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Friday, November 14, 2014

Getting Millennials To Buy CPGs: Bring On The BOGOs

Getting Millennials To Buy CPGs: Bring On The BOGOs
by Larissa Faw, Thursday, November 13, 2014 5:45 PM
Millennials are projected to spend $65 billion on consumer packaged goods (CPG) over the next decade, yet there are many misconceptions and challenges in reaching these shoppers, according to a white paper by WPP's Geometry Global.
There are “many traps CPG marketers can unknowingly fall into if they make decisions by only referencing generalized information or trends about Millennials," says Eric Pakurar, Chief Strategy Officer, Geometry Global North America. "When we took a close look at Millennials’ shopping behavior in CPG categories, we found that very few widely-believed assumptions about Millennials held up. For instance, when they’re going out to buy paper towels, shampoo or make-up, they don’t travel in packs, they don’t research products online and they’re not using their mobile phone as an in-store or list-making tool. This research showed us how critical it is to examine the life stage and shopping goal— such as the categories they’re shopping for— to understand or predict their shopping behavior."
One important insight uncovered by the research is that digital and mobile play a very limited role — if any — with Millennial CPG shoppers. Retailer apps are competing with every other app on a Millennial’s phone, which means that no marketer should assume that just because Millennials are "mobile," they will seek out a retailer or a brand app. Most Millennials actually weren’t aware of these apps at all. 
Millennial-age shoppers rarely look online before shopping  and even then, the main resource they seek is customer reviews. They avoid manufacturer Web sites, viewing them as biased.
Instead, once in stores, Millennials are task-oriented shoppers. They like to get in and out of stores quickly and they are on the lookout for shortcuts and cues to help guide shopping or alert them to special offers. The like to use aisle endcaps, for example, as navigational tools and are more likely to go down the aisle to “get the best deal.” They want to make the comparison at shelf based on all of the choices they have.
And a recurring theme is that most Millennials tend to purchase products only when they run out. Indeed, these young shoppers do not typically plan their shopping trips or make shopping lists. Only one in five shoppers will set a budget for their trip, and the majority have only a semi-defined, total-trip estimate that they didn’t plan to stick to “strictly.”
In addition to their procrastination, Millennials are loners. Many of these shoppers prefer to shop alone while grocery shopping, a sharp contrast to apparel shopping. And, with a few exceptions, they don’t ask for input from their (Facebook) friends. 
Meanwhile, Millennials are typically less driven by defined possessions, and that extends to communal ownership of many household products — although there are still some personal items that are off-limits. Those with roommates were not likely to have set schedules or rules about how purchases for the home were split or consumed. Often, when something runs out, the next roommate to visit the store makes the purchase.
The research also found that although Millennials are very aware of climate change and opt for environmentally friendly products in most categories, few “green” products actually make it into their carts due to confusion about the actual benefit and the fact that most of their purchasing decisions are dictated by price.
"While they didn’t always buy cause products, many were very aware of bringing in their own bags to shop," says Pakurar. "Bringing your own bag is a more visible sign of being socially-conscious — rather than buying environmentally-friendly toilet paper — and it’s easy to connect using your own bag to a direct environmental impact. They reality is Millennials do tend to rally around causes, but brands need to do a better job of communicating the impact and give Millennials a reason to care."
Ultimately, brand loyalty among Millennials may seem like an oxymoron, yet Geometry Global's research shows that these young consumers do respond to promotions and retailer loyalty programs that offer the specific kinds of rewards they seek — namely, something tangible (besides points), such as gas benefits, free products, or a percentage discount off a purchase. "Coupons, discounts and loyalty programs are often viewed as being for an older crowd, but Millennials love them too," says Pakurar. "What they don’t love, however, is the old-fashioned execution of deals. Many don’t have printers—so forget about digital coupons, they don’t like clipping and the key-chain loyalty cards are outdated. They love [buy-one, get one] BOGOs. They love getting 15% more product. Those are tangible things and you can point to what you're getting. There is a big opportunity to rethink how we use coupons and promotions to get Millennials to try something new."

Wednesday, November 12, 2014

Card-Linked Marketing: The New Wonder Channel?

I am an incredibly curious person. I am also, at least I like to think I am, a very well-read person, particularly when it comes to the world of marketing and advertising.
When something new comes along, especially something that has 75% of marketers singing its praises, I am immediately curious and want to learn more instamatically, as Burt Young infamously said in Rocky. You just knew I had to get a pop culture reference in, right?
The “something” that had 75% of marketers clamoring it over was something called card-linked marketing (CLM). Now perhaps you have heard of this before but I had not – not until I read the results of a survey of 300 marketers which revealed that three-quarters of them “believe this approach could replace existing types of advertising, including email offers (48 percent), coupons (48 percent), newspaper advertising (30 percent), online search advertising (29 percent), and TV advertising (24 percent).”

That line in quotes above comes directly from an article on CMO.com re: the survey and results.
Before I go any further let me state categorically that I do not believe anything, ANY channel will replace any of the above for the simple fact that in today’s world brands and marketers and advertisers need an integrated marketingapproach to reach consumers.
I am, in case you did not know, perhaps the world’s biggest proponent of integrated marketing so I surely do not think any channel will be replaced.

However, that does not mean there is not room at the integrated marketing table for another channel.
Enter CLM, which according to Kasey Byrne, SVP ofCardlytics a leader in card-linked marketing, is defined as “a new digital media channel for retailers, restaurants and other consumer facing brands which uses actual past purchase information to create targeted, relevant advertising for consumers, presented through the consumer’s mobile and online banking application.”
It is also worth noting that the aforementioned survey was conducted by Cardlytics.
But be that as it may, the survey found that 87% of marketers believe there are benefits to CLM with the top benefits being:
  • Better ability to reach loyal customers – 49%
  • Helps consumers save money – 47%
  • Ability to target offers based on consumer purchase history – 45%
  • Increased sales for retailers – 43%
  • Better ability to target new customers – 41%
  • Improved customer satisfaction due to more relevant ads – 33%
  • Precise measurement of marketing campaign results – 27%
On top of all that, says Byrne, CLM has the unique advantage of targeting consumers based on their actual, individual, recent purchase history, not aggregated profiles or personas.
How ‘Bout A Nice B&B?
A nice vacation would be nice right now what with all the snow on the ground here on the East Coast. A quaint B&B would be just right and… Oh wait, I’m not referring to that kind of a B&B.
No, the B&B I am speaking of is bank and brand as in you need a bank, or financial institution and a brand to work when it comes to this form of marketing.

Jason Blackhurst, Senior Vice President, Payment Strategy & Emerging Commerce Executive, Bank of America on why they use card-linked marketing.
Photo of Bank of America ATM Machine by Brian Katt, Framingham Rest Stop, Massachusetts. (Photo credit: Wikipedia)
“Card linked marketing allows us to simultaneously deepen our relationship with customers and with our wholesale merchants. It really is designed to be a win-win-win,” he said. “Merchants win because we’re driving more people or volume and they get to define how they capture that. For the customer, obviously we hope we’ve built a simplified way of receiving offers that doesn’t require searching multiple websites.”
One of those offers may come from a brand such asCalifornia Pizza Kitchen, who use card-linked marketing as a a tool to target new guests and change their dining behavior.
I was curious, from a brand’s perspective, if customers were unhappy about seeing ads in their financial statements but according to Ashley Ceraolo, VP of Marketing for California Pizza Kitchen, the response they received was all positive, adding that “guests were excited to see the special gift from us.”
In terms of their overall budget Ceraolo said card-linked marketing accounted for nearly 20% and may in fact reach 20% in 2014 and added that card-linked marketing “definitely cut into some of the print and traditional advertising (budgets).
So Where Does A Brand Go From Here?
I think if you are a B2C brand this channel of marketing is at the very least worth exploring and investigating if for no other reason it may give a given brand another opportunity to utilize a certain nine-letter word: relevance.
Byrne told CMO.com that “CLM is different because the recommendations provided to consumers are based on actual purchase history, so the ads are more relevant, increasing their likelihood of use.”
If there’s a way to increase the relevancy factor I am all for it – or at the very least the testing thereof.
Look this is no different than any other new “thing” when it comes to marketing. You need to test the waters first. No diving into the deep end, unless you’re feeling lucky, punk. Sorry, another pop culture reference. See Eastwood, Clint.
What do you think?
Do you think you card-linked marketing is at the very least something you would consider testing?
Or do you think it’s not even worth doing that?
Image source: Google GOOG -0.46% Images

11 Marketing Trends To Watch For In 2015


The fundamentals of marketing are always going to be the same, but with the landscape changing at the speed of technology, what matters most now is how one activates the fundamentals. Smart marketers know that they need to get ahead of the trends and anticipate the next big things, or else be devoured by their competitors. Here is what I believe could be some of the most interesting developments next year:

Transparency will become the most important tool of marketing. Consumers are going to continue to exert power and influence. The idea of radical transparency is something that few brands are taking advantage of now, and most brands fight it. Next year the best brands won’t be those with the best stories, or sort of made up fictional stories, but those that will give an accurate and real time picture of what they are doing in the interest of the consumer, at any given time.
CMOs will become Chief Simplifier Officers.Most companies create complexity, especially even as the landscape itself is turning more complex. They’ve arranged themselves in endless new vertical silos, by geography, product, or function that hamper them when it comes to working more closely and with the free flow of ideas. To optimize consumer and customer engagements, CMOs will begin to put silo busting on top of their agenda and begin to think holistically about the company’s overall value proposition, integrating messages and insights across business units, geographies, and functional groups.
We will witness the emergence of the marketing technologists. Too many companies think in terms of digital marketing. Instead, they should be thinking in terms of marketing in a digital world. The best marketer in a digital world would be the marketing technologists, people with heavy digital DNA and technology acumen. They will be integrated seamlessly with the marketing groups and will play an important role in how marketing strategies are developed and applied.
The winners will be adept at agility marketing. Social media produced a different, more elusive consumer with short-term thinking. Marketers are now chasing their daily meanderings in “likes”, “shares”, “tweets”, click-through rates, and ever more immediate but pointless metrics. The best marketers will have ever more consumer data, capable of faster adaption, shorter lead times, and always-on, real-time marketing. Instead of the next month or next quarter the focal point for the winners becomes the next hour.
Media agencies will step up and lead. Media agencies have been built to give strictly narrow media recommendations. But today creativity is the currency of an effective media placement. Media agencies will be moving from being media-facing to consumer facing. Uniquely positioned at the intersection of technology and the consumer, they will become their clients’ key strategic partner, even more so than creative agencies, as big data and technology make “Math Men” the most important asset of marketers.
Hispanic agencies will go mainstream. Hispanics are 17% of the U.S. population, and are 56% of total U.S. population growth since the last decade. U.S. Hispanic purchasing power exceeds $1 trillion and is expected to grow by 2017 80% faster than non-Hispanic. Marketers will finally pay attention next year and stop marginalizing Hispanic ad agencies. Those agencies are capable of engaging consumers well beyond this demographic. Hispanic agencies will reach the mainstream in 2015.
Marketing will shift from globalization to personalization. The world is more connected because of technology these days, but marketing is becoming more regionalized, and more localized, even more individualized, as consumers resist homogenization. Personalization is not a trend. It is a marketing tsunami, here to stay, which will transform how we think about and how we manage global brands. Companies will decentralizing their structure and increase regional and local influence.
Procurement will become more powerful. Companies will continue to maintain a cautious financial stance, and marketing procurement will continue to carry a lot of clout, driving for greater accountability and transparency. Procurement will partner more closely with the CMO, CIO, CTO and CFO to remove internal roadblock and it will become more focused on agency operations and improving efficiencies there, not just fee negotiations.
There will be a growing focus on Internal Communications.Companies will be focused on internal communications as a marketing asset. They will look at it as a key challenge and opportunity to create brand ambassadors and make sure that employees and vendors understand and live “the brand,” as well as the vision and strategy of the company.
Holding companies will start divesting assets. The legacy agencies, those that still adhere to the obsolete TV model, having become mature businesses. The ad giants have been frantically gobbling up digital agencies, but the labor intensive digital model is less lucrative than the TV-focused business model. With growing pressure on their bottom line and with fewer opportunities to grow via M&A activity there will be pressure to divest non-essential assets.
The economics of marketing in a digital world will challenge marketers. Because smart content creation should be native to the digital channel that reaches the audience, the single biggest challenge that marketers will need to solve is how to scale content in an economic way.
Avi Dan is founder of Avidan Strategies, a leading agency search and compensation consultant

Thursday, October 23, 2014

Google Panda and the High Risk of Using Aggressive or Deceptive Advertising

Google Panda and the High Risk of Using Aggressive or Deceptive Advertising

glenn-gabe
22 Comments
SEO Evolution: Sell, Discover, Deliver & Report on Highly Converting Keywords by Krista LaRiviere, gShift
In my previous posts about Panda, I’ve hammered one important point over and over again. User engagement is critically important. If users are showing low engagement, and yielding low dwell time, then that’s a giant invitation to the mighty Panda. So, when conducting Panda audits, I keep a keen eye on factors that can negatively impact engagement, present obstacles for users, and create virtual bamboo.
One consistent problem I have seen while analyzing Panda hits has been aggressive and deceptive advertising. And I’ve seen that much more since Panda 4.0 (including P4.1, which just rolled out on September 23).
Specifically, sites employing deceptive or aggressive advertising are facing big problems Panda-wise. For example, sites that trick users into clicking affiliate links, blended ads, low-quality supplemental content, etc. In addition, I noticed a number of sites impacted by both 4.0 and 4.1 that heavily used pagination to break up articles into many component pages (to gain more ad impressions). And I’m not talking about two or three pages of pagination. I’m talking about 10, 20, or even 30 pages of pagination. Yes, I can feel you cringe as you read that. I did, too.

The Traffic Monetization Catch

So, when Panda focuses on user happiness, it’s not hard to see why sites employing deceptive tactics like what I mentioned above would have a hard time battling the mighty Panda. But you might be wondering why those sites would employ such risky tactics (especially when our furry black and white friend is actively roaming the Web). There’s an easy answer. Money.
With larger-scale websites, there are typically multiple teams working together. And I use "together" loosely here. You have the marketing team, content team, dev team, design team, etc. And of course, if the purpose of the website is to make money, you have the monetization team (or ad team).
Advertising-wise, as traffic climbs the ad team sees the potential of boosting revenue. And that’s totally fine. I get it…companies need to make money. But in my opinion, some ad teams have been too aggressive and have caused situations that heavily contributed to Panda attacks.
Like this one. Notice the giant bamboo slide to no traffic on May 20 (Panda 4.0):
panda-advertising-traffic-drop
And there’s the catch. The marketing team drives traffic. The ad team monetizes that traffic. And they often don’t see eye to eye. Part of the problem is SEO education, and part of the problem includes financial goals. Sure, everyone has goals and the ad team has their own. But that can lead to aggressive ad tactics that put websites at risk.

Let’s Run Some Numbers

Hypothetically speaking, let’s say a website is generating $200,000 in revenue per month via advertising and affiliate relationships. But let’s say the site is employing overactive ad tactics like many full-screen floating ads, blended ads, low-quality supplemental content to third-party sites, masked affiliate links, etc. Panda 4.1 rolls out and kicks the website in the gut and it loses 70 percent of its traffic. By the way, I’ve had a number of companies reach out to me with severe hits like that. I even had one company lose 90 percent of its traffic overnight with Panda 4.1.
The site that was generating $200,000 per month could lose $140,000 per month in advertising revenue due to the Panda hit. If that’s the case, then it would be left with only 30 percent of its original $200,000, which is just $60,000. Wow, that’s a huge loss, right? I’ve seen this scenario many times during my Panda work (to various levels). It’s ugly and causes massive amounts of stress for everyone involved.
panda-advertising-drop

The Sinister Surge Doesn’t Help… That’s Why It’s "Sinister"

Another phenomenon that upsets the Panda balance is the sinister surge in traffic prior to an algorithm hit. I wrote about this disturbing situation after seeing it many times since February of 2011 when Panda first rolled out.
Google ends up dishing out more and more organic search traffic, even when there are problems on the site engagement-wise. That means that Google is getting even more engagement data during the surge, even when the site has serious problems. And if Google sees unhappy visitors in aggregate, then Panda can stomp all over the site. I’ve seen it a thousand times.

Warning: Important Point Ahead…Pay Attention

So, you have a surge in visits from Google organic and many of those users are experiencing deceptive or aggressive ad tactics. Both marketers and the ad team often mistakenly believe the surge is a good thing, since they aren’t familiar with Panda. Then boom, the wave crashes, and takes a huge portion of those visits with it (including ad revenue). Then you’re left with serious questions, stress, and confusion. And all of this can happen overnight by the way. Not good.
panda-advertising-surge

Advertising Problems and Panda - What I’ve Seen

While helping Panda victims, I’ve come across some glaring advertising issues that cause serious engagement problems. I thought it would be important to list some of them below so you can better understand what I’m referring to. I already mentioned a few above, but I’ll list them below for clarification purposes. Note, these are not the only ad problems that are being employed across the Web. They are simply some of the most common issues I have come across.

Full-Screen Floating Ads (aka Overlay Ads)

If you are employing full-screen ads that take over a user’s entire browser window, then you need to understand a few things from a Panda standpoint. Users hate them, so be very careful when you trigger full-screen floating ads and how often you employ them per session. The more people that get annoyed by takeover ads and then jump back to the search results, the more bamboo you are building. Engagement drops, dwell time is low, and you are sending horrible signals to Google about user happiness.
A mockup of an ad overlay:
panda-advertising-overlay2
If you do employ full-screen floating ads, then make sure users can exit out of the takeover and that’s it very clear how they can exit. During some audits, I found myself extremely frustrated being forced to watch a full-screen ad (which I would never normally do by the way). Full-screen ads that literally take over my screen, don’t let me exit, etc. annoy the heck out of me. And many others feel the same way.

Auto-Play Video Ads (or Audio Ads)

There’s nothing like hitting a Web page for the first time and immediately seeing a video trigger with audio. Most users frantically try to pause the video or at least mute the audio. I’ve seen ads like these on many Panda victim websites.
And there are times that I’ve seen multiple video ads on one page, and both have started playing! I wish I had video of myself trying to find, and then pause, multiple video ads at one time. Needless to say, employing autoplaying video or audio ads can kill engagement.
An example of an autoplaying video ad, plus other serious ad problems:
panda-advertising-video3
My recommendation is to make sure users trigger the video and/or audio. Do not autoplay those ads. Again, think about the user and what will drive strong engagement.

Roadblocks (Interstitials)

A roadblock is similar to a full-screen ad, but often redirects to you a different URL where an ad is displayed (in between page visits or even before the first page a user visits). Not only does this completely interrupt the user experience, but you are sending users to a different url automatically. Upon experiencing a roadblock ad, many users frantically try and return to the page they were on or to get through to the destination page. Roadblocks tend to anger a lot of people.
panda-advertising-roadblock2
If you are using interstitial ads, I can tell you that a distinct portion of your traffic is not enjoying the roadblocks you have in place. And there’s a chance that many of those users are popping back to the SERPs. And as I’ve mentioned before, low dwell time is something you want to avoid.

Blending of Ads With Content

During Panda audits, I have seen affiliate links and ads cloaked as content. They match the content so well in design, color, etc., that it’s hard to tell they are ads. But when you click them, you sure know they are…
Being transported to some random third-party site is not exactly what I had in mind after searching for a product, service, or solution. And some of those third-party sites are aggressive with their own tactics (and some even have malware problems, viruses, risky downloads, and more.)
panda-advertising-blended2
"Hell hath no fury like a user scorned." If you deceive users into clicking ads, then it will come back to bite you. And a Panda bite is worse than your typical animal bite. The pain can last for months (or longer). Do the right thing. Don’t deceive users. Stay out of the gray area of Panda.

Heavy Pagination (for Ad Impressions)

This isn’t as much deception as it is just a horrible user experience. Many publishers charge per impression (typically a CPM, or cost-per-thousand impressions). So, if you have 1 million impressions per day, breaking up articles into smaller pieces across a paginated set could yield 10 to 20 times the number of impressions. The ad team might run the numbers and push to do this.
And I’m here to tell you that excessive pagination can drive users crazy, while also yielding horrible engagement signals. I’ve seen the use of heavy pagination a lot during Panda work (and I’ve seen a serious uptick in sites employing this tactic get hit during Panda 4.0 and 4.1). I’m not sure if that signal was added to Panda recently, but I saw it a lot during my analysis.
38 pages of pagination:
panda-advertising-pagination3
And it contains a "view all" page, which would be great if the site didn’t force me to register to see it…
panda-advertising-pagination3-register
As a quick example, I’ve been helping a company that got pummeled by Panda (losing more than 60 percent of its traffic overnight). Upon analyzing the site, I noticed they were breaking up their articles into many small pieces (sometimes 10, 20, or 30 or more component pages). On desktop, it was painful to go through an article. Each component page only housed a paragraph or two of content. Then I had to click through to the next page, which of course loaded more ads. But desktop was a breeze compared to mobile. Trying to click through 30 component pages on your mobile phone will literally drive you insane…It was a horrible user experience.

Excessive Pagination - Possible Solutions

Each website is different, and there are several ways to tackle excessive pagination. You could simply migrate all content to one page (the best solution SEO-wise). You could also add a "view all" page and set that up properly SEO-wise – and not force people to register to see it! Then Google would surface that page in the SERPs. And then of course, you could add more content per component page and cut the pagination down by 50 to 75 percent. That’s not the best scenario, but better than providing 20 or 30 pages of pagination.

Low-Quality Supplementary Content

Supplementary content (used by Google in its Quality Rater Guidelines) is any additional content on your Web pages that’s not the core content on the page or ads. For example, you might be providing related articles, your right sidebar probably contains a lot of supplemental content, you might be employing content syndication links from Outbrain, Taboola, and others. And of course, some sites are stacking several content partners on their pages (adding even more supplementary content).
You need to be very careful with the quality of supplementary content and the amount of that content included on your website. Many users don’t know where that content will take them, and they are inherently trusting that clicking those links will be OK. But in reality, some of those links lead to ultra-low-quality pages. I’ve come across many examples of heavy sales landing pages, irrelevant content (based on the original article being viewed), and even some sites with malware and risky downloads.
And as mentioned earlier, supplementary content has made its way into Google’s quality rater guidelines. So yes, this is on Google’s radar for sure. Always think about your users, where you are sending them, and what type of experience they will have. If you can’t guarantee a positive experience, then don’t do it.
An example of supplementary content. Can you tell which links are external vs. internal?
panda-advertising-content-ads2

Fixing Advertising Problems After a Panda Hit

Once ad problems are identified, the solution is clear from my standpoint. Companies hit by Panda need to significantly cut back on their aggressive ad tactics. That means removing roadblocks, cutting down full-screen takeover ads, removing blocks of low-quality supplementary content, removing deceptive blocks of advertising, and more.
I explain to clients that they need to do this quickly, so users can start sending positive engagement signals to Google. I also make it clear that this can take a while (months). Some clients move fast to follow my recommendations, and they can often see recovery in a quicker timeframe. But then there are the companies that experience a civil war over advertising strategy.
For example, some ad teams might have sold through deals that they need to honor. But the problem is that there’s no traffic. So the ad team wants to monetize the remaining traffic even more. The marketing team (typically being guided by me), now understands Panda, how severe it can be, and how long recovery can take. They want to recover quickly, so they are ready to take action.
In my opinion, Band-Aids are not a long-term Panda recovery plan. Temporary recoveries can happen (as I documented in a recent case study). Avoid the Panda rollercoaster by making significant changes based on an audit. That’s how you avoid subsequent Panda visits.

A Final Note About Panda Recovery and Ad Tactics

When clients recover from Panda, I’m quick to explain a few key points. First, now is not the time to turn back on the ad fire hose! As I explained above, I have seen temporary recoveries. Panda rolls out frequently and if you add the problems back to your site that got you hit in the first place, then you are asking to be hit again. Panda is about long-term quality changes to your site. Don’t revert back to aggressive advertising tactics once you see a surge in traffic.
Second, now is also not the time to stop working on Panda remediation. My advice is to act like the recovery didn’t happen yet. Keep driving forward to fix the problems that were surfaced during the Panda audit. There’s an inherent gray area to Panda (and all algorithms). You want to get as far out of the gray area as possible. If you barely cross the threshold, you can get hit again. I’ve had companies reach out to me with rollercoaster Panda trending over the years. It’s maddening. Avoid that at all costs.

Summary: Understand Your Ad Problems… Because Panda Does

There’s a fine balance between simply providing advertising on your site and annoying the heck out of users to the point of insanity. From a Panda standpoint, it’s critically important that you don’t cause serious user engagement issues by employing aggressive or deceptive ad tactics. If you do, users will be unhappy, they will bounce off your site back to the SERPs, low dwell time will ensue, and Google will pick this up. And that’s a recipe for SEO disaster. Always think about user engagement. Panda does.