Google Ranking Algorithm - A Sneak Peek into their Change Process

Online marketers, primarily those that breathe and live Google woke up to a small surprise in the form of a video released by the search engine giant. The video did not reveal how Google actually ranks websites as many news publications out there might be eluding to. It does however confirm how frequently Google updates it's search algorithm and the procedures they take before releasing these updates to the public.

Amit Singhal confirmed that "just last year, we launched over 500 changes to our algorithm. So by some count we change our algorithm almost every day, almost twice over". Scott Huffman, Google Engineering Director, continues by stating that they "analyse each potential change very deeply to try to make sure that it's the right thing for users". He adds, "In 2010, we ran over 20,000 different experiments. All the data from the human evaluation and the live experiment are then rolled out by a search analyst".

This video discusses how Google identifies, tests, and implements tweaks to their algorithm in their quest to server it's users with the best content that they are searching for. As an example, the video then looks at the reasoning and test procedures that affected the "did you mean" and "showing results for" change earlier this year.

Watch the entire video below.

How often do you "google" ?... and see adwords

How often do you 'Google' each week?

Strangely, a hard question to answer specifically, as these things are shrouded in commercial mystery. However I think we can safely answer "a great deal" as there are global statistics that point to over 3 billion searches per day! Last year(1)
Almost all of these searches are accompanied by a series of paid advertisements, aka AdWords. These are the online advertisements we see wrapped on the top and right hand side of each Google search. However did you know AdWords are everywhere online. Keep your eyes open and you'll see them on third party websites, inside emails on maps and mobile phones and even on YouTube videos.
Though there are only a small amount of businesses that are represented in AdWords listings In Australia only about 1% of businesses use Adwords campaigns. Most of these are big businesses and interestingly businesses mostly based outside of Australia. See the image below, no local results for a very popular search term.

We at OI often wonder why so many businesses don't see the opportunities to advertise in the Adwords platform space. The statistics are clear; people are spending more and more time online every month, they are searching for products and services more and more. They are reading newspapers and watching broadcast TV less and less. Yet advertisers are failing to see the opportunities online. The Australian Financial Review this week put a focus on these AdWords in an article 'Click here for top dollar'.
Are Aussie businesses technology averse? We don't think so.

We think that most Aussie businesses are simply unconvinced that these AdWords and related DisplayAds are working alternatives to print media. We also think that setting up an Adwords campaign is actually quiet complex and very time consuming for what they may or may not receive. Fair cop we reckon.

Remember AdWords are a so called PPC or Pay Per Click system, where the customer agrees on a click maximum limit (say 10 cents) and a per month maximum PPC spend. Inside these constraints you compete in an automated auction with other advertisers in your chosen location and industry sector for AdWords placements.
There are a host of other options that in theory let you target age groups, gender, income levels and even street level focusing. There are also options that include inclusion on maps, email, YouTube channels and third party websites, such as industry or popular news websites.
Coming up with the 'creative' text is also an art, as well worded ads attract many more clicks than poorly worded ones.

OI has been working on this for some time and has recently just been accepted as a Google Engage Partner, something that helps educate us on the ins and outs of advertising in the online space. We recently attended the inaugural partner event at Google Australia HQ. I'm pleased to say there was very little sales pitch and a lot of education and learning around the products and services. Something that we can now pass onto our clients and partners. Expect to see a heap more targeted advertising in the AdWords space very soon.

Yours in AdWordising

The OI Team

References
1. These are comscore worldwide estimates in 2010 source: SearchEngineLand