« February 2004 | Main | April 2004 »

March 03, 2004

THE DEATH OF INKTOMI; OR, HOW THE INTERNET BECAME THE YELLOW PAGES

What a difference a day makes! And the difference is all bad news for those of us who like our internet free and open.

Today, I went to add a site to Inktomi, only to find that it is now Overture Site Match. There was no warning that this was coming so soon; in fact, very little warning that it was coming at all. I have an email from February 18th explaining that Yahoo! would be unveiling their new search system, and would continue to list Inktomi sites until April 15 as a courtesy. After that date, Inktomi subscribers would be given the option of signing onto Yahoo!'s new program. It did not say that Inktomi would cease to exist. I was under the impression that Inktomi would continue along, quietly feeding results to smaller search engines. I was mistaken. I also labored under the obviously-too-optimistic hope that Yahoo! would offer free web search results, using their own algorithm. Again, I was mistaken. Yahoo!'s search results, all of them, are now PPC. You pay for the listing, just like people pay for Yellow Pages listings. If you don't pay, you aren't there. The more you pay, the bigger the typeface, or the ad; the more you pay, the higher your ranking.


Here are the facts:

1. Inktomi Search Submit listings have ALL been taken off auto-renew. They will expire, and when they do, you will have to sign up with Site Match. This costs $49 for the first site, plus a $50 deposit, and you are assigned a CPC (the ones I looked at were either $0.30 or $0.15, depending on the category).

2. According to Yahoo!'s website information, "web results" will start drawing from Site Match only, starting April 15, and Site Match works as described above. In other words, Yahoo! is now a pure PPC engine. The days of a free Yahoo! listing are over.


What does this mean?:

It means that Inktomi is dead. Existing listings will be allowed to expire, and this time next year, there will be no Inktomi. Period. It means that Inktomi subscribers have been blindsided, asked to trade a $35 once-a-year subscription for a $100 downpayment plus monthly fees based on a flat-fee CPC. If you think this sounds familiar, it does: Think "LookSmart" this time last year. It is true, and perhaps worth considering, that LookSmart is now a virtual non-entity in the SEO world, with little or no visible presence, and a string of layoffs and lost revenues behind them. They aren't too popular with their former subscribers, either.

It also means that there is no such thing as a free listing on Yahoo! anymore, with the possible exception of submitting to the Directory under non-profit status, and waiting up to 6 months for that listing to be reviewed. With Overture doing sponsored listings and Site Match doing "web results", Yahoo! has just become the realm of big business. Forget about non-profits, forget about private, fun, informative websites. You won't be seeing them on Yahoo! anymore. Can the days of charging for their email accounts be far behind?

It means that many other search engines will no longer offer "free" listings, because many of them draw from Inktomi results, most notably HotBot. Imagine, little HotBot is now a full-fledged PPC. And it's not even owned by Yahoo! At least, not that I know of... but at the rate Yahoo! has been buying up web properties, it might not be long.


Other things to ponder:

What will happen with MSN now? MSN has been using Inktomi results as an interim solution, to tide them over after dumping LookSmart, until their own search is unveiled. That date is still not set, and since the head of that division quietly left his job after only 4 months, I'd say that there's probably some behind-the-scenes turmoil. Will MSN keep using competitor Yahoo!'s paid results, for which they get no profit, or will they switch to something else?

Will this strengthen Google? Will we see a sudden breakout from a previously small and unknown search engine that has no PPC listings? The backlash against the new "paid only" face of Yahoo! might be vicious. Internet purists are already upset over having money creep into so many aspects of the internet. Many already shun the major search engines precisely because they have no desire to see only "paid for" listings, which they regard as paid advertisements rather than websites. Many have already flocked to the smaller engines, willing to tolerate the possibility of spammed listings in exchange for the knowledge that nobody is buying them.

What will happen to Yahoo! Directory results? If nobody is going to see them anyway, why would anyone pay $299 every year, when they are already paying more money than that for the more-visible listing? I foresee the death of the Yahoo! Directory before too long, if this continues.

Many businesses have gone on the web because of the extremely high potential ROI (return on investment). If you drive the prices through the roof, it's no longer a great bargain. Will businesses start pondering the relative ROI of traditional print media and other marketing, and slowly abandon the internet as simply not cost-effective in many cases?

It's not that I am opposed to seeing paid listings. After all, I do SEO. However, I still want to see an internet where money is not calling all the shots. I still want an internet where private sites can be found on search engines, and some sites really can be there simply by virtue of being informative or fun. I still want to see an internet where people will create an informative and fun website with no thought of personal profit.


A personal plea to Yahoo!, MSN, and all other search engines:

Yahoo!: Please rethink your current policy of only listing paid sites. Is this really what you think the internet public wants? Did Google's huge popularity not demonstrate the opposite? At least when your main search results were from your paid directory listings, people could still default to the Google listings at the end to see non-commercial sites. Believe it or not, many people like to see these sites.

MSN: Please don't follow Yahoo!'s example and make your entire search based on PPC listings. Give the public a real, viable alternative to heavily financed commercial listings. At least consider a low-cost once-a-year payment, such as Inktomi used to offer.

Google, HotBot, AltaVista, et al: Stand firm in the face of a trend which will forever alter the face of the internet. If we all wanted to browse the Yellow Pages for information, we wouldn't have flocked to the web in record numbers. Make sure that we still have some alternative, some place where the worthy can get attention simply for being worthy, and not for the size of their wallets.

As an SEO, my job is to get my clients listed. Please don't force me into the position of only being able to help someone with a big advertising budget, while I watch worthy websites fall into search engine Siberia because they just don't have the budget to compete. I would greatly miss working with some of my quirkier clients, but they'd burn through their annual budget in a month at these prices. As an internet surfer, I beg of you not to give me only slick and superficial commercial ads, always with a hidden agenda of selling you something, instead of worthy and informative websites.

March 02, 2004

Search Engine FAQ's

So many changes are going on in the search engine world today that it seemed appropriate to do a "fast facts" post that touched on a lot of current concerns, rather than focusing on one specific topic among the many. The industry newsletters and forums have been buzzing lately about changes that are sure to shake things up for a long time to come!

1. What's next for Yahoo?: Yahoo! remains silent on the exact nature of the new paid inclusion program that it will offer beginning April 15, at which time it will stop giving "free" listings to Inktomi subscribers. WebProWorld did an interview with Yahoo!'s Tim Mayer at the recent Webmasterworld PubConference in Orlando. Tim declined to comment on new advertising programs to be unveiled (no surprise there) but continued to stress that SEO's should focus on serving the end user -- and added that any program Yahoo! chooses to use will be very very picky, and anything with the slightest whiff of spam will be targeted for exclusion.

2. What's next for Google?: Google has trumpeted loudly that they have added one billion listings to their database. Is this good? Is this bad? What does this truly mean, in practical terms? Well, practically speaking, it means that there is much more data for the web surfer to find. It also means there are many more sites competing for listings, at least theoretically. Before anyone panics, however, it could be noted that if those one billion sites were worthy, they probably would have been in the directory already. More listings does not necessarily translate to better listings.

3. What's next for PPC?: Theories abound, and many are of the "conspiracy theory" variety. Google owns Google AdWords, Yahoo! owns Overture, and between them they own a substantial chunk of the Pay Per Click market. Will listing in AdWords help your Google ranking? Google has steadfastly denied that there is any relation between their AdWords listings and their normal spider listings, and many webmasters have steadfastly maintained that Google is lying. Then there's the question of Overture, which supplies paid listings to, among others, MSN. Will MSN continue to use sponsor listings from a competitor (Yahoo!)? Will Yahoo!'s new "paid inclusion" be some new form of Overture? Many questions, many rumors, and no actual information on any of the above.

4. What's this about "personalized search"?: Quite possibly the face of things to come, "personalized search" exists in limited places on the web already. Based on user data and input, the search engine selectively edits the search results for you, in effect filtering to your personal preferences. Such searches will probably be tied closely to toolbars like Google's, which can collect data on your search habits as well as demographic information. Expect to see this receiving ever more attention in the industry news, as a way to help web surfers get what they truly need out of the staggering number of search results currently being presented to them.

5. Will Google really have an IPO?: Google remains coyly silent. However, all indications are that they will indeed go public, perhaps as soon as next month. Nobody will be surprised when it happens; the only surprise would come if they chose not to.

6. What is the connection between Yahoo! dumping Google, and Google's IPO?: Ah, a great well of speculation! First of all, remember that Google has yet to confirm they will do an IPO. However, if they do, what motive could Yahoo! have in the timing of their split from the Google search results? One camp believes that Yahoo! was foolish to dump Google's results, thus lessening the worth of an IPO, and hence, diminishing the return they will get from their 5% ownership. Another camp believed that Yahoo!, unconcerned about the profit margin, timed it precisely with the intention of sabotaging the IPO and lowering the stock value. Yahoo! insists they care only about giving quality search results to their visitors, and Google won't even admit to an IPO. Your guess is probably as good as anyone else's on this one!

7. Is Google going to start offering free email accounts, like MSN and Yahoo! do?: They have neither confirmed nor denied the report. It would make sense for them if they have the technology and can afford it; one way that their major competitors (MSN and Yahoo!) have retained customer loyalty is through free email boxes.


Pick your favorite topic and comment on it! And by all means, if anyone at Yahoo!, Google, or MSN would like to have some input, we'd all be more than happy to hear it!

Search the SNS blog:


October 2004

Sun Mon Tue Wed Thu Fri Sat
          1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31