Digitally Doomed
The rise and rise of search and the sceptical era of digital marketing. Is the end nigh for digital marketing?

Probably the most important step the Internet ever took was to receive the birth of Search. The ability for anyone to navigate themselves through the endless information, sitting on over a trillion websites in the world today. Search is also responsible for a considerable amount of innovation happening on the web today. Not only are the pioneers of Search raking in billions, but with distorted valuations for their companies, they have the punching power to dominate the digital marketing space, and invest and innovate faster than most companies in next generation software and services. Take for example Google, it recently surpassed HP (Hewlett-Packard) in market cap, rising to $175BN!

The market right now seems to share two perceptions about Search - firstly, we ask ourselves where will it go next? We cannot wait to see the new services of the future. Our perceptions are based on the fact that it is the fundamental infrastructure of the web and we rely on its functional need in our lives. An already impressive array of services attached to Search that serve to bolster existing communities and grow new followers. Finally, as Search provides a destination for millions of loyal visitors, there are some interesting, still relatively new, digital marketing possibilities for companies considering online ad-sales (advertising your company online, such as through Google Ad-Words).

However, there is the other perception. Companies using Search are beginning to get suspicious about their commercial models, particularly around online advertising. No one likes the traits of companies in monopoly situations; Search is accused of having too much control. This might be due to the main Search players, such as Yahoo and Google, hiding its standards and proprietary technologies, making their business models difficult to determine. Everyone safeguards what is proprietary technology, but when it is closely linked to how they charge for online advertising - that’s a problem waiting to burst. Jimmy Wales (Founder of Wikipedia) recently commented on the need to have open standards and policies in Search, with search technology driven by an open community - showing transparency in how a search engine returns its results after a query. This thinking has led Jimmy ‘Jimbo’ Wales to create the first open-source search engine called Wikia Search.

Presently, Google, Yahoo and others return search results based upon their own search criteria; the problem is that we cannot determine whether the results are biased. Moreover, their online advertising business models follow this thinking and it is mystical in terms of how a company gains its placement versus the amount it costs to achieve it. Finally, the results after receiving the placement are difficult to measure value, and even harder to trust.

Is this a big deal, well most likely yes right now, but if Search is to maintain its dominant position and continue to diversify its value, and grow its community - a few things will need to happen. Search companies will have to be more transparent in their technology and enable companies to partner with them, and develop their own software and services - sharing the wealth and gaining the trust through open standards is the only way, or Wikia Search will have its day. Not that I am trying to be poetic, but digital marketing is growing so quickly, and now other communities such as social networking are getting in on it. There also needs to be more measurable evidence of value in online advertising, lets not forget that online advertising particularly through Search is still in its infancy. Importantly, it is clear the online business models around advertising and beyond are likely to become more complex as companies compete for differentiable value, thus the need to regulate, report and provide tools for companies to maintain confidence in their investment will be critical. Otherwise, growth in the Search space will slow, and an ever-increasing cynicism over digital marketing will take root.