Skype Goes Free. What’s Next? Everything

You’ve probably heard by now that eBay unloaded Skype today to a consortium led by Silver Lake Partners and a bunch of other people including Marc Andreesen for mumblety-billion dollars.
Dan Hoffman, CEO of hosted VoIP provider M5 Networks, very intelligently points out that Silver Lake is also invested in Avaya (telecom equipment), and IPC (trading systems). Think those could be strategic partners for Skype? Me too.
I’d add to that roster NXP (chips for set-top boxes and mobile phones), Avago (chips for wired infrastructure and computer peripherals), NetScout network management, and Sabre Holdings (Travelocity). I can think of one or two pieces of synergy there, too.
I suspect Silver Lake’s board meetings are going to be very interesting places for the next five years.

Porcine Aviation! Now Software Ships!

In April 2007, I bought an upgrade to the formidable contact manager Now Up-to-Date and Contact. I’d used it off and on for some years and was looking for something a bit more powerful than Apple’s Address Book and iCal. It had gotten old, and wasn’t really happy with OS X. What Now was promising with “Nighthawk” sounded interesting enough for me to pony up $40 for an upgrade sight unseen. Besides, the software was supposed to ship that June. Two months wasn’t so long to wait.
I’m certain that I forgot to ask “June of what year?”

Continue Reading

Google and Bing as a threat to content

Bing has now been around long enough for people to start looking for referrers in their server logs. Most people aren’t seeing a ton of traffic from Bing so they think it’s not a big deal.
It’s a dangerous and possibly self-deluding conclusion for any content provider. Remember: you — the content provider — are not the search engines’ market. You are, in fact, the product that they’re selling.
Bing is not innovating in search, as far as anyone can tell. It gives some very different results than Google; in many cases, it presents much deeper results than Google’s while missing other stuff.
Where Bing (and Yahoo) are innovating are in user experience. The goal of all these search engines is to give their users as much information as possible without their leaving the SERP. You want them to click on your URL to see your content and ads. But the search engines would just as soon that their page be the final word. That’s why Google is relying less on Description tags and more on page scrapes and microformats for its snippets. It’s why Bing has page excerpts pop up next to the URLs on the SERPs.
Bing has looked at the heat maps of what people look at in SERPs and is innovating around that upper left quadrant of the window. Google is making more options more easily available to searchers. But what kind of business model would your site have if it only existed to send people away? Right: none. The search engines are ever more in the business of helping people stick around, showing your information on their pages, and building environments where they let people leave only if they really want to — but would rather have them stick around, thanks.

Is Google shrinking?

There’s a remarkably clueless post on ZDNet today, wherein someone who should know better says that Google’s index is 25 percent smaller than it used to be. His evidence: when he checks his own name, he found only 102,000 instances, down from 135,000 in March. (Bing.com, he says, has 157,000 results.)
The technological Onanism of this aside, it’s just a dumb observation. The idea of a search engine isn’t to provide the most results. It’s to provide the most relevant results. Maybe those “missing” 33,000 results weren’t especially interesting; it’s hard to imagine that 100,000 results on anything, let alone a blogger, would be worth investigating. (And I mean, really — who keeps track of the number of results for their own name?)
Does this have anything to do with Google’s “Caffeine” update (about which I’ll write more shortly)? Possibly, but unlikely; Caffeine seems to be about speed and resources, not index size.

Optimizing press releases

I was quoted yesterday in a BNet article about using press releases to boost backlink profiles. It’s a good article with lots of useful information. Inevitably, as part of the process, lots of better stuff from the underlying e-mail interview got cut. Here’s a fuller version of what I told the writer, the estimable Drew Kerr. (Questions are paraphrased; answers are verbatim.)
Q: What does it mean for a press release to be “search engine ready”?
Search engines put a premium on relevance, so the press release services work (to varying degrees) to make the release as relevant to the release’s subject as possible. That means using the targeted keyword repeatedly, and linking to the site being promoted with keyword-y anchor text.
It sounds simple. It isn’t. First of all, press releases are usually written with more care than United Nations resolutions. They’re the result of endless rounds of writing, re-writing, negotiating and re-negotiatiating — and it’s worse if there’s more than one company involved. By the time a press release gets to a distribution service, the competing interests have been balanced like a Wallenda. The distribution service isn’t going to have any leeway to change words just for SEO purposes. The best they can do is stick a bunch of links onto the most promising text.
That’s a shame, because most releases have been so acutely lawyered that they don’t use words that most constituencies would want to search for. Press releases, of course, have multiple constituencies — the media, the public, investors, competitors, government agencies, suppliers, consumers, the closely interested, the casually interested, and now search engines. They frequently will use different terminology to discuss the same thing; that’s poison for SEO, which is most effective when the copy uses language that people are actually searching for.
For all of those issues, distribution services are a fine way for a site to to gain authority by building backlinks. Unless it is hopelessly ham-handed, a release about the latest frammistat from XYZ Corp. will inevitably use the words “frammistat” and “XYZ Corp.” repeatedly enough to appear relevant for those terms in search engines. By including a few links back to the XYZ Corp. Web site — particularly using the word “frammistat” as the anchor text (and, even better, linking to the frammistat landing page on XYZCorp.com) — the release distribution service has cast a “vote” for the XYZ site. The more votes for a site on any given search term, the more relevant the search engines see that site as being, and position on search results pages go up.
But wait — it gets better. Many web sites republish press releases put out by the distribution services. So if publication sites that search engines regard highly take the bait — sites like Forbes.com, CNNMoney.com, whatever — now *they* are linking to the XYZ Corp. Web page. The technical SEO term for this is “jackpot.”
Q: How do people go wrong making documents SEO-ready?
Over-optimizing. It’s true that repetition is your friend when you’re writing copy that you want to be especially SEO friendly. But even though repetition is your friend, it’s possible to overdo it. Repetition is your friend, but keep in mind that search engines understand that the Web is for people and not machines, and if you insist too hard that repetition is your friend you will write copy that no one will read — and although repetition is your friend, search engines will understand that they are being pandered to. And repetition will no longer be your friend. Neither will anyone else.
Q: Does this work?
As noted earlier, it’s very effective and it’s an excellent way to start building a good backlink profile. But like anything that works, it’s possible to overdo it to the point that search engine algorithms catch on and start devaluing those links. If the only sites that are linking back to you are news distribution sites, you need to rethink the way you’re addressing the public. For one thing, if your only backlinks are from distribution services, it’s a good indication that no one cares about the news you’re putting out and search engines will understand that. At their core, press releases are a not-especially-pernicious form of paid links, which search engines — Google in particular — rail against. Like anything that can give a sugary rush, press releases should be a delicious part of a well-balanced SEO breakfast — not the whole thing.
Q: Why are backlinks important to search?
Backlinks are important because Google sees them as votes of relevance. If one page has 1,000 backlinks from relevant pages and another page has 10,000 backlinks from relevant pages, Google sees the second page as being more relevant for a particular search term — and will place it higher on the SERP (search engine result page) for that search.
Counting backlinks and judging their relevance is what Google’s revolutionary PageRank algorithm is all about. But it’s important to remember that PageRank is only one of 200 or 250 “signals” that Google uses to rank pages.
And it’s also important to remember that only Google has ever said anything about how it ranks pages. Yahoo and Microsoft have never said how they build their SERPs. It may be some PageRank knockoff, or time-based randomization, or chicken entrails, or 5 million hamsters running on 5 million hamster wheels with roulette numbers randomly attached to them.
To searchers and readers, all that matters is that they get highly relevant results quickly. If Microsoft ever decides to reveal anything about how they rank the Web, you could expect SEOs to start optimizing more for Bing, which will increase the utility of Bing’s index, which will draw more users, which will increase the advertising value of Bing’s index.

What’s new about Bing?

Not long ago, I gave an interview to Betanews, which (who?) wanted to know what Microsoft’s new Bing search engine was up to.
A white paper from Microsoft didn’t provide much detail about Bing’s algorithm, but was forthcoming about why and how its user interface got that way. Interesting stuff.
But what’s even more important is that Bing (like Google) is presenting ever more of a web site’s content before users go to a web site. If you’re a site owner who tries to monetize eyeballs, you should start getting the message that you’re less and less in control of the presentation of your information. That’s not a good thing.

Dan on SEO

Rob Kelly, as best as we can put it together, is a guy I didn’t quite get to work with CMP. He was a senior adviser to the SEO out on the West Coast while I was editing NetGuide in New York. Now, he’s off building building a bunch of interesting sounding new companies.
Rob interviewed me the other day about SEO, and it came out pretty well, although I was talking a little faster than he could type. Click through for the whole deal, but here are a couple of pullquotes:

Ranking in the SERP (Search Results Page) is meaningless. Anyone can get to the first page for something. What I always watch for is traffic, and changes in traffic. I care about the conversion of what happens once someone hits my page…clicking the buy button or the ad. I can rank #1 on a search of “cellphone”…but if they come to my page and don’t convert, all I’ve done is cost my company money. If I can generate meaningful traffic to my reader, to my customer…that’s the win.

SEO isn’t an event, it’s a process… Too often, employers aren’t emotionally equipped to understand what SEO really is — it’s a quality process… that involves the entire company. When Toyota decided they were going to out-quality Detroit, they didn’t hire a quality guy and stick him in a cube. They hired someone who would come in and look at the operations of the entire company and build a process that baked quality in. And the best companies that do SEO, bake SEO in.

SEO is where marketers should start

If you want to sell something, tweaking your organic search is a great place to start. That’s the conclusion of a new study (PDF) published by Forbes.
The study found that:

  • The tools seen as most effective for generating conversions were SEO (48 percent) email and e-newsletter marketing (46 percent), and pay-per-click/search marketing (32 percent).
  • In the coming six months, respondents expect that ad networks will see the biggest declines in allocation of marketing spend; viral marketing and SEO will likely see the biggest increases. Behavioral Targeting is the category that is least likely to see any changes in spend.

Note that “effectiveness” is defined here as generating conversions, not mere page views — and that SEO is half again more effective than PPC. Notice also that SEO campaigns exceeded expectations of 45 percent of respondents; the next most satisfying tactic — PPC — exceeded expectations of only 25 percent of those surveyed.
And one more encouraging thing: the companies Forbes surveys understood that the important thing about search isn’t traffic (37 percent) or SERP position (34 percent.) It’s conversions: 70 percent.
Organic search = money. Remember that.

Media cabal meets secretly to discuss charging for online content

Top newspaper execs closeted themselves in an O’Hare airport hotel meeting room today, trying to figure out how to charge for their online content. Note: antitrust counsel was in the room; no word about whether he was bound and gagged.
As a consumer, I like free. As a content pro, I know that “free” has cost many of my friends their jobs — and that “free” would not have produced journalistic accounts of this meeting. I’m uncomfortable when industry groups convene in private to discuss whether and how to charge for their products. (Imagine if Exxon, Texaco, and Chevron had a meeting where pricing strategy was discussed.) That’s why there were lawyers there.
But on balance, I guess I’m rooting for them. Reliable, curated information has a commercial value. I’m just not sure I trust them to set the right price on that value.

Why the Verizon deal for Palm Pre is bad for Palm

It may seem counter-intuitive, but today’s announcement that the Palm Pre will become available on Verizon after its six-month exclusive with Sprint is pretty bad news for Palm.
Sprint has had six-month exclusives with Palm smartphones since the first Treo, so a post-exclusive deal is surprising only if you haven’t been paying attention. But usually, Palm’s next move is to ship an unlocked GSM phone for the world market, with Verizon coming a few months after that. But now, AT&T has its own very nice smartphone — the iPhone — not to mention a bunch of Blackberries that people like. And T-Mobile is doing very well with the Android G1 and Sidekick lines, thanks very much, with more Android phones imminent. So the two U.S. GSM players don’t care so much about the Palm Pre. Verizon, on the other hand, could use some sex in its handset lineup.
But what’s big trouble here for Palm is that the Pre now doesn’t have a GSM outlet in the U.S. There’s no question that there will be a Pre for the world; GSM is far and away the most popular mobile technology globally. But don’t count on a U.S. cellco distributor for it anytime soon, which means it will be wicked expensive because there won’t be any subsidized sales. For the U.S. market, the Verizon deal shows Palm’s weakness, not its strengths.