Is Google stuffing search pages with paid links? Senate hearing coming up on Wednesday...

Summary:Google chairman Eric Schmidt will appear before a Senate committee on Wednesday to defend the search giants agressive business tactics.

Google has adopted an aggressive program of stuffing its search pages with paid listings as the financial quarter draws to a close — a risky strategy as the US Senate holds hearings on its industry dominance.

Google's search pages are being flooded with paid search listings from its AdWords advertising network in the final weeks of the Q3 financial quarter, possibly to boost revenues to meet, or exceed Wall Street analyst estimates.

Aaron Wall, in a post on the web site SEOBook: "Endless AdWords Profits" notes that a search for "7 for all mankind" shows a massive AdWords box with ten links (his image below).

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10 links in a single AdWords ad unit!

Then more ads below it. Then a single organic listing with huge sublinks too. And unless you have a huge monitor at that point you are "below the fold."

...

While it is generally against Google's TOS for advertisers to double dip in AdWords (outside of the official prescribed oversize ad units highlighted above), Google is doing exactly that with their multitude of brands.

Google places a faint background color to distinguish ads from organic search but on some browsers and computers the background color is difficult to see, which means searchers can't tell what is a paid listing and what's not.

Moves such as these have helped Google greatly increase its revenues this year at the expense of its AdSense advertising network. AdSense revenues are split with other publishers but Google gets to keep 100% of its AdWords revenues.

On Wednesday Eric Schmidt, executive chairman of Google, will appear before a Senate committee that's looking into abuses of its dominant position in Internet commerce.

The Guardian reports:

[Schmidt] is expected to argue the company offers a level playing field for rival products — and is increasingly facing competition from social networking sites such as Facebook and Twitter.

...The Senate committee will also hear evidence from Google rivals, including Jeremy Stoppelman, chief executive of the reviews site Yelp, and Jeff Katz, chief executive of the price comparison site Nextag.

Larry Page, who returned to the CEO job in April, has managed to greatly boost Google's revenues this year partly by swamping search results with paid listings from AdWords.

GOOG Analysis: The Massive Mystery In Google's Finances And Why This Is Bad For Publishers - SVW

It also made a massive change in its algorithm to shift traffic away from content sites that it doesn't own. The shift is supposed to reward "quality content" but third party publishers such as HubPages report that they have done everything they can to fulfill Google's drive for higher quality content yet the Panda algorithm continues to penalize the site.

HubPages CEO On Google's Panda: SEO Doesn't Work - SVW

Google's aggressive push for revenues is a risky strategy because of the anti-trust scrutiny in the US and Europe. In addition to the Senate, Google is being investigated by the Federal Trade Commission and the European Union.

In the above search example, with only one organic, unpaid link showing "above the fold" amidst a sea of paid Google links, it will be difficult for Google to argue that it is not promoting its own business over that of others.

If the members of the Senate committee choose to question Mr Schmidt about the rise in Google AdWords links and the correspondingly scarce organic links, he'll have to come up with a better answer than pointing to Facebook and Twitter as worthy competitors.


Topics: Apps, Google

About

In May 2004, Tom Foremski became the first journalist to leave a major newspaper, the Financial Times, to make a living as a full-time journalist blogger. He writes the popular news blog Silicon Valley Watcher--reporting on the business of Silicon Valley.Tom arrived in San Francisco in 1984, and has covered US technology markets for leadi... Full Bio

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