Google Says “SEO Is Theft”

This post began life on a very different note. It was to be a somewhat humorous poke at Google, sparked by something I received in the mail. But in the end, it was about the death of SEO.

When I first began outlining this article, the contrast between the ‘old’ Google, and the company today kept slapping me in the face. It’s possible I’m simply naive, and Google has always been ‘the same’. But I don’t think so.

This is how it began:

Last week (actually last month) I received something I’d bet most of you haven’t: a check made out to me, compensation from Google, the settlement for a legal dispute. No joke – I sued Google and won. And they just paid me.

How much, you ask? One must assume that Google, one of the wealthiest corporations in the world, could afford a decent lawyer, right? And with all the money they have, surely they could have fought rather than settling. Was the liability so great that even with all that cash, access to a lawyer, and an ‘inside track’ on looking stuff up, like case law, precedents, things like that – not to mention all the information on the entire planet – Google was afraid?

Why not just use some of that cash horde to “bury me with paper” ( I heard that once in a movie), filing motions, affadavits, restraining orders. They could probably have tied me up in court for decades, or at least that’s what I assumed the implied threat behind being “buried with paper” was.

So what could be so bad as to make great big Google settle with little me? I’ll tell you exactly: Google overcharged me. So I sued them, and won. And now they’ve paid up. Still don’t believe me? Gawk at this, buster:

 

My Google settlement check

That's me, that's Google, and that's my settlement!

 

I used to do quite a bit of advertising with Google via Adwords. One of the parameters within Adwords is ‘Daily Budget’. This is supposed to be the maximum amount you can spend in a day on your ads. It tells Google to stop running your ads when that threshold is reached. In fairness, Google tells you that you could conceivably be charged up to 120% of your ‘Daily Budget’ on any given day, so as to smooth out ups & downs in daily traffic volume and ad impressions, but that over a month period, you won’t be charged more than your ‘Daily Budget’ would come out to.

Somehow or other, Google screwed up. Despite an extreme concentration of the biggest brains on the planet – not to mention the largest computer network ever built and single largest ‘x-million’ core networked processor – Google messed up their Excel spreadsheet that had my daily Adwords spending on it. As it turns out, that ‘guarantee’ that they would smooth out the “conceivably up to 120%” thing so that it came out to only 100% of what I agreed to spend over the course of each month didn’t work out so well. They managed the 120% all right, just not the commensurate reduction necessary to balance it all out.

But that’s not all; Google managed to charge me on the days I wasn’t even advertising, days when my campaigns were on “pause”. Finally, adding ‘insult to injury’, they didn’t just ‘hit me up a little’ when no campaigns were running, they dinged me the full 120% of my ‘Daily Budget’ on those no-ads-running days. Let me say that again: Google, my once-loved-and-admired “provider-of-all-things-internet-including-my-income”, stole money from my Adwords account (ok, so it wasn’t actually taken out of my account, it was added to my monthly Adwords invoice), creating bogus charges for running ads that never ran!

Turns out I wasn’t the only one, either. A printing company in Minnesota, and a guy in New Jersey had the same thing happen to them. But unlike me, who at the time still thought of Google more as a benevolent internet company than a cut-throat corporation, they were pissed. And they sued. But they didn’t ‘just’ sue, they figured this was happening to others and initiated a class-action suit.

If it sounds a little like the kind of failed extortion scam you’d see in a low-budget made-for-tv movie about some third-rate loser mafia crew out of New Jersey, that was my feeling as well.

It’s hard for me to imagine Google this way, but the alternative is even more ‘out there’ – that Google knowingly or intentionally ripped me off. And the hardest part of that to swallow isn’t just that a big corporation would do something illegal (won’t even go there), but the notion that Google could actually be a “greedy corporation”.

(And here is where I abandoned the light-hearted “silly old Google” article I had started writing.)

I’ve been working in this industry since it’s inception. In fact, I was working in the industries that ‘gave birth’ to all of this, and have watched & participated as it evolved. I remember clearly the “pre-Google” internet, their swift rise to dominance, and the generally-held impression of a rare, really ‘good’ corporation, fashioning itself into a company that resonated with the “ideals” of the internet itself.

That image and sense of Google was so strong and widely-held that when something less-than-ideal would happen, it would be dismissed out-of-hand. For a long time, it was as if most people just knew that Google couldn’t or wouldn’t do anything that wasn’t somehow, at some level, beneficial or for the ‘greater good’.

It’s only been in recent years that this sterling image has seriously been called into question. And, to my dismay, it appears that in fact Google is “guilty as charged” – a company who’s actions are now often self-serving, at the expense of others, and  intentionally obscured.

(What we’re talking about here is the overt conflicts-of-interest impacting online business. I’m not even touching on the scary-in-its-real-significance invasion of privacy stuff. While some may buy the “We screwed up” mea culpa once or twice in some areas, Google has even admitted intent here. More than once. )

I won’t recite the litany of ‘grievances’, though one of the best illustrations of this is the whole organic search space that Google dominates. Aaron Wall’s blog at SEOBook has been illuminating Google’s often-nefarious changes and double-standard practices for some time. I have to admit, as compelling & convincing as his posts were – and they were *really* compelling & convincing! – I had a lot of resistance to re-evaluating my stance on Google as a company. But the increasing number, and severity, of Google’s “transgressions” have plainly removed doubt about their intentions, and willingness to “play dirty”.

All of which brings me (finally…) to the idea that prompted me to write this post the way I did.

In my business – developing revenue-generating websites and teaching others how to do so – I’ve had to become an expert in SEO, something that was years in the making. Prior to that, my focus was on paid traffic and “SEM” (“Search Engine Marketing”), mostly via Google’s Adwords PPC advertising. I was a “Google Certified Professional”, managing a monthly spend of approximately $100,000 (and unbeknownst to me, also ‘qualifying’ for the above class-action lawsuit).

Over the past 12-18 months, Google has implemented changes in search that made the practice of SEO – search engine optimization – increasingly confusing and significantly harder, while vehemently denying that they were “anti-SEO”. Concurrently, they’ve been shrinking the organic search results real estate on their pages, with proportional increases in paid ad real estate.

Since search engine traffic acquired through rankings are the ‘lifeblood’ of so many companies, and a major focus of what we do, and what we teach, any changes impact us directly. And yet we still look to SEO as a viable business strategy for traffic, and the resulting revenue.

But that needs to change, because it’s abundantly clear that Google will continue making it harder & harder.

In a recent interview I read, Larry Kim of Wordstream said something that cemented all this for me. He visited with Google recently, and says they have shared some of their 2013 plans with him. In the interview, he was asked what changes he expects from Google in 2013 as far as search is concerned:

“Google will make SEO increasingly difficult, by making it un-measurable, by crowding out search results with larger paid ads and ad other formats, and rolling out algorithms that actually punish SEO.”

What he said next was what really hit me, as it puts all of this into context, and provides the ‘answer’ that most suspected, but have had such a hard time accepting:

“I think that Google’s CEO, Larry Page, views SEO clicks as theft and has basically declared a War on SEO to drive Google revenues.”

I may not like it, and it ‘seals the coffin’ on any idealistic view of Google, but it makes complete sense. The take-away to all of this? Any business model that is built on, or relies on traditional SEO will seal it’s fate. The way to future success is in ranking through ‘Authority’, alternate traffic sources, and paid traffic. SEO really is dead.

About Michael

Michael Ullman is the President of Analogy Marketing. He is also the author of several best-selling Internet Marketing courses, and writes extensively about the industry.

Comments

  1. I got one of those settlement checks too – for about $2.49 LOL. Thought it was a settlement for a stock holders’ class action suit – used to own a few shares of GOOG. Also did quite a bit of PPC advertising on AdWords back in the day as well. Thanks for the clarification and interesting post!

    • Yup, I’ve had a few of those checks as well. Every now and then, a check will show up for $7.16 or something, and I’m off on an ‘adventure’ trying to figure it out – usually either a stockholders settlement or product suit settlement.

  2. Strong words coming out of your mouth Michael;) Does this mean adsense and the traffic course in time wil lose there effects, and people will have to start doing more paid advertising?

    • Hey Quincy,

      Strong words indeed, and very serious!

      However, I think just the opposite, but for those reasons: Adsense will thrive, but the traffic will have to come from sources other than from Google search. Unless you’re either a big brand, top Authority site, or in a fringe area, that will be the case for everything. For 90-97% of businesses, Google search will not be a viable or reliable source of traffic.

      As for the “Traffic $100k Blueprint”, it will become all the more important. With SEO becoming increasingly less able to drive traffic, alternate sources & tactics become more and more essential.

      Any it just so happens we’ll be releasing ‘Version 2′ in a few weeks… :)

      • Wendy Plowman says:

        “Any it just so happens we’ll be releasing ‘Version 2? in a few weeks… ”

        I think Michael meant to say Version 3…yes?

        • Hi Wendy,

          Actually, I did mean to say Version 2, but was referring to “Traffic $100k Blueprint”, which is still in it’s initial release. We’ve been updating the info – in fact, it’s an entire re-write.

          “Adsense $100k Blueprint” is coming out in version 3 (“V3), while “Traffic $100k Blueprint” will be coming out in a few weeks as Version 2.

  3. I got one of those settlement checks from google too. It was for a measly 16 cents.
    I also find it ironic that googles slogan is “Don’t be Evil”.

  4. sanjay sharma says:

    After reading this article and hearing a lots about google these days, it is clear to me that in coming days that ranking sites with the help of seo going to be very difficult.

    Instead of focusing on problem what are your suggestions to get traffic other than adword traffic.

    Sanjay Sharma

    ps your article really scare me :)

    • Nice to see you here Sanjay, thanks for stopping by!

      My point, as you know, is simply that free traffic from Google is becoming significantly scarcer. The alternatives are a) paying for traffic, and b) finding alternative sources. For our own sites, we’re using both; on some projects we rely exclusively on paid traffic. It’s reliable, predictable, and scalable. On other projects, it’s a mix of ‘long-tail’ search, Social Media, ‘source’ traffic (niche-specific places), and other areas like forums and Web 2.0 sites.

  5. Sanjay, I had the same feeling about the article;), but hearing all the buzz about seo getting harder can be a good thing. A lot of people might not go through with all the heavy work that involves doing SEO. it also motivates you to look at other traffic sources. I have told my boss that i will leave the company at 1-1-2013, and that gave me a real kick in the butt. I have no options than moving forward at a good pace. The project i wil be working on, will be facebook/youtube oriented, but you better believe I will be using the tactics from Adsense v3 and “Traffic $100k Blueprint”.

    Amazon will be opening a online store in Holland to compete with the biggest online store at this moment. Facebook/youtube and the blueprints will be key for this succes.

    Q

  6. Awesome post Michael, very interesting stuff here bud…

  7. Also being an SEO pro for numerous years, this doesn’t surprise me one bit. What is always suprising though is the amount of people who kick up such a fuss whenever algorithm changes that affect the SERPS are introduced. At the end of the day, google are a money making company. They don’t owe us a living, instead we make one in the same way parasites live off their hosts. And in the same was as nature when a change is made only the quick to adapt can survive. Whether adapting means changing your strategy or knowing when to call it a day and find another way to monitise online marketing (will an every expanding industry such as this, there are becoming more and more ways to do this every day)

  8. I’m just new to SEO world and still learning more about it. Thanks anyway for sharing something about SEO.

  9. Hey Michael,

    I am also tired from SEO. I did made some money out of it but now it seems a bit confusing to me and unpredictable too.

    I tried promoting my sites with Google Adwords and they deleted my campaigns because of “bridge page” policy.

    Do you know how to overcome that bridepage issue ?

    Would appreciate your reply Michael.

    • Hi David,

      Yeah, it’s a problem. The key to Adwords in that regard is your landing page; make it a strong page hanging of a real site and you’ll avoid that problem.

      • Thanks Michael,

        I tried promoting diet pills and targeting keywords as product names. Would you like to give few tips regarding how to look real for Google Michael ?

        I am really frustrated :( Everything went good when I started SEO but now after my sites got penalized I am very tensed.

  10. Hi Michael,

    If we are heading towards paid traffic how can we determine if our Adsense revenue will be greater than advertising costs?

    Thanks
    Shaun

    • Well, there’s the ‘rub’. We don’t want to use Adsense as our primary monetization when we’re using paid traffic. As we move away from SEO / Google search traffic, we have two alternate ‘paths’ – a focus on non-search free traffic, or paid traffic with alternate monetization. Both are potentially strong, valid models.

      Btw, this is something I expect to be talking a lot about on the forum once V3 is comfortably out and in use.

  11. Thanks for the information, Michael. Great article.

    How do you think will this affect local search and ranking local businesses and their websites? After all, they are in generally much less competitive niches.

    IMHO, video and Youtube channels as a medium to get ranking and visibiliy will go a long way (if done properly) to beat the competition, at least for the time being.

    Thanks

    Max

  12. Thornton Douglas says:

    Hi guys…. I’m a long time lurker on this and many other sites but I just had to speak on this topic.

    The one thing I’ve noticed about marketing and business is the fact that it changes and evolves over time. Things that used to work eventually stop working and a new technique has to be developed to adapt.

    These changes that Google keeps making are merely learning curves for those who are in business for the long haul. Staying the course and remaining open to learn new techniques will always important in long-term profit.

    • Hi Thornton,

      You said it well, these changes are simply learning curves for those in the business for the long term. Change happens in every industry – it’s just greatly accelerated here.

  13. There is one important point here – when Google starts to lose revenue as a result of lost search traffic to other providers, it will (eventually) have to go back to its core values to stop a haemorrhage of market share. With all the recent algorithm changes, search quality is dropping overall IMHO with concurrent rises in Bing search traffic. Add to this the fact that too much weight on ads in the area above the fold drives users away, and in droves. Additionally, as more sites switch to advertising, competition increases, CPC prices go up, and the smaller companies (who may frequently compete on price or better services) who cannot afford to pay high prices get priced out of the Google market, feeding Bing search results instead -and remember that many internet searchers seek these smaller companies, not the big boys. They also dont trust Google anymore as much as they did – commercialism is now just too blatant.

    Add it all together and a small drop in Google traffic may rapidly become a flood, and ultimately money talks. We just have to wait until the metrics start to show Google that they are barking up the wrong tree.

    • Great comments, JP~

      There’s the ‘unseen’ dilemma for Google: success in selling ads revolves around search traffic; search traffic revolves around effective SERPs. Too much success selling ads results in SERPs deterioration, which in turn impacts success selling ads.

      Unfortunately, Google enjoys near-unquestioned ‘loyalty’ – a majority share of searchers who have become effectively ‘wired’ to default to Google, which means it would/will take a huge mass to counter the incredible inertia.

      Might happen eventually…

      Michael

  14. Yes, I’m a little late to the party here, but I have to respond.

    It appears that, if Larry Page really believes SEO or organic results is truly “theft”, then he may be in direct contradiction with the “do no evil” axiom that their mission statement has referenced in its different forms over the years. SEO can be and should be (IMO) a symbiosis with search engines.

    In fact, Google, if they truly believe and practice the first line of their mission statement, “Focus on the Users and Everything will Follow”, then they would see SEO’s as a potential force for accomplishing their mission of a better experience for the users. In fact, many SEO’s are Google’s best evangelists as they help coach business owners about why creating great content and other media that contributes value to the websphere. Sure, there are SEO’s that are still working on nefarious ranking tactics, but focusing on quality and user engagement is a win win.

    So, Google has SEO’s working as web content clergy and as such, I’d like to believe that their contributions have outweighed the manipulations. That said, the idea that Google punishes manipulative SEO tactics, and will do so more in the future is reasonable and I could see Larry considering clicks garnered from manipulation as theft. But to say that applies to SEO as a whole is throwing the baby out with the bathwater. And that baby is quality content and marketing approaches that Google values and wants to communicate to content developers.

    If they stay the course of randomizing results and destroying their built in content clergymen (white hat SEO’s IMO), then they are compromising quality – plain and simple. Quality has already been effected in the Google+ Local results and will diminish moreso in the organics if this is the path they take. The arrogance is as boundless as Google’s perceived future market dominance. Sacrificing quality to enhance revenues is not a new idea, but it appears, if the statement about Larry Page is true, it’s an idea that a young billionaire has subscribed to.

    I’ve heard it said before: “Every great cause begins as a movement, becomes a business, and eventually degenerates into a racket.”

    Mr. Page had a belief that search engines should judge results by their citations (link popularity) back when he started Back Rub in 1996. Perhaps he has come full circle and he’s doing his best to turn it into a Racket if it isn’t already.

  15. Michael,

    Reading all this, I wonder:

    is it still worth the trouble making a classic blueprint site?

    Will they still work?

    • It’s a great question, John~

      I think more & more we’re going to see increasing stratification: larger, well-funded sites on one end (inlcuding larger interests creating smaller sites), and small, ‘specialty’ sites on the other. The ‘in-betweens’ will be be either additional ‘specialty’ sites, or paid-traffic-driven efforts at getting big quickly.

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