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Your Weekly Step Forth into the World of Search Engines
Wednesday - February 15th 2006
Highlight of the Week
Lycos Looking Forward >>
The Major Players
Are Google SERPs Entirely Organic? >>
Advertisers Continue to Adopt Online Marketing Strategies>>
  Net Reality
US Congress Expresses Disgust >>
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Highlight of the Week

Lycos Looking Forward

Lycos Looking Forward
an Interview with COO Brian Kalinowski

It's been a long time since we've heard from Lycos. Long lost amidst the choppy seas of corporate change, Lycos was once one of the ruling elite. Today, Lycos appears to be a number of fragmented shells of its former self. That might be changing soon though.

Last week, word of a restructuring phase at Lycos spread around the web based on a post on John Battelle's blog and an article written by me. As it turns out, the information was correct but our assumptions were wrong. Lycos is not getting out of search, exactly, it is simply changing the way it approaches the search engine marketplace as consumer use of search engines evolves.

In an interview with StepForth Tuesday morning, Lycos Chief Operating Officer, Brian Kalinowski noted Lycos was going to be releasing a series of products marketed to producers and distributors of web content over the next six months.

The firm's focus is shifting towards ... consumer created and specialty niche content". This means Lycos plans to support independent creators and publishers by building products, services and platforms that allow them to make professional content and distribute it through social-based search applications.

"Search is an absolute, necessary vehicle," said Kalinowski, "Web2.0 search is the primary vehicle for navigation and discovery. Lycos is not the general purpose [search] destination of choice but it will always offer competitive commercial search and specialty search for niche content."

Currently, the Lycos search network is fragmented with the "international version" of Lycos (the .com address) displaying results culled from the Ask Jeeves database. Regional versions of Lycos tend to draw results from the Google database. Both search engines databases are available through HotBot , (another of the original search tools but now owned by Lycos).

"Territorial relationships are managed by separate groups", said Kalinowski, noting how Lycos.ca chose Google for organic results while Lycos.com has been showing results from Ask Jeeves since March 2005. Over the coming months however, Kalinowski says Lycos will "...dramatically be changing its overall search experience in the next three months", with a dramatic relaunch sometime in the next two.

Lycos is much larger than most people think. As it was one of the original search engines, it has been a part of the scene for a very long time. It has been involved with innumerable deals over the past decade, many of which helped shape the Internet as we perceive it today. In some of those deals, Lycos itself was a hot-commodity and in others, it appeared to be an asset too big to lose but too ungainly to hold on to. Along the way, the company picked up products as varied as, Wired Magazine, Quote.com ( sold to IDC on Feb 1st.), Tripod, Anglefire, HotBot, Gamesville, Raging Bull, and Wired's WebMonkey.

Over the past year, Lycos has consolidated a lot of products. "We had 42 unique products in May but have boiled them down to 16 - 20," said Kalinowski. "Our primary focus is rolling them into 7 or 8 key properties. "He went on to identify key areas as; news, entertainment, games, content, email, blogging, photo albums and multi-media / social networking products.

A glance at the Lycos Network Help page shows they already have many of the technologies in place. Anglefire and Tripod are services geared to helping beginning bloggers or website builders create web-ready properties ready to accept fresh content. Much of that content can be stored, shared and gathered using Planet, a youth-focused social network platform introduced by Lycos. New webmasters can register domains through Lycos and receive HTML tutorials, manuals and gadgets through the WebMonkey and HTMLGear services. Wired Magazine is considered to be among the most credible sources of Internet and technology news.

That collection of assets gives the management structure at Lycos a wide resource base to work with as it reinvents and reasserts itself in relation to its much larger competitors, Yahoo, Google and MSN.

For Lycos, reinvention is, "... the opportunity to go from a large public to a small private company." While admitting Lycos is, "...never going to beat Google," at pure search, Kalinowski says Lycos will focus on areas, "where we can make a big dent."

The area Kalinowski identified as Lycos' primary target is niche content created by independent producers. Lycos wants to become a, "... destination for not only consumers but for producers and creators where they can market and promote the goods they create." He noted there are several independent producers of films, music, video games, and written products.

As an example, it plans to create and promote a virtual record label associated with the Lycos brand along with becoming a virtual publishing house for games, films and text creations. "Anybody has the ability to self promote, produce and market their own goods," says Kalinowski. The system will enable end users to drop-ship product and can accept payments via Visa, MasterCard or Paypal.

"In the typical publishing industry, take music, 100 bands will be marketed from the 1000 bands that are signed and produce an album without promotion. We are trying to focus on that segment of content not large enough to make it without the support of the 5 or 6 big-boys [who dominate the various publishing sectors]."

Lycos sees a great deal of potential serving long-tail searches in order to aggregate content that appeals to small markets that control niches in the larger marketplace. The idea is that fresh content will draw viewers, "... creating a larger audience of varied, eclectic tastes." Lycos plans to be a big player in a lot of smaller markets.

"We see and use search as a discovery engine,"Kalinowski said. "It will evolve in a few years to personalized content based on user interests and desires. Google needs to stay on the cutting edge of general search, sort of a one-trick-pony. We see many niches so if one falls off..."

If anything, Lycos is a survivor. When asked how search engine marketers should think about Lycos, Kalinowski replied, "As the sleeping giant. We will never come back and be the $100 billion company. We're aiming at capturing a lot of smaller niche markets, satisfying needs that Yahoo and Google can't because that requires focus outside of their capabilities."Lycos intends to, "... take a significant position for indy content creators and content outside the realm of mainstream publishers. This is a very dedicated commitment for us."

As the search sphere segments, it will be interesting to watch Lycos' continued evolution.

 

by Jim Hedger, News Editor
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Major Player Update

Are Google SERPs Entirely Organic?

Google has made another alteration the Google Help Center , this time removing the assurance that Google's results are completely automated. The change was first noted by Phillip Lenssen in his Google Blogoscope .

As recently as February 2, the document outlining Google's Principles stated, " The order and contents of Google search results are completely automated. No one hand picks a particular result for a given search query, nor does Google ever insert jokes or send messages by changing the order of results. Occasionally, when a particular website is the subject of public attention, other sites begin linking to it. This may elevate its importance as gauged by our ranking software, which assigns a PageRank value based in part on who links to a given page. Higher ranking in Google results may lead to more awareness, which may lead to more links and so on."

Today, the same page opens with the headline, " Does Google ever insert jokes or send messages by changing the order of its results? "concluding, "... No. Occasionally, when a particular website is the subject of public attention, other sites begin linking to it. This may elevate its importance as gauged by our ranking software, which assigns a PageRank value based in part on who links to a given page. Higher ranking in Google results may lead to more awareness, which may lead to more links, and so on."

The Google Principles navigation page was altered as well, changing linked text worded, "Does Google ever manipulate its search results" to read, "Does Google ever insert jokes or send messages by changing the order of results?"

Uh, huh... Is Google playing a joke on its critics or is the change a post Valentine's Day love letter to their new friends at AOL, and in Beijing , or are they making subtle comment on the two-minute cloaking penalty assigned to BMW last week.

It is very possible that the deal made with AOL in late December and its continuing collaboration with the Chinese Government in regards to censoring Google.Cn, has prompted a universal realignment of the company's stated values. If that is true, they haven't " jumped the shark " they have been consumed by it. (You are what you're eaten by?)

It is also possible that the alteration is a reference to the delisting and rapid reinsertion of the German language version of the BMW website last week. Google confirmed BMW had been removed for using a technique known as java-script cloaking, a spam-offence generally punishable by 30-days in the penalty box. After BMW.de complied with Google's demand they remove the spam, their listing was re-included in the index. All obviously done by hand. If this scenario is true, Google might just be clumsy enough to fall into the shark's mouth, get chewed a bit and spit out as unappealing.

Whatever motivated Google to remove the assurance of automated organic results, the alteration, we are no longer able to tell clients Google's results are guaranteed by Google to be 100% organic. That is a very bad thing for Google today.

Yahoo and smaller rival Lycos have both publicly conceded the general, organic search space to Google but recently, it has taken a number of major hits to its reputation, some well earned, others slightly misplaced. It continues to dominate the search engine spectrum but is now the in the center of the ongoing discussions about human rights and freedom of information.

Google's greatest asset is the faith its users place in it. With billions of dollars in the bank and a number of the world's greatest minds working under its roof, we cannot understand why Google would break with the very core-principle that made it unique.

Advertisers Continue to Adopt Online Marketing Strategies

An annual survey conducted by IT Analytics firm Outsell Inc. concludes that just over 80% of advertisers are using some form of Internet Marketing with a definite emphasis on search marketing.

With an increase in ad-spending of about 19% seen in the online advertising sector, the 80% figure is projected to grow to about 90% over the next two years. According to the survey, " Annual Ad Spending Study: Where and Why Advertisers are Moving Online ", spending on Internet advertising is growing at a rate of eight times that of TV and Radio spending which is growing at only 2.4% and six times faster than print budgets which are growing by about 3.3%.

Separating the 1200 respondents in to groups preferring Google, Yahoo, or MSN, the survey found that Google is viewed as the most effective though it has costs that can run 20% lower than those of Yahoo and MSN.

This finding was addressed by Outsell VP Chuck Richard in an interview with ClickZ magazine on Monday. "I think smaller firms have less bandwidth to try out multiple search engines, Google has a lower minimum bid price for keywords than Yahoo! and MSN."

Richard sees this time as a period of rapid growth in emerging areas for Internet advertising. Ad-spending on blogs, for instance, sits at about 2% of average advertising budgets but is expected to grow by over 43% in the coming two years.

"Advertisers indicate they will increase their spending," said Richard in the ClickZ interview, "They're not taking a wait-and-see approach."

by Jim Hedger, News Editor
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The Net Reality

US Congress Expresses Disgust with US Tech Firms Relations with China

"I do not understand how your corporate leadership sleeps at night," said California Democratic Representative Tom Lantos, addressing executives of the major search engines earlier today.

Lantos sits on a joint House/Senate committee examining the dealings US tech firms have with the Government of China. New Jersey Republican Representative, Christopher H. Smith, who labelled the relationships between Google, Cisco, Yahoo and Microsoft and the Chinese Government as "sickening collaborations", echoed Lantos' comments, railing on the firms for "decapitating the voice of dissents" there.

Smith's comments opened a series of hearings that are being watched by many concerned about Internet censorship and human rights in China. In order to do business in China, tech firms are expected to conform to Chinese laws, many of which repress freedom of speech and information.

Smith, who chairs the committee said he intends to introduce a bill, labelled the "Global Online Freedom Act", that would make many of the actions the tech firms have taken to comply with Chinese law, illegal for US companies. According to the New York Times , the act would, "...establish standards for Internet companies operating abroad. In addition to prohibiting companies from filtering out certain political or religious terms, it would require them to disclose to users any sort of filtering they undertake."

On Tuesday, the US State Department announced the formation of the Global Internet Freedom Task Force, responsible for reviewing efforts by non-US governments, "to restrict access to political content and the impact of such censorship efforts on U.S. companies."

Of all the firms questioned by the committee today, Google and Yahoo have received the greatest attention in the tech community and the mainstream media. In response to the committee, Google's VP of Global Communications and Public Affairs presented eight pages of testimony, a copy of which can be found here .

by Jim Hedger, News Editor
 
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