The Importance of Place: What kind of marketing strategies are likely to develop based on location tracking info?

In the final week of October, 2010, Google overhauled the way that they “organize the world’s organization,” giving place a new centrality as a factor determining how their search engine ranks websites and presents Search Results for consumers.  Having merged place results with organic search results, red ‘place balloons’ started appearing below listings, rather than being cordoned off in their own section, which meant that organic Search Results and Place information associated with sites were being measured as two parts of a unified whole.  This allowed local businesses to become relevant on searches entered by local users in a new way.

Last month, there were a string of revelations about location-tracking on smart-phones, the most dramatic of which involved Google’s phone—the Droid.  The Wall Street Journal summarized the kernel at the center of the snafu succinctly, reporting that, “Android phones collect[ ] [their] location every few seconds and transmit[  ] the data to Google at least several times an hour…also transmit[ing] the name, location and signal of any nearby Wi-Fi networks as well as a unique phone identifier

For the purposes of this post we won’t allow the question of whether these evolving prongs of Google’s strategies are connected [they are], or by what kinds of privacy concerns these developments raise [certainly there are legitimate concerns along these lines].  Instead, let’s talk in term of logistics: what does this new centrality of place mean for the average person?

We’ll assume that, at this point, the ‘average person’ owns a smartphone and searches Google for their quotidian informational needs on a regular basis.

What exactly does it mean when we read that…

Android phones collect their location every few seconds, transmitting the data to Google several times an hour, also transmitting the name location and signal of any nearby Wi-Fi networks as well as a unique phone identifier.

Here’s the breakdown:

  • The unique phone identifier sent along with your information is like your name-tag. It may (or may not) allow your location-info to be collated with your location-history.  That means your daily patterns of movement, and your proclivities for certain geographical areas and locations would gradually emerge from the data-set, revealing your inclinations and possibly allowing Google to construct a new kind of consumer profile of you—based on axes like:
    • Where are you now?
    • Where are you likely to be tonight or tomorrow?
    • What do consumers who frequent these areas (whether they are Wal-marts or Bar crawls) like?
    • Potentially, at some point, this means that if you visit your city’s bar crawl so many nights per week or per month, you’ll become the recipient of more aggressive marketing of drink specials in that area.  If you are a frequent visitor to Wal-mart, Wal-mart will find new ways of communicating sales to you in remarkably timely ways.
  • When we read that, “Android phones collect their location every few seconds, transmitting the data to Google several times an hour, also transmitting the name location and signal of any nearby Wi-Fi networks,” this means that—potentially— your location is available for marketing purposes in real-time. Any business that has a Wi-Fi network (which is virtually everyone these days) may eventually be able to reach out to you when you’re passing by their storefront, or on their street.  A shipping quote might be automatically generated to deliver products to you wherever you are.  Furthermore if you enter a business—especially if you enter it more than once— Google will be able to correlate your interest in that business and its product, and integrate that information into your ‘consumer profile.’  Potentially.

I keep writing, “potentially this” and “potentially that.”  At the moment, both Google and Apple are denying that that they’re using the location information for any such purpose.  But the fact is that they almost certainly will, eventually.

There is nothing particularly new about this trend in marketing strategy.  Your IP address already informs your search results.  If you live in Indianapolis, when you search for ‘florists’ your search results will automatically include florists in Indianapolis.  The new Place functionality that Google rolled out last fall was a way to extend the specificity and accuracy of this aspect of search.  As far as I know, there is no such thing as ‘pure’ or ‘objective’ global search results.  All search results are geographically contingent.  The momentum that’s been built up around place in the past six months or so would seem to imply that they will become more so.

This will be a good thing for local businesses and, to some extent, for the consumer.  Businesses and consumers will be able to communicate in ever more efficient and effective ways.  The downside involves the presence of more marketing noise in our lives.

Do you remember when you first got a cellphone and suddenly discovered the irritation of never ever being unavailable?  But then on the other hand, how could we live without our cellphones in this day in age?  They expedite virtually all of our professional and personal activities.

The new marketing functionality likely to be developed around location-tracking will probably become annoying and indispensable in some of the same ways.

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Contextual Links Still Matter

In the topsy-turvy world of trying to keep up with Google’s algorithmic changes, it can be hard to know exactly what will help your website gain traction in the SERPs. When you throw the other major search engines into the mix, things only get murkier. True, the secondary search engines generally follow Google’s lead, but there is a rising desire among them to break from the ranks and do things their own way. In their eyes, this autonomy is the only way they’ll ever distinguish themselves from the competition and survive in the competitive world of search engines.

One strategy that still carries a lot of weight with Google and the other search engines is creating contextual links. These links get their name from the fact that they are in context with their surroundings. So if an entrepreneur owns a website that sells duck decoys, links to their site would be in context on a hunting blog.

When you can get contextual links on a popular site, the search engines take note. When those links are clicked by readers of that site, all the better. Your association with such a strong entity benefits your site immensely. In this way, link building becomes a game of quality, rather than quantity. While there are services that will claim they can get thousands of links for your site, they are usually dealing with rubbish. You are better off seeking strong links with respected sites.

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Study: Most Tax Cheats Have a Lot in Common

In 1789, Benjamin Franklin wrote in a letter that “Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.”

But in today’s age of entitlement and government distrust, people are questioning just how certain taxes really have to be. That question has led to a lot of cheating, and one group is overwhelmingly more apt to cheating than others.

According to CNN Money, a survey by DDB Worldwide Communications group revealed that most American tax cheats are male, single and under 45. Not many people admitted to cheating—only about 15 percent of people surveyed—but 64 percent of self-proclaimed cheaters were male. Forty-seven percent were single, widowed or divorced and more than half were under 45.

The study further revealed that people who cheat on their taxes feel justified in cheating in other areas of life. In the survey, many said they worked a job they didn’t report on their taxes, would keep extra change from a cashier, would wear clothing only once before returning it and would even steal from a child’s piggy bank.

The interesting thing about this study is that many of these cheaters reported that they feel they are special and deserving of such treatment. In comments on the CNN article, many people mentioned dishonesty at the federal level or from big businesses, implying that corporations’ unethical behavior somehow justifies their own dishonest practices.

In short, two things are basically true when it comes to taxes. First, people cheat. And second, they only get in trouble if they get caught. The IRS handles so many cases every year that they can’t possibly audit everyone, but when people cheat on their taxes, they ultimately cheat their neighbors and friends. Sure, the government doesn’t always spend money exactly the way we would like. And no, not everyone pays what they should. But taxes pay for public education, roads, law enforcement, the postal service and other public services, and when one person doesn’t pay taxes, everyone else has to cover for it.

For most people, a sense of duty or desire to be honest is motivation enough to get them to pay what they owe. We at PMI believe in being honest in our financial endeavors and in giving back even more through charitable contributions.

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How Brands Get Molded into Our Brains

Like the mind, a brand is a terrible thing to waste. That’s because a well-developed brand can leave an indelible mark on the brain, influencing reactions and emotions without the consumer ever realizing it.

While we necessarily fully understand all the physiological reasons that a brand can have such an impact on our minds and motives, we are sure that it happens. For instance, there was a study done where children were offered two identical hamburgers – both from McDonald’s – except one hamburger was wrapped in plain wrappers while the other was presented in its normal branded wrapper (with the McDonald’s logo and golden arches). The children preferred the branded hamburger, some even saying it tasted better. The study also showed that 76 percent of the children preferred “McDonald’s” fries and “McDonald’s” chicken nuggets.

There’s an instant emotional response to seeing a logo or brand, and that response is based on everything that’s preceded it. This is why some individuals may actually have a negative reaction to a specific brand – like if they’ve had bad personal experiences with the company or if the company is involved in less-than-reputable dealings or if the company’s CEO kills elephants.

And it’s almost impossible to reverse that impact – either positively or negatively. For instance, there are plenty of people who have seen the film Super Size Me – many of whom may have been disgusted by what they saw – who continue to eat at McDonald’s (or other fast food restaurants). Whether it’s because the McDonald’s brand has been established so strongly or because of their indifference toward what they saw in the movie, the points brought up in the film weren’t enough to dissuade them from eating there.

So when you’re building your business and promoting your brand, you’re doing more than just advertising or marketing. You’re exploring the psychological impact a message, an image, or a logo can have on an individual.

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PMI Charitable Contributions Update

Here at Professional Marketing International, giving back is part of who we are. We believe in supporting good causes and use our resources to make our community and the world a better place. We are only three months into 2011, but our philanthropic efforts are already in full swing. Here’s an update on what we’ve been up to.

Diabetes Research Institute Foundation
This January, PMI made a donation to the Diabetes Research Institute. It is one of the world’s leading diabetes research institutes and is known for translating new findings into practical solutions for diabetes patients everywhere. The Diabetes Research Institute is committed to finding a cure for diabetes, which affects about 25 million Americans.

The Road Home
Especially with the recent downturn in the housing market, many people are finding themselves without somewhere to sleep. The Road Home is a private organization that helps Utah’s homeless by providing them with resources that help them become self-sufficient. PMI made a contribution to the organization in January, helping them continue the great work they are doing.

House of Hope (via Girl Scouts of America)
As the Girl Scouts of America began their annual cookie sales this February, PMI teamed up with them for a service project benefiting the House of Hope. PMI bought several boxes of cookies that the girls delivered to House of Hope, an organization in Utah that provides treatment for people who struggle with addiction to drugs or alcohol. PMI was happy to help the Girl Scouts in their endeavor to bless other people’s lives.

Northland Early Education Center
Every year, PMI contributes to The Northland Early Education Center in Kansas. The organization provides therapy and quality early education for children with special needs as well as those who are developing typically. The organization helps prepare young children for success in school.

Areté Gymnastics, LLC
Supporting individuals can be just as rewarding as supporting entire organizations. A teenage boy from Utah, JJ Litster, is a talented gymnast who competes across the nation and is working toward qualifying for the 2016 Olympic Summer Games. JJ is a 4.0 student who works hard in school, at home and in the gym, but travel costs are expensive. PMI is happy to support JJ as he works toward his goals.

C. H. Robinson Cystinosis Research Network
Every year, PMI makes a donation to the C. H. Robinson Cystinosis Research Network. This organization helps 2,000 children who are dealing with cystinosis every year. Cystinosis is a genetic disease that can result in kidney failure at about nine years of age if left untreated, but treatments are available thanks to the work of organizations like the C. H. Robinson Cystinosis Research Network.

Read Across America
On March 2, PMI helped a local school with its celebration of Read Across America (held, fittingly, on Dr. Seuss’ birthday). Read Across America is a national celebration of reading, usually characterized by readathons, games, treats and a lot of storytelling. PMI helped Lehi Elementary School celebrate by purchasing several books for their library and supplying Cat in the Hat cookies for all students. We also supplied volunteers to read to several classes and play games with kindergartners.

Golden Spike Outreach
Golden Spike Outreach is an organization that helps individuals thrive after being released from prison. PMI made a contribution to the organization in March 2011 after an e-mail error caused Golden Spike to miss a deadline for an important grant. Golden Spike Outreach helps those who have been in prison break cycles of addiction, qualify for jobs and reunite with their families, and PMI is happy to help them continue their work until another grant can be obtained.

Lehi Round-up Celebration
PMI headquarters are in Lehi, Utah, and we believe in contributing to our community. Though it is still some time away, PMI has committed a charitable contribution to Lehi’s Round-up Celebration this summer. PMI is sponsoring a family movie night in June, complete with an outdoor movie screen and discounted snacks to allow local families to enjoy the summer night together.

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Clean Your Home Office to Increase Productivity

Keeping your home office clean can help you increase productivity and grow your online business.

Image by Benjamin Thompson.

Greek philosopher Plato once said, “In order to seek one’s own direction, one must simplify the mechanics of ordinary, everyday life.” Everyday life today is drastically different than it was in Plato’s time, but his words of wisdom are timeless. Simplifying everyday tasks is the key to reaching your business goals, and keeping a clean home office is one of the best ways to do so.

But keeping the room clean is only part of the solution. The best home offices are also organized, with all the tools you need to run your business available when you need them but out of the way when you don’t. Help your business grow by using these tips for keeping a clean, organized home office.

  1. Designate a place for everything. Most of the clutter on your desk is probably only there because it doesn’t have anywhere else to go. If your work requires a lot of paper, create a filing system to keep all your papers under control. Home office organization furniture can help you keep everything else in order; a bookshelf is great for utilizing a room’s vertical space and can give you a great place to keep project folders, books and knickknacks.
  2. Put equipment where you can use it. When deciding where to put large office equipment, it’s tempting to try to hide it away. But that can decrease productivity and make your home office harder to work in. If you print things often, keep your printer connected to your computer all the time and put the paper where you can easily find it. Keeping things where they’re usable will increase productivity.
  3. Give yourself some elbow room. It’s convenient to keep things at your fingertips, but having too many things close to you hampers productivity. Keep office supplies away from your mouse and keep your phone arm’s length away from you. Having more room to move around will help you feel less stressed and concentrate on the tasks at hand.
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What’s New at PayPal?

PayPal has been in the news recently for various reasons.

Image by epSos.de

PayPal has actually been in the news quite a bit over the past few weeks. Here’s a recap:

  • PayPal, which is a subsidiary of eBay, is hoping to avoid a cap on the fees they charge. The Federal Reserve is discussing the option of placing a cap on interchange fees – or the fee for using a debit card. Currently, merchants pay about 1 percent of the purchase, but Congress is contemplating capping that fee at somewhere between 7 and 12 cents per swipe. PayPal feels they don’t fit the traditional debit-card model and should be able to maintain their current charge rates.
  • Phishing continues to catch many people online as they unknowingly give away their private information. PayPal and Facebook are at the top of the list of most phished domains.
  • Lastly, one of PayPal’s vice presidents – Osama Bedier – is leaving for Google. He had been with the company since 2003, but will be undertaking new projects with a new company. His replacement will be PayPal employee Matthew Mangerink.

But all in all, PayPal still seems to be at the head of the online merchant industry. And even though their services were disrupted during the denial-of-service attacks surrounding Wikileaks last December, it doesn’t look like the business isn’t going anywhere.

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What’s blekko?

blekko.com is taking on Google.blekko.com is one of the newest challengers to Google’s crown, and they are going straight for the jugular. Their main avenue of attack? Trying to convince the public that spam has rendered Google obsolete. To this end, they have posted a spam clock which claims to track the number of spam sites created since January 1, 2011. In case you’re wondering, the tally currently stands well over 255 million. 

The folks at blekko make an excellent point – spam is a serious problem that is only getting worse. For example, according to Microsoft’s estimates, up to 90% of the emails sent through their service are spam! But is spam really crippling Google’s effectiveness? And can blekko boast better results? 

The internet experts at PMI Education have their doubts. blekko’s spam counter has received a lot of press, but it suffers a major problem right out of the gate – there’s no science behind it. When blekko’s CEO proudly announced the counter on his blog, he included the caveat that, “While it is illustrative more than scientifically accurate, it is truly indicative of the soaring spam problem.” There are undoubtedly millions of spam pages being created each month, but to create a pinpoint tally device that is essentially just running on broad estimates is slightly disingenuous. 

The bigger question is whether blekko can produce cleaner, more relevant results than Google. That is yet to be seen. But one thing is certain – they have no qualms telling you they can.

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Google CEO to Step Down

Google CEO Eric Schmidt will step down and co-founder Larry Page will take his place effective April 4.

Image by World Economic Forum

We at Professional Marketing International know the importance of helping you keep up on industry news, and what happened yesterday could have far-reaching affects for search engine optimization.

News that Eric Schmidt will be stepping down as Google’s CEO took many by surprise, but a statement on the company’s blog explains the decision. Schmidt says they hope the restructuring at the top of the company will speed up decision making and provide “clear responsibility and accountability at the top of the company.”

Effective April 4, co-founder Larry Page will take over as CEO and Schmidt will become Google’s executive chairman. Co-founder Sergey Brin will spend his time developing new products.

The change is intended to simplify Google’s corporate leadership. Titles notwithstanding, a trio of bosses has run the company for years. Schmidt, Page and Brin collaborated on important decisions and worked together to run the company. While this setup had its advantages, it was difficult to determine who was ultimately responsible for decision making. Schmidt, Page and Brin say they will continue to consult each other on important decisions but hope the restructuring will help the company run more smoothly.

Schmidt oversaw Google’s incredible growth from an $86 million company when he joined in 2001 to a $30 billion enterprise in 2010. As Page said in a statement, “There is no other CEO in the world that could have kept such headstrong founders so deeply involved and still run the business so brilliantly.”

Business savvy notwithstanding, Schmidt was known for his strange, funny and sometimes downright creepy quotes. There is speculation on the reasons for the change, with some saying it has been rumored for months. But whatever prompted Schmidt to step down, he is confident that Page can effectively lead Google as it moves forward.

“I am enormously proud of my last decade as CEO, and I am certain that the next 10 years under Larry will be even better,” Schmidt said on the Google blog. “Larry, in my clear opinion, is ready to lead.”

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Happy New Year!

Wishing you a successful new year from PMI!

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