Tuesday, March 23, 2004

More Yahoo.. it becomes clearer ..PFI with PPC = spam guard
Inclusion and Its Discontents: "content is a product of human intelligence, editorial decisions, and an attempt to communicate certain concepts. Search indexes are products of algorithms. It's the existence of this algorithm that protects Yahoo from ethical infringement. The algorithm is independent and exists only to generate relevant lists of sites. It's outside business concerns. At least, it needs to be.
By including PPC results within organic listings, Yahoo set itself up to generate revenue by favoring its PPC clients. Yahoo has incentive to game its own system. That ain't good. It introduces the perception of potential ethical breach. Yahoo just put itself on the brink.
Charging PPC in Inclusion Makes Sense
Charging a PPC with inclusion is not just a money grab by Yahoo. I'm sure Yahoo is happy about the revenue this model will generate, but don't think it's the primary motivation for launching the program this way.
If clicks are free in a paid inclusion program, site owners can optimize for volume: search spam. If clicks cost, site owners must optimize for relevance. When site owners pay for clicks, they must be mindful of where and how frequently they show up.
Search providers should be aggressively vigilant about spam. The problem must be solved with technology and human policing. PPC in inclusion is an economic tool against spam. Is it the only economic tool available? There may be others, though I haven't heard reasonable suggestions just yet.
The PPC economic tool isn't free. Yahoo will spend plenty of money defending it to not only the industry but also the public at large. Is PPC a money grab? Perhaps, but if it harms consumer brand perception, it's far from a good deal."

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