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Wednesday, April 20th 2005

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Highlights of the Week: Dealing with Times of Great Change

Dealing with Times of Great Change - Jim Hedger"What's the use of a good quotation (algorithm) if you can't change it?" Dr. Who (The Fortune Program)

Search engine optimization firms tend to have unique relationships with their clients. Like our colligate cousins in the web design field, our clients often see our services as one-time events. Once the initial SEO campaign is completed and websites have achieved Top10 placements, some clients are content to go about their business assuming their placements are going to stay in place. In many cases, they do. A website that has been optimized by a good SEO can prove difficult to dislodge, even when these placements are targeted by other SEOs.

Strong placements can stay in place for months but change is an inevitable constant, natural in both the real world and in the virtually real world we work in. There have been a lot of changes in the search environment recently. From the introduction of new ideas about search-engine functionality (vertical vs. general search) to the increasing sophistication of Google's link-evaluation algorithms, to the unveiling of parts of Become.Com's AIR algorithm, the changes predicted in previous months are quickly defining what will be a constantly shifting "new normal" for search marketers.

The emergence of a "new normal" in the search marketing industry presents as many problems for search marketing companies as it does opportunities. Search marketing is still a highly disorganized industrial sector that has only risen to prominence in the past three years. Even though countless articles have been written about the sector and huge ad-firms such as Avenue A have entered the picture, there still remains a great deal of misunderstanding about the cause and effect nature of the work. It is not only difficult to track outcomes past the actual placements; it is also difficult to quantify how general changes in the search sector might affect each individual client.

In times of change, one of the biggest problems for established SEO firms is in sustaining good relationships with previous and current clients. These problems can be easily characterized by two categories. Regardless of the category these issues might fall into, each represents real people whose incomes are partially dependent on the outcome of the campaign.

The first category consists of issues presented by past clients whose rankings have dropped over time or because of a variety of on-site issues. While most SEO firms offer some form of long-term maintenance options, clients often see these options as unnecessary expenses, especially when placements are sticky over long periods of time. In our practice, about half the clients choose a post placement maintenance contract. The other half is willing to take their chances over time, a decision that in some cases might be cost-effective but could also present major expenses for others. In previous years, if a site with great placement continued to enjoy that ranking over twelve or more months without a lot of intervention, a maintenance contract would likely be an unnecessary expense. On the other hand, if one or more competitors also hired professional search optimizers, the cost of maintenance might be considered a necessary cost of retaining prominent placements in the organic SERPs.

That was the general gist of advice we offered our clients when they considered their options towards the end of a successful placement campaign. That advice works well when all factors that might affect rankings remain static or equal. We don't want to dissuade any client from signing up for long-term maintenance; after all we are in business. We do however wish to provide them with an honest view of what might or might not happen in the future. Under the "old-norm" where Google was the absolute dominant search tool and things were a bit more stable, the advice was sound. Today, search is more serious and the structure of the "new-norm" for organic search is quite different. In other words, what was good advice yesterday might not be wise today.

For past clients whose relationships have lapsed over time, there are often high costs associated with reoptimizing their websites. Costs in the SEO sector have increased over the past few years as the environment has become more complicated. Clients returning to SEO or SEM shops should be prepared to pay fees higher than those charged two or three years ago. Then again, maybe the site simply requires a quick once-over and fees can be limited in light of a previously successful relationship. Every situation is different and this is a topic in which generalization is very difficult.

The second category pertains to current clients whose sites were optimized for what would be considered the "old-norm" or need to be re-optimized to meet the criteria of the new and unique vertical search tools. As a contractual arrangement exists between SEO and client where a rhythm to the working relationship has already been established these circumstances are a bit more precarious.

Here is an unlikely scenario that could realistically play out. (Please note: I am just making this up. This scenario does not pertain to any current or past client.) Client X has a website optimized in January. The site springs to the Top10 of the rankings on all four major search engines and is relatively settled in place within eight weeks. The contract between the SEO firm and Client X was scheduled to last twelve weeks. On the Friday of Week6, the largest of the search engines implements a new algorithm that radically alters they values it applies to incoming links and on-site elements but the effects of that change don't actually manifest on the results pages for another two weeks. On the Monday of Week8, the client sees that his or her site is ranked exactly where it should be but as the week progresses the site starts to drop.

Who is responsible and what should be done about it?

Many SEO firms faced a similar situation in previous years. Those in the business in November 2003 might remember weeks of sheer panic. Given the propensity of many in the sector to play fast and loose with linking strategies over the past year, many more might soon face another dilemma; a very complex scenario for both SEO and client as neither is remotely responsible for Google deciding to update its algorithm. The common way of looking at such situations is to assume the SEO conformed to what would be considered the best practices of the time the work was performed. In our world, an algorithm shift is sort of like an Act of God is to the insurance companies.

Here is another scenario that every SEO firm faces right now. A new type of search engine appears on the scene and slowly gains popularity. It uses a unique ranking formula that is based on the use of spiders but differs from more common algorithms in many ways. While in previous months it was relatively easy to balance the needs of Google, Yahoo, MSN and Ask Jeeves in a full-site optimization campaign, the addition of a new search tool complicates your optimization plan. You have several clients at various stages of their campaigns and do not have the time or resources to upgrade each and every client to meet a new set of standards introduced midway through their contracts. At the same time however, ethical SEOs have an obligation to immediately inform their clients of major changes in the search landscape that would affect their campaigns. What to do?

First of all, absolutely nothing should ever be done to a client's site unless the SEO has a full understanding of the new criteria. The new search tool is Become.Com and their new algorithm is known as Affinity Indexing Ranking (AIR). SEO practitioners are urged to learn as much as possible about AIR in the coming months. Next, as each placement campaign develops, most SEOs tinker here and there with it during the period of the client contract. StepForth's head SEO, Scott Van Achte often adds new snippets such as zip codes for local search and even longitude and latitude coordinates for GPS search tools as part of his ongoing service to clients. By adding new snippets of geographic content to sites during the campaign, he can regularly update the site with highly useful information in addition the more general updates. During the contractual period, it is possible to lightly add new optimization elements to a site as part of regular optimization updates.

There are some cases in which algorithm updates necessitate a full reoptimization of a website or retooling of a large section of current optimization plans. For the SEO, this is a nightmare scenario in which they must explain to their clients exactly what has happened and that there is nothing anyone can do about it except roll up their sleeves and get to work as quickly as possible. Most SEO contracts have a section recognizing that the SEO is not responsible for costs associated with a major algorithm shift. Telling your client that they will have to pay for reoptimization, no matter what the contract says, is never an easy task. The test for this necessity is fairly straightforward but the SEO had better be very certain before talking to the client. First, an algo shift must be demonstrated to have taken place and acknowledgement of that shift within the SEO/SEM community is essential. Next, the SEO has to be able to show that the shift will affect the client. Lastly, the SEO must have a coherent plan to reestablish rankings before calling the client.

Ultimately, the relationships between the SEO/SEM community and their clients can be characterized as healthy, unique and evolving. Both sides of the relationship should realize that the next few months are likely to be highly volatile times. The search engines are changing friends. There is nothing the SEO/SEM community can do about these changes except to study, experiment and learn as quickly as humans with electronic assistants can. Again it is important to note that this article is not intended to frighten clients into calling their SEO or to lecture SEOs on their obligations to their clients. It is meant to convey the idea that the environment and the markets it supports are changing and many of those changes are happening right now.

"Obstacles cannot crush me. Every obstacle yields to stern resolve. He who is fixed to a star does not change his mind." Leonardo DaVinci , Notebooks (c. 1500)

by Jim Hedger, News Editor
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Major Player Updates: Yahoo and Google Updates

Yahoo's Good First QuarterYahoo's Good First Quarter

Yahoo beats the street - Q1 Results Better than Anticipated

Yahoo reported better than expected revenues in a first quarter report issued early yesterday. Yahoo's earnings from January 1 to March 31 were $205 million, up from the $101 million they reported last year. Excluding money shared with search partners such as MSN, revenues were up almost 50% to $821 million.

Wall Street analysts had expected revenues around $797 million. When monies paid to search partners are included in Yahoo's quarterly revenues, the number rises to $1.17 billion.

Yahoo has several revenue streams resulting from years of content development and numerous advertising programs. Paid-search in the form of contextually delivered ads makes up the greatest part of their income, responsible for about 45% of annual revenues.

Yahoo showed growth against every standard used to rate it. Domestic revenues in the US increased by 37% to $819 million from the $599 million reported last year. International revenues increased a dramatic 124% to $355 million from $159 million in early 2004. Yahoo Japan also posted record revenues last quarter, showing a 34% increase in revenues over the same period last year.

GoogleGoogle "My Search History" Personalization

Google Personalized Search Results

Google Labs has released the beta version of what might become the application that changes Google's relationship with its users forever. My Search History (beta) is an opt-in program that records your Google search history and where the search results led you, making that history available for personal viewing on any computer. Users who sign up for the service will learn a lot about how they use Google. In turn, Google will learn a lot about every user as well.

My Search History will record everything a searcher does while using Google. Users will note the amount of time they spend on Google, where they went, the amount of time they spend on each document found through Google, the last time they visited a web document, and where they went after visiting a web document.

Over time, this information will start to affect and personalize the search results Google displays for individual users. If a specific user tends to access one or two documents each time they do a search for "Blue Widgets" Google will indicate to the user that, historically, they have found those two documents more relevant than others.

This is the first major stab at visible personalization for any of the major search engines. Google users who have already established a Google Account, (Gmail, Google Groups, Google Alerts or Froogle), can sign in immediately. Those who haven't can easily establish an account.

For what it's worth, if you are a Google user with a pre-existing account, signing up for My Search History is not going to give Google any more information about you than they already collect. It will however change your relationship with the results Google produces for you.

by Jim Hedger, News Editor
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StepForth Client Spotlight: Catalyst LLC

Catalyst LLC Founded by Hugh Hilton and Mark Velarde, former Managing Directors of a top tier turnaround firm, the Catalyst team have experience in 23 troubled company situations across 9 different industries. In 10 of those situations, Catalyst executives filled the positions of CEO, COO and/or CFO, overseeing $2.5 billion in transactions. Their restructuring services include: Turnaround Management of troubled or over-leveraged companies, Restructuring Advisory for debtors and creditors and related services, including M&A, due diligence & real estate.

The Net Reality: I-am-8-bit Art Exhibit

Did you know that Pac Man is 25 years old this month? A quarter century after revolutionizing the art of wasting time, Pac Man and other characters of his vintage have themselves become art.

An exhibit at Los Angeles's Gallery 1988 features the 8-bit graphics from games of the late 1970's and early 1980's.

"That era represents such a mysterious and innocent time for technology," said Jensen Karp, co-owner of Gallery 1988, in an interview with Wired Magazine. "Kids like me saw Intellivision and NES as pure miracles. We thought that was as good as it was going to get, and we were pretty happy with that. We're doing the show to bring back that naïve innocence."

Some of the images from the collection however are more jaded than innocent. Artist Tim Tomkinson did my personal favourite . It shows gonzo journalist Hunter S. Thompson posed in front of the ancient Nintendo game Duck Hunter. Another by artist Luke Chuen shows a Dig-Dug bad-guy one click away from explosion. Perhaps the saddest, Pac-Man in Hospice by Greg Simkins, shows our old friend Pac Man in a hospital bed being fed pellets through an IV bottle.

by Jim Hedger, News Editor


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