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Googlenomics

kidmercury | 19 December, 2005 05:50

The Google ecosystem is changing significantly, and this has some very real economic consequences that Internet firms and business strategists need to consider.

Here's how it starts:

1. Their search algorithm is at a point where if you do not know SEO, it will be hard to get listed for your keywords. Perhaps more importantly, if you don't know SEO well, you still won't get listed -- or won't show up for a long time.

2. Advertising and Google's own vertical services are taking up more and more of the home page.

The effect of this?

1. It is harder for publishers to get their sites listed in Google; put another way, the cost of entering the Google network is rising, and is probably higher than ever before.

2. There is great opportunity for firms that can reduce this cost -- namely quality SEO firms. As demand for quality SEO rises, though, expect the cost for it to rise as well. (This will then create a demand for additional SEO supply, so if you're willing to make a bet on a few steps ahead, there could be a great opportunity in training people to become quality SEOs, or in being a place where people come to find quality SEO services).

3. If quality SEO services are at a higher price, then there may be demand in helping web publishers reduce this cost by sharing it. For instance, if company X and company Y are in the same industry, are entrants just looking to break in, and both are not sufficiently capitalized to find quality SEO to be cost-effective, they may choose to reconcile this dilemma by creating a third party site that serves as a portal of sorts to their industry, and hiring an SEO to help this site get ranked. This allows them to diversify the cost of SEO (and if done properly, could allow for some really interesting and potentially powerful optimization strategies).


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