Facebook’s Panda Update
So far this year publishers have lost 52% their Facebook distribution due to:
- increased ad load (another record quarter for Facebook!!!)
- shifting of the news feed "relevancy" algorithm toward friends
- promotion of new formats, like live video (if they subsidize it with direct payments, they're also algorithmically subsidizing its distribution)
Instant Articles may have worked for an instant, but many publishers are likely where they were before they made the Faustian bargain, except they now have less control over their content distribution and advertising while having the higher cost structure of supporting another content format.
When Facebook announced their news feed update to fight off clickbait headlines, it sure sounded a lot like the equivalent of Google's Panda update. Glenn Gabe is one of the sharpest guys in the SEO field who regularly publishes insightful content & doesn't blindly shill for the various platform monopolies dominating the online publishing industry & he had the same view I did.
Further cementing the "this is Panda" view was an AdAge article quoting some Facebook-reliant publishers. Glad we have already shifted our ways. Nice to see them moving in the same direction we are. etc. ... It felt like reading a Richard Rosenblatt quote in 2011 about Demand Media's strong working relationship with Google or how right after Panda their aggregate traffic level was flat.
Peter Kafka: Do you think that Google post was directed at you in any way?
Richard Rosenblatt: It’s not directed at us in any way.
P K: they wrote this post, which talks about content farms, and even though you say they weren’t talking about you, it left a lot of people scratching their heads.
R R: Let’s just say that we know what they’re trying to do. ... He’s talking about duplicate, non-original content. Every single piece of ours is original. ... our relationship is synergistic, and it’s a great partnership.
Kara Swisher: What were you trying to communicate in the call, especially since investors seemed very focused on Panda?
R R: What I also wanted to show was that third-party data sources should not be relied on. We did get affected, for sure. But I was not just being optimistic, we wanted to use that to really understand what we can do better.
K S: Given Google’s shift in its algorithm, are you shifting your distribution, such as toward social and mobile?
R R: If you look at where trends are going, that’s where we are going to be.
K S: How are you changing the continued perception that Demand is a content farm?
R R: I don’t think anyone has defined what a content farm is and I am not sure what it means either. We obviously don’t think we are a content farm and I am not sure we can counter every impact if some people think we are.
A couple years later Richard Rosenblatt left the company.
Since the Google Panda update eHow has removed millions of articles from their site. As a company they remain unprofitable a half-decade later & keep seeing YoY media ad revenue declines in the 30% to 40% range.
Over-reliance on any platform allows that platform to kill you. And, in most cases, you are unlikely to be able to restore your former status until & unless you build influence via other traffic channels:
I think in general, media companies have lost sight of building relationships with their end users that will bring them in directly, as opposed to just posting links on social networks and hoping people will click. I think publishers that do that are shooting themselves in the foot. Media companies in general are way too focused on being where our readers are, as opposed to being so necessary to our readers that they will seek us out. - Jessica Lessin, founder of TheInformation
Recovering former status requires extra investment far above and beyond what led to the penalty. And if the core business model still has the same core problems there is no solution.
"I feel pretty confident about the algorithm on Suite 101." - Matt Cutts
Some big news publishers are trying to leverage video equivalents of a Narrative Science or Automated Insights (from Wochit and Wibbitz) to embed thousands of autogenerated autoplay videos in their articles daily.
But is that a real long-term solution to turn the corner? Even if they see a short term pop in ad revenues by using some dumbed-down AI-enhanced low cost content, all that really does is teach people that they are a source of noise while increasing the number of web users who install ad blockers.
And the whole time penalized publishers try to recover the old position of glory, the platform monopolies are boosting their AI skills in the background while they eat the playing field.
The companies which run the primary ad networks can easily get around the ad blockers, but third party publishers can't. As the monopoly platforms broadly defund ad-based publishing, they can put users "in control" while speaking about taking the principle-based approach:
“This isn’t motivated by inventory; it’s not an opportunity for Facebook from that perspective,” Mr. Bosworth said. “We’re doing it more for the principle of the thing. We want to help lead the discussion on this.” ... Mr. Bosworth said Facebook hasn't paid any ad-blocking software company to have its ads pass through their filters and that it doesn’t intend to.
Google recently worked out a deal with Wikimedia to actually cite the source of the content shown in the search results:
it hasn’t always been the easiest to see that the material came from Wikipedia while on mobile devices. At the Wikimedia Foundation, we’ve been working to change that.
While the various platforms ride the edge on what is considered reasonable disclosure, regulatory bodies crack down on individuals participating on those platforms unless they are far more transparent than the platforms are:
Users need to be clear when they're getting paid to promote something, and hashtags like #ad, #sp, #sponsored --common forms of identification-- are not always enough.
The whole "eating the playing field" is a trend which is vastly under-reported, largely because almost everyone engaged in the ecosystem needs to sell they have some growth strategy.
The reality is as the platform gets eaten it only gets harder to build a sustainable business. The mobile search interface is literally nothing but ads in most key categories. More ads. Larger ads. Nothing but ads.
And a bit of scrape after the ads to ensure the second or third screen still shows zero organic results.
And more scraping, across more categories.
What's more, even large scaled companies in big money fields are struggling to monetize mobile users. On the most recent quarterly conference call TripAdvisor executives stated they monetize mobile users at about 30% the rate they monetize desktop or tablet users.
What happens when the big brand advertisers stop believing in the narrative of the value of precise user tracking?
P&G two years ago tried targeting ads for its Febreze air freshener at pet owners and households with large families. The brand found that sales stagnated during the effort, but rose when the campaign on Facebook and elsewhere was expanded last March to include anyone over 18.
P&G’s push to find broader reach with its advertising is also evident in the company’s recent increases in television spending. Toward the end of last year P&G began moving more money back into television, according to people familiar with the matter.
For mobile to work well you need to be a destination & a habit. But there is tiny screen space and navigational searches are also re-routed through Google hosted content (which will, of course, get monetized).
In fact, what would happen to an advertiser if they partnered with other advertisers to prevent brand bidding? Why that advertiser would get sued by the FTC for limiting user choice:
The bidding agreements harm consumers, according to the complaint, by restraining competition for, and distorting the prices of, advertising in relevant online auctions, by reducing the number of relevant, useful, truthful and non-misleading advertisements, by restraining competition among online sellers of contact lenses, and in some cases, by resulting in consumers paying higher retail prices for contact lenses.
If the above restraint of competition & market distortion is worth suing over, how exactly can Google make the mobile interface AMP exclusive without earning a similar lawsuit?
AMP content presented in the both sections will be “de-duplicated” in order to avoid redundancies, Google says. The move is significant in that AMP results will now take up an entire phone screen, based on the example Google shows in its pitch deck.
Are many publishers in a rush to support Google AMP after the bait-n-switch on Facebook Instant Articles?