The Google Economy

Google.I’ve been talking about it a lot lately, most recently in a comment at LibDev.

In the old world, information companies could create value by limiting access to their content. Most of us have so internalized this scarcity = value theory that we do little more than grumble about the New York Times’ authwall or similar limitations to the free-flow and linking of information.

Jenny Levine wrote recently about OCLC/LJ’s short-run (though not yet ended) experiment with authwalls. Jenny concludes that the move might have sold an extra subscription here or there, but completely killed the online linking that made LJ’s articles so authoritative in search engines.

Roger at Electric Forest struck to the heart of this recently:

…keep the [information] under heavy protection and you will find that people ignore this sheltered content in favor of the sources that embrace the web and make everything accessible… [Open and accessible resources] will become the influential authorities, not because they are more trustworthy, or more authoritative, or better written, but because they are more accessible.

In this new world, value is measured by search engine rankings, which are largely a measure of the number of links pointing to a resource. Because it’s impossible to link to things behind authwalls, or to material that isn’t online at all, Google et all have turned that scarcity = value equation on its head.

Today, in order to be relevant…in order to gain value, material must be available, linkable, indexable, and usable. Over the long haul, the best way to increase your Page Rank is to create outstanding content and make it freely available to everyone.

This is (part of) what got Zach blogging and it’s exactly what make’s Google’s non-hierarchical world work. Soon to be very related: social bookmarking as made famous by del.icio.us, now Yahoo! feature.

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5 Comments

  1. Pingback by MaisonBisson.com » Blog Archive » DRM: Bad For Customers, Bad For Publishers on August 5, 2005 11:49 am

    [...] Lawsuits against customers go hand in hand with DRM in limiting community buzz for a particular artist or song. It would seem that music is subject to the rules of the Google Economy too, but losing evangelists for the latest Britney Spears song wouldn’t be the worst thing in the world. Her record company is going to spend millions promoting the album anyway and teenage girls will buy it because it’s obvious. The problem, as Bob Frankston explains, is the non-obvious: DRM is a way of assuring that the “content owner” can maintain control. That seems innocuous in itself but it has the effect of limiting the marketplaces’ ability to change. This makes sense in limited cases as it allows investors to recoup the cost of their investment and make a profit but if DRM works too well it prevents growth. A marketplace is a dynamic system that keeps changing. Why doesn’t the marketplace simply devolve into chaos? The reason is that it is an evolutionary process – one that provides opportunity for creating new results. We can think of this opportunity in terms of Chris Anderson’s long tail — it represents the value to be discovered rather than what is obvious. [...]

  2. Pingback by MaisonBisson.com » Blog Archive » Linking Bias on August 11, 2005 8:16 am

    [...] The patterns Boyd points to would certainly effect the Google Economy, our way of creating and identifying value based on linking structures. And though she’s emphasizing gender differences, the patterns show broad differences in linking patterns between content types as well. [...]

  3. Pingback by NoSheep! » NY Times Steps Back 5 Years on September 20, 2005 11:58 pm

    [...] You have to wonder what the guys at NY Times are thinking. They just announced a new service called TimesSelect. One of the things being made only available to TimeSelect subscribers is “daily columns from influential Op-Ed writers” according to the site. NY Times can not be blind to the Google Economy or to the rise of blogs. Increasingly bloggers who have their fingers on the pulse of politics, current events, and public interest stories are becoming the resource for people to get opinion pieces. So why would NY Times decide to launch a service that puts their colunists behind a pay service? Either they’re going bankrupt or there is a hidden agenda I’m not seeing. They have to be making plenty off their ad revenue on the site… [...]

  4. Comment by sdfg on June 2, 2006 12:20 pm

    […] You have to wonder what the guys at NY Times are thinking. They just announced a new service called TimesSelect. One of the things being made only available to TimeSelect subscribers is “daily columns from influential Op-Ed writers” according to the site. NY Times can not be blind to the Google Economy or to the rise of blogs. Increasingly bloggers who have their fingers on the pulse of politics, current events, and public interest stories are becoming the resource for people to get opinion pieces. So why would NY Times decide to launch a service that puts their colunists behind a pay service? Either they’re going bankrupt or there is a hidden agenda I’m not seeing. They have to be making plenty off their ad revenue on the site… […]

  5. Comment by burgan on November 19, 2007 5:37 am

    thank you

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