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On Sunday, Web Guild spread fear around the internet by ‘exposing’ Google’s quiet layoffs, which were said to be upwards of 10,000 employees. And Google was supposedly getting away with it through secretive loopholes that only corporate lawyers know about. They were hiring workers and not paying them benefits.

Actually, those people are called independent contractors and they knowingly enter into those agreements.

Google is reducing its contractor workforce, but it’s something they’ve had planned for a long time. Of course, the timing of implementation couldn’t be worse. Especially since contractors generally don’t get unemployment benefits once terminated. Independent contractors are essentially self-employed.

Related Reading:
Google Q3 Revenue Increases 31% Year-Over-Year, Up 3% Over Q2 2008
Google Pulls the Plug on Lively

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New Article - Google Adsense: A Great Tool for Webmasters Posted By : [...]

Seems legendary investor George Soros, who supposedly made a billion dollars trading on the foreign currency exchange, will have some competition from Google as they are now hedging against fluctuating currency exchange rates by investments in the forex market.

Cnet reports that Google has invested over $80 million dollars in forex trading hedges to offset the strengthening dollar against the global currencies many of their advertisers are paying them in.

Given that 51% of Google’s revenue comes from outside the United States, many large advertisers are given credit in their own currency which could be worth less at the time they actually pay Google.

The value of the US dollar against the euro, Canadian dollar and the British pound has increased substantially in recent weeks, thus Google gets less US dollars when someone pays them. The actual value of the clicks is done in US dollars at the base of the calculations, so Google advertisers get to pay less than what they would if there was just one currency used in the actual bidding.

Maybe the brothers Google want to emulate Soros who was part of the Google Author series that had CEO Eric Schmidt as part of the presentation.

His Wikipedia entry about his currency speculation profits may be alluring to the Google founders who have shown a penchant for aggressive investments into a number of markets.

“On Black Wednesday (September 16, 1992), Soros became immediately famous when he sold short more than $10 billion worth of pounds, profiting from the Bank of England’s reluctance to either raise its interest rates to levels comparable to those of other European Exchange Rate Mechanism countries or to float its currency.

Finally, the Bank of England was forced to withdraw the currency out of the European Exchange Rate Mechanism and to devalue the pound sterling, and Soros earned an estimated US$ 1.1 billion in the process. He was dubbed “the man who broke the Bank of England.”

Be careful guys, it is a highly volatile market and we wouldn’t want you to lose money.

Incentives can help mobile users overcome their initial negative reactions to mobile advertising, according to survey data released by ABI Research.

37% said incentives would increase their response to a text-based ad

11% said incentives would have no impact

“We think that in general, advertisers and operators must tread carefully when delivering marketing messages to a consumer’s mobile handset, especially given that many subscribers believe they are paying a significant amount of money for their mobile services,” says research director Michael Wolf. “However, we believe that marketing and advertising messaging that is properly crafted and that utilizes incentives could enjoy more acceptance on the part of the consumer.”

This is in line with recent data we’ve seen showing that online couponing is on the rise.

Recently, CarMax released a new search feature allowing car buyers to search for vehicles by Miles Per Gallon (MPG). Now, they’re releasing data shedding light on that decision.

From the period beginning March 2008 and ending in July, searches for hybrid vehicles increased by 43%. The spike is, of course, driven by high gas prices during that time, and hybrids get great gas mileage.

CarMax is also pointing out that cost alone isn’t a reason to switch to hybrids. It can take years to make up for the extra cost, and thousands of non-hybrid cars in its inventory can get up to 25 to over 30 MPG.

This is such a great example of what a company can do by paying attention to analytics and what consumers are searching for. It also shows the importance of investing in a solid site search.

How does this inspire you to do the same in your search marketing efforts? Give us your ideas in the comments section.

The rumors of Microsoft still being open to a deal with Yahoo are true - with a caveat. The deal would have to be struck with a new board, not with Jerry Yang and his current set of cohorts. It could include a full acquisition or an alternative deal for just search. The software giant released the following statement:

“Despite working since January 31 of this year, as well as in the early part of last year, we have never been able to reach an agreement in a timely way on acceptable terms with the current management and Board of Directors at Yahoo!. We have concluded that we cannot reach an agreement with them. We confirm, however, that after the shareholder election Microsoft would be interested in discussing with a new board a major transaction with Yahoo!, such as either a transaction to purchase the “Search” function with large financial guarantees or, in the alternative, purchasing the whole company.”

Of course, it’s not just any new board. Microsoft’s Ballmer has been talking to Carl Icahn, who has put together a proxy board to take over Yahoo. The talks prompted Icahn to break out the quill, and compose his latest edition in his series of letter-writing expeditions:

Carl C. Icahn
ICAHN CAPITAL LP
767 Fifth Avenue, 47th Floor
New York, NY 10153

July 7, 2008

Dear Yahoo! Shareholders:

During the past week I have spoken frequently with Steve Ballmer, CEO of Microsoft. Several of our conversations have lasted as long as an hour. Also, a few of our discussions have taken place while other top executives, such as Kevin Johnson, participated. Our talks centered on the industry in general but, more importantly, on how Yahoo! and Microsoft can do a transaction together. Steve made it abundantly clear that, due to his experiences with Yahoo! during the past several months, he cannot negotiate any transaction with the current board. His logic is simple. If and when a transaction was consummated, Microsoft would be guaranteeing a great deal of capital at closing. However, a transaction could take at least nine months and perhaps longer to obtain regulatory clearance in the U.S., Europe, and elsewhere. During that period, if the current board and management team of Yahoo! mismanage the company (and their recent track record is far from reassuring), Microsoft would be putting its money at risk and a great deal could be lost.

For example, in a transaction to purchase the whole company, a very large amount of capital would be due at closing. Even in an “alternate” transaction, where just the “Search” assets were purchased, large guarantees would have to be made and, again, large sums could be lost if the company was mismanaged. Microsoft perceives this risk may be quite high with the current board and management in place. However, Steve made it clear to me that if a new board were elected, he would be interested in discussing a major transaction with Yahoo!, such as either a transaction to purchase the “Search” function with large financial guarantees or, in the alternative, purchasing the whole company. He stated that Microsoft would be willing to enter into discussion immediately if the new board that has been nominated were elected. While there can be no assurance of a future transaction, as many of you know, I have negotiated successfully a large number of transactions over the past years. If and when elected, I strongly believe that in very short order the new board would, subject to its fiduciary duties, be presenting to shareholders either a purchase offer for the whole company or a very attractive offer to purchase “Search” with large guarantees. I hope to continue to be speaking to Steve over the next few weeks; however, since I do not as yet represent the Yahoo! board, both Steve and I do not wish to get into details over price, or even which of these transactions makes the most sense.

Much has been said about how badly the Yahoo! board has “botched up” negotiations with Microsoft over the past months. There is no need to keep pointing out the mistakes I believe Yahoo! made by not immediately taking a $33 offer made by Microsoft. But one thing is clear — Jerry Yang and the current board of Yahoo! will not be able to “botch up” a negotiation with Microsoft again, simply because they will not have the opportunity.

Our company is now moving toward a precipice. It is currently losing market share in its “Search” function; our current Board has failed to bring in a talented and experienced CEO to replace Jerry Yang and return Jerry to his role as Chief Yahoo!, and currently it is witnessing a meaningful exodus of talent. It is no secret that Google (which hired a great operator as CEO) continues to dramatically outperform Yahoo!. According to publicly available information, Google’s income from operations grew 59% per year over the last two years while Yahoo!’s shrank 21% per year. However, none of the above has caused the Yahoo! board to hesitate in paying themselves $10,000 per week. IT IS TIME FOR A CHANGE.

If elected, I have little doubt that the new board, subject to its fiduciary duties, will do what the current board will not do, i.e.,

– Immediately start negotiation with Microsoft to sell the whole company or, in the alternative, sell “Search” with large guarantees.

– Move expeditiously to replace Jerry Yang with a new CEO with operating
experience.

Sincerely yours,

CARL C. ICAHN

Like a politician making campaign promises, Google has announced its involvement in the launch of the “Internet for Everyone” campaign. Unlike politicians, we actually know what the campaign is all about from the title and there’s a higher chance of Google carrying out this platform than politicians keeping their promises.

The “Internet for Everyone” campaign is based on four principles: Access, Choice, Openness, and Innovation. Yup, that sounds like Google. Here’s a brief history.

• In August of 2006, Google makes Wifi available for free in the city of Mountain View, California, where their headquarters are located.
• One year later, Google announces its plans to lobby for “white spaces” on unused TV spectrum, in the hopes of expanding wireless internet. Google has been very vocal about this push in 2008 as well.
• October 2007 - Google announces OpenSocial, a set of common APIs designed to work with social networks participating in the initiative.
• November 2007 - After months of speculation about Google releasing its own mobile phone, the rumors are laid to rest with the announcement of a mobile platform, Android. Google’s plans for open spectrum come into clear view.
• In March 2008, the FCC holds a spectrum auction. Though Google does not win, they bid high enough to force Verizon, the winner of the C block spectrum, to open the spectrum open to third-party applications and handsets. And just to let everyone know they’re paying attention, one month later Google releases a reminder to Verizon and the FCC to keep the spectrum open.
• Later that month, Google teams with MySpace and Yahoo to form the OpenSocial Foundation, to promote the development of cross-platform applications, driven by an open community.
• May 2008 - Google joins a coalition of investors supporting Sprint and Clearwire’s combining of their WiMax businesses.
• Last month, Google launches “Friend Connect,” which enables developers to create social media applications that can span several networking sites as well as be expanded to non-social sites.

There are many freebie blogs out there and I don’t spend a lot of time reading them, as most are just promoting affiliate offers hoping to capture $1 here and $1 there as you otpin to a form that will cause you to get more junk email than you can imagine.
Then there are the contest [...]

Here’s a must-read for the week: a great interview with Google’s Matt Cutts by Eric Enge, CEO of Stone Temple Consulting, in his blog this morning.

There’s terrific information on link building from Google’s perspective, among other topics.

What Google looks for are links that will stand the test of time. In Matt’s words:

So, what are the links that will stand the test of time? Those links are typically given voluntarily. It is an editorial link by someone, and it’s someone that’s informed. They are not misinformed, they are not tricked; there is no bait and switch involved. It’s because somebody thinks that something is so cool, so useful, or so helpful that they want to make little sign posts so that other people on the web can find that out.

Matt also clarified Google’s views on links originating with Digg:

Whenever you pay money to a social media consultant to try to show up on Digg, you are not paying for links. You are funding some creativity; you are sponsoring your page for some creativity.

It’s not like you held a gun to anyone and said “Okay, you have to link to me.” The people who link to the site are linking because it’s something compelling instead. So, there is still some editorial choice there.

Don’t miss Matt’s take on widgets either. For that you’ll have to go to the interview.

In the midst of preparing for a proxy board fight brought on by Carl Icahn, the Yahoo! Search team has put out a call for new employees. A recent post on the Yahoo! Search blog implores, “We’re looking for the brightest technical minds in the business to help us build the next generation of search.”

The timing is curious. Any developer that’s paying attention must be wondering if signing on with Yahoo will ultimately have them at Microsoft. Or perhaps have them out the door in a “last hired first fired” scenario resulting from inevitable staff cuts that follow most mergers and acquisitions.

On the flip side, Yahoo is needing to show its strength more than ever if Jerry Yang and the current Board of Directors hope to come out victorious at the August 1 shareholders meeting. Then again, their call for developers may be part of the strategy. Visiting the Yahoo! Jobs page feels like a tour of the latest talking points in the quest to remain independent.

Visitors are greeted with a big image demonstrating just how many people are using Yahoo:

Not so sure the “Think Purple” appeal is going to go over well with the male-dominated pool of software developers, but to each his own.

Then the site is peppered with these gems:

“With 1 out of every 2 people online visiting Yahoo!, we need some seriously big thinkers to fill these positions. Are you up for the challenge?”

“It would take 7,000 years for all the photos on Flickr to be developed at a one-hour photo!”

What do you think of Yahoo’s recruitment of developers for its search team? Bad timing or marketing to shareholders? Sound off in the comments.