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Friday, April 5, 2013

Can Quality Score Be Gamed?


Can Quality Score Be Gamed?

  |  April 5, 2013   |  1 Comment
Like most complex games with many intelligent participants (such as financial markets, chess, and high-stakes poker), your first hunches about how to "get ahead of the pack" in the Google AdWords auction are likely to be trivial, clichéd, or just plain wrong.
This year, as ever, you'll read plenty of articles focusing specifically on Quality Score and "what to do about it." Conference sessions will teach you Quality Score "tips and tricks."
Since this is about rank and CPCs, admittedly we'll always be driven to crack the code in some way.
This dates all the way back to when Overture ran a pure PPC auction. Under those circumstances, would it make sense to write extremely restrictive, "filtering"-style ads to maximize the value of a click to your business, while garnering a lot of free impressions? Of course it would. High CTRs, in that instance, wouldn't be desirable. Overture tried to address that problem with a laborious, cumbersome human editorial process. (Arggh.)
When AdWords finally introduced CTR into the ranking formula, it led to a great leap forward in relevance, and fewer opportunities to game the system. That being said, many of us enjoyed early-era tricks. Fun in a time machine set to 2002: come in guns blazing so you enjoy very high CTRs associated with high ad positions. Then, "lock in" that CTR history by doing this at a reasonable volume, then gradually walk your bids down, holding your position. That worked pretty well then. The system is much more sophisticated today.
People are still routinely coming up with "Why don't I move my queen way over there now and put my opponent in check?" moves for AdWords. Those moves are usually neutralized by a more sophisticated algorithm. Google's spokespeople - not always wanting to say much about the formula beyond the published overviews - have often felt compelled to dispel certain AdWords myths. The "don't get your hopes up" points made by AdWords product developers in recent years have included:
  • AdWords normalizes for match type. You're not going to be penalized for using broad match or rewarded for using exact match.
  • AdWords normalizes for ad position. Aim for the positions that make sense for your business. Lowering ad positions that by definition enjoy a worse CTR does not harm your keyword Quality Score or any account-wide factors.
  • You can't improve Quality Score with negative keywords. (Really?) Well, I've heard that said by a high-ranking Googler, and no, I don't really believe it.
  • While there is an account-wide Quality Score factor (enough bad history across the board can affect your whole account), one of Google's top AdWords architects has denied that there is a specific factor at the ad group level. One badly chosen keyword in an ad group won't "contaminate" others in an ad group.
Current industry consensus is that 50 percent to 75 percent of AdWords keyword Quality Score comes down to CTR, with personalization elements adding complexity. Since Quality Score is reputedly calculated on the fly for each query, the reporting you see in your account is not "the" number, but rather an average. (For Google's ever-changing summary of how Quality Score is calculated, go here.)
"Other relevancy factors" round out the CTR factor. These may involve semantics; display and destination URL (Google can tinker with how much users, and Google, trust your company's main identifying factor); and the vagaries of how many ads Google wishes to show on a page.
"Landing page experience" is another component of Quality Score. It's probably exaggerated by third-party pundits today. Note the word "experience." User experience is best measured by user behavior patterns, not solely based on some arbitrary formula about which keywords match which landing page elements, etc.
Further to the landing page question: recall that Google started out by banning a narrow range of user experience violations, such as pop-ups. Later, it extended the policy to a wide range of trust-eroding practices. It's important to scrutinize both the letter and intent of Google's Landing Page and Site Policies to understand if there is something you're doing wrong. Google is trying to protect users from scams and bad user experiences, and it does so through a combination of automated and editorial means. Hobby horses such as landing page load times enter the mix at various times, sending some advertisers scrambling to overreact to those stats for all the wrong reasons. (Speeding up your site is always a good idea, but you have no idea how much AdWords Quality Score is penalizing you for having a slow one, if at all.)
There are too many moving parts to user experiences for Google to be effective in policing them with human and bot oversight (though a quick read of the guidelines implies that human oversight and manual scoring shouldn't be ruled out as elements of Google's practices). Rather, proxies for bad experiences may be used as Google's models become better and better at confirming bad patterns statistically. (Do horrible bounce rates factor in? Well, they should, but then, why does Google let you keep spending so heavily on pages with horrible bounce rates? Assume nothing.) And it might be easiest for Google to do relatively little on this front unless real humans take a real dislike to your ads or business model. Now, as ever, Google does not like "thin" affiliate sites, click arbitrage, fake comparison sites, banned pharma products, and so on.
Make no mistake: "crappy" pages often have little difficulty being associated with keyword Quality Scores of 10. If the site is good enough to get the job done, and the whole campaign does a good job of matching up users with related commercial intent, then Google isn't going to throw up roadblocks needlessly.
It's not a good idea to obsess over Quality Score. Advertisers are doing a bad enough job settling on the correct metrics to manage campaigns to; testing ads methodically; understanding statistical significance; understanding campaign settings; unraveling attribution puzzles; and so on, that they're likely to fail in attempts to test cause and effect in Quality Score engineering.
That being said, the system isn't bulletproof. We can still prevail over competitors if we follow strong hunches about the vulnerabilities of Quality Score and the effects of the overall formula on rank and CPC. Consider the following tips:
  • In addition to keyword-level calculations, Google may apply an account-wide calculation that impacts your ad positions and CPCs. Many advertisers get paranoid, therefore, about low Quality Score keywords, and race to pause them. But they may be overreacting. Low Quality Score keywords are probably diffuse or wrong in intent, and need to be addressed. But if they're not high volume, they probably don't hurt that much. What is more interesting is the opportunity you might have to lock in a higher overall account Quality Score by continuing to hammer hard at your high volume "10" keywords. Maybe you're bidding a bit higher than you would like on some of these. But more impressions for 10-Quality Score keywords that are working OK for you economically can't hurt your account Quality Score. You're laying down all of this positive history. Maxing that as a proportion of your spend in the account may be a benefit from a Quality Score perspective.
  • Google has kept "Display URL" in the mix as a kind of wild card in Quality Score calculations. I believe it is largely a "rich get richer" shortcut for Google to emphasize trust and quality in the results. Think broadly about your business strategy. Everything about the way you build your brand and conduct your business should be aligned with improving that brand's reputation. "Throwaway domains," generic microsites, and quick shifts in strategy won't be aligned with Quality Score health, long term. This also means that Quality Score benefits recognizable brands and well-liked micro-brands. The Johnny-come-lately with a weak offering and a stop-and-start ad spend is not going to garner the same responses as a business with a consistent marketing strategy.
  • Units like Sitelinks, designations like Trusted Stores, captivating visuals like Seller Ratings Extensions: various ad innovations of these types tend to goose up CTRs, all else being equal.
  • In a Quality Score world, trying to finesse your spend by not buying your brand keywords is a counterproductive strategy. You need to own these and you need most variations of these to become 10s. Combine premium placement in the large ad unit with Sitelinks (for example), and your CTRs may go through the roof. As such, you're laying down statistical evidence that you're significantly more loved and trusted than Google's models would predict (i.e., what your competitors can muster).
  • If you're managing only to CPA and failing to push your ad tests harder to find potential mutant ads that deliver great ROI along with "less bad" CTR, you're not optimizing your account fully. Reconsider the advantages of more clicks on ads.
  • Geo-target if that helps you push up response rates to ads and user engagement on-site.
With these ways to legitimately "trick" Quality Score, you'll have enough on your plate. Meanwhile, many of your competitors will be frantically moving their chess pieces into clichéd or trivial positions, until they finally realize you've been thinking 10 moves ahead. Checkmate.

    Tuesday, March 26, 2013

    Men, Women, and Status in Negotiations


    Men, Women, and Status in Negotiations

    EDITED BY PON_STAFF ON  / BUSINESS NEGOTIATIONS
    A growing body of research suggests that status concerns vary depending on the gender of interested parties.
    First, men tend to care more about status than women do. Using a university sponsored fundraising campaign, researchers Bruno S. Frey and Stephan Meier of the University of Zurich examined how social-comparison information affected contribution rates.
    • Male students who learned that a high percentage of students had contributed to the campaign were more likely to make a contribution than were female students who received the same information.
    In the context of negotiation, professors John Rizzo of Stony Brook University and Richard Zeckhauser of Harvard University asked a group of young physicians about their reference groups and salary aspirations.
    • Male physicians compared themselves to reference groups that earned higher salaries than the ones female physicians selected. 
    • In addition, men’s salary reference points were more indicative than women’s of how much they earned later.
    • Finally, women tend to compare themselves to particular individuals whom they know, while men tend to assess themselves according to information about typical behavior.
    For this reason, when negotiating, consider offering different social comparison information to men and women. You might tell a male prospective hire that you’re offering him more than you’ll give others with his qualifications (assuming that is true).
    When negotiating with a female prospect, you might be more specific:
    “We recently interviewed someone similar to you, a Kellogg MBA with several years of consulting experience. To signal how much we want you to work for us, we’re offering you more than we offered her.”

    To Improve Your Negotiation Skills, Learn from a Pro


    To Improve Your Negotiation Skills, Learn from a Pro

    EDITED BY KEITH LUTZ ON  / NEGOTIATION SKILLS
    On February 16, in the midst of the National Basketball Association’s (NBA) All-Star weekend, members of the National Basketball Players Association (NBPA) unanimously voted to oust Billy Hunter as the union’s executive director.
    “This is our union and we have taken it back,” National Basketball Players Association president Derek Fisher said, as reported by ESPN.com. Fisher said the union had been “divided, misled, [and] misinformed,” by its leader. Hunter hinted in a statement that he might contest his firing in court.
    As the union’s leader since 1996, Hunter negotiated three collective bargaining agreements for NBA players, contributing to raising their average salaries to more than $5 million, the highest in team sports.
    Divided Union
    Conflicts between Fisher and Hunter divided union members during the 2011 NBA lockout. According to ESPN.com, “agents didn’t like [Hunter], questioning his bargaining strategies, and they were frustrated they didn’t have a bigger role in his union.”
    After Hunter was accused of numerous indiscretions, Fisher pushed for a review of him. In its review, an independent law firm criticized Hunter for various conflicts of interests and poor decisions, such as hiring family members and friends and billing the NBPA for questionable travel and gift expenses. The review did not find Hunter guilty of any criminal activity, but three government investigations of Hunter are ongoing.
    After the review was released, the members of the NBPA put Hunter on a leave of absence. About 35 NBA players attended the union committee’s annual meeting in February to discuss Hunter’s future.
    Hunter’s Dismissal
    NBA superstar LeBron James and longtime player Jerry Stackhouse reportedly took the lead in arguing for Hunter’s dismissal, according to the New York Times. James’s involvement was unusual: league superstars rarely get involved in the nitty gritty of labor negotiations and union management.
    James “practically cross-examined the lawyers to prepared the report on Hunter,” the Times reports. And he and Stackhouse demanded explanations from committee members who previously had sided with Hunter rather than Fisher.
    NBA players widely respect James for his business savvy and interpersonal skills. So it was not surprising, given James’s forceful arguments against Hunter, that the committee voted unanimously to release Hunter from his duties.
    The situation speaks to the power of convincing influential parties to lead important negotiations. One well-respected and admired leader may be uniquely posited to wrap up a negotiation that took many behind-the-scenes players to engineer.

    Friday, March 22, 2013

    Neanderthals Were Not Good at Social Networking


    This is just to funny not to pass on....


    Neanderthals Were Not Good at Social Networking

    by 94 minutes ago
    Subscribe to Social Media & Marketing Daily
    Neanderthals’ bigger eyes and bodies meant they had less brain space to dedicate to social networking, which may explain why they died out and Homo sapiens conquered the planet, according to a new study. -- Agence France-Presse, March 12, 2013

    OccipitalPunny: I don’t get it.

    NeanderYall: Don’t get what?

    OccipitalPunny: Why the humans don’t follow me back when I follow them.

    NeanderYall: Oh not this again.

    OccipitalPunny: I like all their posts and re-tweet everything but they don’t follow me back. It’s like I’m not good enough or something. Like they are so smart and we’re not.

    NeanderYall: Um maybe they are? Did you see the Prezi with their new cave art? And their new totems are awesome.

    OccipitalPunny: Whatever, we basically had the same totems five years ago. They just didn’t catch on because the market wasn’t ready.

    NeanderYall: Uh yeah that and also the craftsmanship was maybe not so great.  I mean you remember the Earth Mother figurine fiasco.

    OccipitalPunny: Ugh don’t remind me. What a disaster!

    NeanderYall: LOL I swear the gods are still angry with us.

    OccipitalPunny: Ha yeah probably.

    NeanderYall: And their collaborative hunting app is honestly pretty cool. I just wish they would release it on our operating system.

    OccipitalPunny: It’s cool but the whole Ambush feature is not fair to the mammoths.  What about market equilibrium? It’s like they are trying to squeeze them out.


    OccipitalPunny: Anyway I’m still mad at the humans.

    NeanderYall: I know. They are so full of themselves. Just because their tools are, like, way better than ours? 

    OccipitalPunny:  Dude, our tools aren’t that bad. They get the job done!

    NeanderYall: Totally. I will put our hide scraper up against theirs any day of the week.

    OccipitalPunny: You know what I think is, I think the hide scraper is a sleeper product. In a couple years it will be standard. I’m telling you today.

    NeanderYall: Maybe. But I gotta say I heard really good things about the new iAxe 5.

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    Read more: http://www.mediapost.com/publications/article/196170/neanderthals-were-not-good-at-social-networking.html?edition=58101#ixzz2OIC35GYd

    Thursday, March 21, 2013

    Report: World Industrial Robot Demand Up 38 Percent


    Report: World Industrial Robot Demand Up 38 Percent

    Robots on the rise in North America


    Robots on the rise in North America

    Posted by Rick Lingle, Technical Editor -- Packaging Digest, 2/7/2013 1:28:14 PM

    Robot

    The North American robotics market has recorded its strongest year ever in 2012, according to new statistics from Robotic Industries Association (RIA), the industry's trade group.

    A total of 22,598 robots valued at $1.48 billion were sold to companies in North America in 2012, beating the previous record of 19,337 robots sold in 2011. When sales by North American robot suppliers to companies outside North America are included, the totals are 25,557 robots valued at $1.66 billion.

    Compared to 2011, North American orders were up 17% in units and 27% in dollars.

    "The Automotive industry has continued to be the strongest driver of the North American robotics market," says Alex Shikany, Director of Market Analysis for RIA. "Robots sold to automotive OEMs in North America jum
    ped 47% over a then record-setting 2011, while robots sold to automotive component suppliers increased 21%," he noted.

    Industry, applications results

    Sales were also up in metalworking industries (+12%) and life sciences/pharmaceuticals (+3%). In terms of applications, increases were seen in assembly (+40%), spot welding (+37%), arc welding (+24%), coating & dispensing (+13%), and material handling (+3%).

    The fourth quarter of 2012 was the strongest quarter ever recorded by RIA (the association began reporting data in 1984) in terms of units ordered, with 6,235 robots sold to North American companies. The fourth quarter w
    as up nine percent in units and 21 percent in dollars over the same period in 2011.

    "It is promising to see such positive growth in robotics despite the tumultuous manufacturing environment throughout 2012" says Jeff Burnstein, President of RIA. "This growth is an indication that more North American companies are looking to automate in order to reduce costs and increase productivity, and that is a good sign for robotics."

    U.S. trails only Japan in robotics use

    RIA estimates that some 225,000 robots are now at use in United States factories, placing the U.S. second only to Japan in robot use. 

    "Many observers believe that only about 10% of the U.S. companies that could benefit from robots have installed any so far," Burnstein says, "and among those that have the most to gain from robots are small and medium sized companies."
    Founded in 1974, RIA represents some 300 companies, including leading robot manufacturers, component suppliers, system integrators, end users, research groups and consulting firms. RIA's quarterly statistics report is based on data supplied by member companies representing an estimated 90% of the North American market.

    What will 2013 hold? Burnstein said RIA does not make robotics sales forecasts, but he believes that if the economy remains strong we should be looking at another good year for the robotics industry.

    "The increased demand for robotics was evident at this year's Automate show in Chicago, which had record setting attendance levels," says Burnstein. "It is clear that people are excited about automation and the benefits it provides."

    Source: RIA