pieces of chocolate, and freeze the chocolate before eating so it takes a while to chew and you realize just how much you are eating. :D

When I wake I often wait at least 4 or 5 hours before eating my first meal. In some cases I stretch that out to 6 or 8.

Communicating

I know a lot of people are in a bad state this year, so I try to offset that at least slightly by overcommunicating.

I send my mom pictures or videos of my daughter every day as she told me those help her sleep better at night and her watch even shows her blood pressure is lower and she feels much more well rested the next morning. I have bought my daughter a ton of extra clothes to wear just so my mom gets a bit more variety in the pictures and my daughter will have a ton of memories to sort through when she is older.

Our daughter has quite a bit of energy so sometimes she makes communicating with my wife hard. Sometimes we have better luck texting back and forth if something is urgent and then discuss it in more detail over email or when our daughter is taking a nap.

A lot of people around me have recently went through hardships beyond the financial uncertainties many are facing.

• Our web designer's mom had a heart attack then got COVID-19 but I think she is ok now.
• Our lead writer had a friend younger than I who after going to the hospital with COVID-19.
• Our lead programmer's parents recently had their house broken into with some of their sentimental jewelry stolen & he is the glue guy for the whole family.
• One of my buddies recently broke up with his long time girlfriend.

I am sure there are a lot more similar stories that I have not been told yet. So as a rule of thumb I sort of consider that if people have historically been good its ok to give them more leeway this year & be extra kind.

Mental Health

One of the cheapest & easiest wins in terms of quality of life is setting your grounding from a perspective of feeling lucky so that you are appreciative & try to be a better version of yourself. Episode 504 of This American Life shares an inspiring story about Emir Kamenica.

"These stories we tell about ourselves, they're almost like our infrastructure, like railroads or highways. We can build them almost any way we want to. But once they're in place, this whole inner landscape grows up around them.

So maybe the point here is that you should be careful about how you tell your story, or at least conscious of it. Because once you've told it, once you've built the highway, it's just very hard to move it. Even if your story is about an angel who came out of nowhere and saved your life, even then, not even the angel herself can change it." - Michael Lewis

I generally am not a fan of taking prescription drugs to solve symptoms of larger underlying problems as in many cases those can cause additional bonus problems. I get that some people need various drugs to get by and survive, though outside of caffeine I typically try not to drink much or do much of anything else that can add more instability or create more bonus issues.

The above said, I think my baseline mood (especially if I am not in great health) tends to be a bit darker than average.

The early web was quite cool and you could do things like email Tim Berners-Lee and get a response, or someone would read your site and see you mentioned Carl Sagan and shoot you an email like this one:

I wrote the first modern book on depression in 1980. It was the first book to present depression as a biochemical disease, rather than a 'mental' illness (whatever that is). And, I was the one who introduced Carl Sagan to television as a local TV personality in L. A., Carl was a good family friend who came to watch a taping of my PBS show, he got really intense when he realized what a medium for communication TV was, and I introduced him to the GM of the station, that's how he got to TV. He was more of a scientist than an actor, I coached him on TV persona. He was a very intense person, and did not have a big ego; he was always open to new information, whether it came from experiences or ideas. He would have loved living now.

To solve both depression and weight gain problems, try an over-the-counter nutrient called 5HTP. The Walmarts here sell the least expensive and best pills. Take about nine a day for about nine days, you will notice you haven't felt the urge to eat all day and you don't have as much depression symptoms; the griffonia seed from which 5HTP is made increases serotonin in the brain.

Then a follow up after I asked about the FDA ban of L-Tryptophan:

Now something gets clearer! When tryotophan was banned because of one supposedly contaminated batch, I used every tiny bit of influence I had as a journalist, talked to every politician I could get in touch with. It was like going up against a brick wall. I wrote articles, did everything, could not understand at all why the nutrient was being banned for one bad batch in Japan and why resistance to overturning the ban was so solid. I even tried to obtain the animal version, and was told it 'wasn't the same,' yet according to a chemical analysis, it was. Now I understand....

My book is "Depression, How to Recognize It, Cure It and Grow From It, Prentice Hall hardback, Simon Schuster paperback.

She also mentioned

Depression research is such big business that I feel they don't want to find a real cure. The way the research should have gone is to study the chemical makeup of depression, then match the medication effect to different brain hormones (as well as cortisol-though it's not a biogenic amine, it's a definite precursor), and find accurate ways of testing which hormone or combination thereof is/are out of balance, so the correct medication can be prescribed right off the bat. So, if it's a seratonin imbalance, the doc gives one medication, if it's monomaine oxadase, the patient gets another, and so on. Prosac is like a huge blanket device, rather than an accurate laser beam going to the exact place it is needed.

Depression research really hasn't progressed that much in the last 20 years, imho.

I know a big part of my improved mood was from taking 5-HTP along with Vitamin B & Vitamin C just before bed. When I take those I can fall asleep a bit quicker, sleep about an hour less, wake up feeling more refreshed, and am less hungry the following morning. If I had to guess, I would say the 5-hydroxytryptophan contributed to my recent 40 pound weight loss more than anything else did.

Anyhow, I would not recommend 5-HTP for anyone who is on SSRIs, MAO inhibitors, or many other drug classes (talk to your doctor first, etc.). But I figured a lot of people feel like crap this year so I should mention it has worked well for me.

Before writing this blog post I also recommended it to a few other people.

Our lead content writer was down after her friend died & I recommended it to her. She said she felt a difference the very next day.

Our backend developer took some after I told him about it and said his personal doom loop he was going through was better within 2 days.

I do not think it is a magic cure-all or would work for everyone, but if you are a bit down combining a bit of 5-HTP with exercise, healthy diet, sleep, etc. can help you improve your worldview and outlook a bit to get through the challenging times we are going through.

My only complaint (glass is always at least half empty :D) would be that as I have discarded that sort of rage cycle I find it easier to be distracted and harder to focus on work. If you love what you do focus comes automatic, but if you don't then you do sometimes have to trick yourself a bit into being productive if you literally could be retired for life. But I suppose most people would say that is an absurd "problem" to complain about.

My only solution to the above is watching MJ on MJ. :D

I’m going to tweet this & pin it to my page so I can watch it every single day

When MJ talks about winning & leadership has a price, he’s talking about sacrificing a part of who you are for all that your team can become.

A Championship Standard!! pic.twitter.com/IbK95jFTVY— Jaycob Ammerman (@Jammer2233) May 13, 2020

Ending on a Positive Note

Destruction leads to a very rough road but it also breeds creation
And earthquakes are to a girl's guitar, they're just another good vibration
And tidal waves couldn't save the world from Californication

If you are reading this blog post you are almost certainly involved in some part of web development, content production, internet marketing and/or e-commerce.

Ultimately as the world is reshaped you will benefit as long as you get through the current period as literally *everything* is moving online.

This chart on e-commerce continues to amaze me. pic.twitter.com/zW4EwKHW1N— David Schawel (@DavidSchawel) August 17, 2020

Given that the big platform monopolies are now getting the PR black eyes they deserve for their locked down ecosystems there is a good chance the web will be a much better place in the next half-decade.

The number of people rushing to become their own bosses is at a record level. Many will fail, but many will innovate and create new markets as they have no choice but to succeed. As more things move online, attention merchant platforms keep breaking culture into smaller and smaller chunks to fuel increasingly distorted views of reality that cater toward confirmation bias and rage.

At some point people will tire of the feed-based never-ending stream and want things they can complete. The growth of Neflix and their streaming competitors reflects the desire for something longer and more in-depth.

Some of legacy print media brands with high cost structures are now recycled selling marked-up garbage in parallel markets.

The combination of these trends will drive an increased appreciation for authenticity & the desire for human connection.

Long ago my original SEO mentor stated:

This is what I think, SEO is all about emotions, all about human interaction. People, search engineers even, try and force it into a numbers box. Numbers, math and formulas are for people not smart enough to think in concepts.

I think the best brands, the best sites have a large portion of their founders personality in them. Never be afraid to be yourself, after all there are 1/2 billion people on the www, not all of them have to agree with you. Concentrate on the ones that share your views, concentrate on making their experience the very best it can be, the rest forget them.

Or to put it another way, the best sites say - this is what we do, this is how we do it, if you don't like it go somewhere else.

Ultimately though I think it comes down to desire and the will to win.

He later sold his business for a life changing sum, so unlike his favorite football club, I guess he had the will to win. The question remains if he will purchase the football club and "fix" them. :D

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