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Yahoo! has announced that Jerry Yang will step down as CEO once his replacement has been found. Yang will remain on board as Chief Yahoo!

Yang became CEO in June 2007 at the request of the Board of Directors. Board Chairman Roy Bostock will lead the search for a new CEO. Here’s his official corporate-speak on the matter:

“Over the past year and a half, despite extraordinary challenges and distractions, Jerry Yang has led the repositioning of Yahoo! on an open platform model as well as the improved alignment of costs and revenues. Jerry and the Board have had an ongoing dialogue about succession timing, and we all agree that now is the right time to make the transition to a new CEO who can take the company to the next level. We are deeply grateful to Jerry for his many contributions as CEO over the past 18 months, and we are pleased that he plans to stay actively involved at Yahoo! as a key executive and member of the Board.”

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Changes are coming to the way AdWords calculates its Quality Score and Ad Rank. The changes will be implemented in the coming weeks.

First up, Quality Score will no longer take ad position into account. The idea is that simply dishing out the dough for a higher position has nothing to do with the quality of the ad.

CORRECTION: Here’s what Google really said: “To calculate the most accurate Quality Scores, it’s important that the influence of ad position on CTR be taken into account and removed from the Quality Score.” Bloggers have been pointing out that Google has been doing this. When I get further clarification from Google, I’ll let you know! Stay tuned.

Next, Ad Rank is going to focus on quality for ads that appear on top of the search results. Ads must meet a “quality threshold” in order to appear in that prime real estate. It will be possible for a lower positioned ad to jump above a higher position ad in the sidebar ads to hang out in the box above the organic results if it meets the threshold but the higher positioned ads don’t.

Clearly, Google is making quality a key focus in AdWords. This may be an attempt to improve the program in the midst of a slowdown in growth for paid search. Or it could be an attempt to show that Google is more concerned about quality than price - and therefore advertisers need not be worried about a little thing like a search advertising deal with Yahoo.

What do you think about the focus on quality? Let us know in the comments.

Related Reading:
Google Makes AdWords Site Stats Logo Optional
AdWords Editor Version 6.5 Released
AdWords Conversion Optimizer Releases New Eligibility Requirements
AdWords API Gets an Update and Extra Quota

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Google’s AdWords API team has released version 13 of the open source tool. The update includes the following:

• New geotargeting options
• Active campaign and ad group retrieval
• Campaign budget suggestions
• Quality-based bid and quality score support
• Mobile Image Ad support
• Easier MCC account hierarchy retrieval
• MCC Alerts support
• Search volume data returned in KeywordToolService
• Minimum bids no longer supported

For more on the updates, read the release notes:

AdWords API advertisers will also receive 20% more API units from now through January 15, 2009. Here’s how it works:

• All developers can purchase API units at the rate of 1200/$0.25, up from 1000/$0.25, from now through January 15th, 2009.
• Advertisers who are eligible for free API units will receive credit at the rate 300/$ of AdWords spend, up from 250/$ of AdWords spend. They will be credited the holiday bonus based on their spend in previous months.

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AdWords API Gets Local Database Sync Update
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Lawrence Lessig, a Professor of Law at Stanford Law School, will be giving the opening keynote at Search Engine Strategies Chicago on Monday, Dec. 8, 2008. The title of his keynote is “Remix: Making Art and Commerce Thrive in the Hybrid Economy.”

And, if you read the description of Professor Lessig’s keynote in the conference agenda, it says: “The content industry has convinced industry in general that extremism in copyright regulation is good for business and economic growth. That’s false. In this talk, Professor Lessig describes the creative and profitable future that culture and industry could realize, if only we gave up IP extremism.”

What is he getting at?

Well, “Remix: Making Art and Commerce Thrive in the Hybrid Economy” also happens to be the title of Professor Lessig’s new book, which just went on sale on Amazon.com.

And, according to the editorial reviews on Amazon.com, “The author of Free Culture shows how we harm our children — and almost anyone who creates, enjoys, or sells any art form — with a restrictive copyright system driven by corporate interests. Lessig reveals the solutions to this impasse offered by a collaborative yet profitable ‘hybrid economy’.”

It goes on to say that Professor Lessig, who is the reigning authority on intellectual property in the Internet age, “spotlights the newest and possibly the most harmful culture war — a war waged against our kids and others who create and consume art.” It adds, “America’s copyright laws have ceased to perform their original, beneficial role: protecting artists’ creations while allowing them to build on previous creative works. In fact, our system now criminalizes those very actions.”

How does it do that? Well, Professor Lessig argues that “biting” riffs from films, videos, or songs shouldn’t be crimes. Why? It makes felons out of some of today’s most talented artists.

Professor Lessig argues that the way to end this war is to embrace what he calls the “read-write culture,” which allows its users to create art as readily as they consume it. And he can already see glimmers of a new hybrid economy that combines the profit motives of traditional business with the “sharing economy” evident in such websites as Wikipedia and YouTube.

Wow. That’s strong stuff. And, if we play buzzword bingo at SES Chicago 2008, then there are a couple arcane business concepts that we can use on our bingo cards.

But, this short blurb may not do justice to Professor Lessig. So, I emailed him some questions about the topic of his opening keynote. And he emailed me his answers — quickly, I might add.

Here is our Q&A:

Q: Who benefits and who is harmed by extremism in copyright regulation?

A: Benefits: Lawyers (certainly). The record companies (maybe). Harmed: Artists, businesses, consumers — and a generation of (criminalized) kids.

Q: What are the “read-write culture” and the “hybrid economy”?

A: A RW culture is one where ordinary people are empowered to participate in the creation and recreation of their culture. Every culture in human history has been RW, save for a few dark years in the 20th century.

A hybrid is a commercial entity that tries to leverage value out of a sharing economy, or a sharing economy that tries to use a commercial entity to support it. Either way, two radically different cultures need to learn how to work together with each other.

Q: When will this war on our kids stop, the “read-write culture” be reborn, and the “hybrid economy” start to flourish?

A: When policy makers are woken up to the extraordinary cost this war is imposing.

Q: Where can we already see glimmers of a new “hybrid economy” that combines the profit motives of traditional business with the “sharing economy”?

A: I think everywhere around us. All of the interesting Internet businesses today are hybrid: Flickr, Second Life, Yelp!, even Amazon builds much of its business from the sharing activity of its customers.

Q: Why is IP extremism bad for business and economic growth?

A: Practice moderation. When the lawyers in the room start insisting that the licenses you create must impose perfect control over everything you have, ask them to prove it. Ask them to demonstrate that the business return from that relationship of antagonism is higher than its cost. Don’t give over your business’ future to those who don’t think like a business man or woman. Keep focused on the only undeniable truth: IP is an asset. Like any business asset, it should be deployed to maximize the value of the corporation.

Let me add that I’ve watched the 19-minute-long video of Professor Lessig speaking at last year’s TED Conference as well as the 4-minute 35 second video from OpenSourceCinema which is embedded below. So, I am confident that he will rock the house at Search Engine Strategies Chicago.

Lessig Remix

Professor Lessig was also named one of Scientific American’s Top 50 Visionaries, for arguing “against interpretations of copyright that could stifle innovation and discourse online.” He’s on the board of the Creative Commons project has served on the board of the Electronic Frontier Foundation. He was also a columnist for Wired, Red Herring, and the Industry Standard.

In other words, he’s a speaker worth coming to SES Chicago to hear. And, yes, I do think I’ll put some of his arcane business concepts on a buzzword bingo card.

Google and Yahoo are attempting to avoid an antitrust lawsuit by working with Department of Justice on their search advertising partnership, according to the Wall Street Journal.

Details are vague, but the search engines are willing to put extra measures in place per negotiations with the DOJ in order to get the deal to go through.

Google and Yahoo have already delayed the implementation of the advertising deal, after going on offense in August and September about going through with the deal in October no matter what.

Related Reading:
Senator Kohl Wants Oversight of Google-Yahoo Deal
Yahoo Also Launches Site Defending Search Ad Deal with Google
Yahoo’s Sue Decker Weighs In on the Defense of the Search Ad Deal with Google
Google Launches Facts Site About Yahoo Search Ad Partnership
To Fear or Not to Fear: That is the Question (About the Google-Yahoo Ad Deal)

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Ok, this is isn’t search related, but it’s too much fun not to cover. Gmail has released another Labs feature. This one is called Mail Goggles and it’s intended to help you avoid sending those late night or weekend emails that you’ll regret later.

When the feature is enabled, you have to answer simple math problems before an email will send during those most vulnerable emails-I-will-later-regret times.

Of course, if you’re having a perfectly sane moment but math isn’t your strong suit, you’ll need to break out your trusty calculator (or enter that math problem into Google search).

But at least now there’s technology that has your back in those weak moments.

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