Search engines responding slowly to
regulator's request
Thu Jul 11, 4:59 PM ET
By
MICHAEL LIEDTKE, AP Business Writer
SAN FRANCISCO - Online search engines are
built to find information in seconds. But most
leading sites appear to be taking their time
meeting a U.S. federal request for more
transparency on how money influences their
display of search results.
In
late June, the Federal Trade Commission said
most of the Web's largest search engines don't
reveal enough about the financial mechanics
that increasingly give advertisers preferred
treatment.
The FTC delivered its findings as a
recommendation but indicated it could pursue
legal action if the search engines don't build
"clear and conspicuous" distinctions between
fee-based results and those produced by
objective formulas.
The agency did not set a timetable for
compliance, which experts say is technically
uncomplicated.
To
gauge the search engines' response, The
Associated Press submitted a series of random
queries this week.
The spot checks found few changes had been
made, even though it appears all but one of
the surveyed search engines will have to make
revisions to meet the FTC's guidelines.
The AP reviewed search
engines at a dozen sites: Alltheweb, AOL,
AltaVista, AskJeeves, Google (
news
-
external web site),
Hotbot, Looksmart, Lycos, MSN, Overture,
Netscape and Yahoo.
Google was the only search engine that
appeared to meet all the criteria laid out by
regulators.
That's probably no surprise to Google's
regular users. Co-founders Larry Page and
Sergey Brin have fiercely protected Google's
editorial integrity, most notably by isolating
ad-driven results under the heading "sponsored
links" in shade boxes at the top and sides of
the main page.
The AP's examination found all the other
search engines still had some fine-tuning to
do to fully address regulators' concerns.
AltaVista changed the way it listed its
ad-driven results the day after the AP asked
why the Palo Alto-based company hadn't adopted
one of the FTC's simplest recommendations.
Paid placements previously listed under the
label "products and services" began showing up
under AltaVista's "sponsored matches" heading
on Thursday.
The FTC's concerns are focused on two areas.
The first is paid placements, in which result
rankings are determined primarily by how much
money advertisers are willing to pay to be
listed under specific search terms. These
listings typically are placed above search
results generated using mathematical formulas
that rank Web sites based on their relevance
to the request.
The FTC recommends that that paid placements
be shown in separate areas on the page,
labeled "sponsored links" or "sponsored search
listings."
Most of the engines
began to adopt language along these lines
after the July 2001 complaint from a Ralph
Nader (
news
-
web sites)-backed
consumer watchdog group, Commercial Alert,
that triggered the FTC's inquiry.
In
its advisory, the FTC applauded these changes
but said some search engines still "may not be
sufficiently clear" about their paid
placements.
The FTC asked search engines to disclose more
on "paid inclusion programs." Another way
money influences the rankings, this technique
has a more subtle effect on search results.
To
keep their information databases fresh, search
engines regularly review the content on Web
sites, typically by sending out automated
"spiders" that crawl much of the Internet
every few weeks.
Under paid inclusion programs, Web sites pay
the search engines to visit them more
frequently and dig deeper into their content.
Although many search engines contend paid
inclusion only has a minor impact on how
results are sorted, the FTC concluded that the
programs could distort rankings. The FTC thus
asked the search engines to provide an easily
located explanation about paid inclusion and
its potential impact.
It
appears all the engines except Google still
need to make this change. It's not an issue
for Google because its database doesn't
include entries from paid inclusion programs.
If the search engines
don't make changes on their own, federal
regulators almost certainly will take harsher
action, said Danny Sullivan, an industry
analyst for
Searchenginewatch.com.
"I
don't think the search engines can afford to
take a 'head in the sand' approach on this,"
he said.
The search engines face a balancing act as
they try to comply.
Because they make money every time Web surfers
click on an advertiser's link they don't want
the additional disclosures to lessen the
appeal of their paid listings.
A
national Consumers Union poll of 1,500 adult
Internet users taken during December and
January found that 30 percent would be less
likely to use search engines where advertising
influences the results. Another 56 percent
said advertising's influence doesn't matter to
them.
Most of those surveyed — 60 percent — weren't
even aware search engines received money to
list some sites more prominently, an
increasingly common practice.
AltaVista isn't the only search engine
tinkering with its site in hopes of satisfying
the FTC.
Ask Jeeves has provided an additional
explanation about some of its fee-based search
techniques in its "editorial guidelines for
answers" section and said it planned another
revision Monday to change how some
advertising-driven results are listed.
"We are taking these (FTC) guidelines very
seriously," said Heather Staples, the
company's chief marketing officer.
If
the search engines haven't complied by
September, Commercial Alert said it would
probably will file another complaint with the
regulators.
"It's important for people to know whether or
not their search results are being bought by
big business," said Gary Ruskin, the group's
executive director. |