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Dr. Rado Kotorov is chief innovation officer at Information Builders, and is responsible for emerging reporting, analytic and visualization technologies. He has developed analytic models and applications for the pharmaceutical, retail, CPG, financial and automotive industries.

You’ve likely been experiencing a deluge of online information coming at you in recent years — an overwhelming number of status updates, e-mails, tagged images and so forth. You’ve probably also seen, and potentially been alarmed by, the growing accuracy of targeted advertisements — “People You May Know,” and other “offers” online.

As the quantity of irrelevant information has exploded online, so too has the market for the delivery of targeted offers and information. Social networks, in theory and in practice, expose many people to contact and influence. Without precise models, people will continue to be bombarded with ineffective offers and other irrelevant information. Predictive analytics, a branch of data mining concerned with predicting future probabilities and trends, applies a filter to users’ online interactions with the aim of delivering more value from a sea of irrelevance.

With increased value comes the potential for social networks to make money as well. Here’s a look at some specific ways in which predictive analytics will make social networks money.

Recruiting

Many recruiting sites out there on the web, from LinkedInclass="blippr-nobr">LinkedIn to SelectMinds to Monster, promise to be able to match candidates with job requirements in unique and increasingly accurate ways. Predictive analytics is at the core of their business model, as it automates the process of making these matches.

When a recruiter posts a job description, a predictive algorithm runs through candidates and calculates compatibility. The technology is, in many cases, embedded in search applications. The most accurate and efficient of these analytics will deliver the most value and see the greatest adoption over time. Those recruiting and talent acquisition sites that allow businesses to leverage the existing social networks of their current and former employees are the best positioned to monetize their users’ employment data in new ways. Businesses can get value from these existing networks without the time and resource commitment it takes to build their own.

Sentiment Analysis

As sites like Twitterclass="blippr-nobr">Twitter and Facebookclass="blippr-nobr">Facebook gain value to the business world, many companies have cropped up to analyze and establish what the sentiment is of the collective online intelligence and also to identify individuals with influence and authority. Companies including Klout, ViralHeat and Radian6class="blippr-nobr">Radian6 all scan blogs and other social media channels with predictive models to determine if the content surrounding a brand or person is negative, positive or neutral. As this information becomes increasingly valuable to businesses of all sizes, these sentiment analysis companies are expected to grow rapidly.

Market Fluctuation

Social media channels are open to everyone. Day traders, retail investors and analysts are cruising around on Twitter and Facebook. What these types of people say and do online is not insignificant in an era when [Flash Crashes and Fat Fingers] are being closely scrutinized and regulated. New models are cropping up to predict stock fluctuations based on Twitter posts. Similar to sentiment analysis, these companies are able to look at the total number of tweets, as well as positive and negative comments to predict whether a stock price will go up or down. These types of companies will become a hot commodity as investors begin to rely on the wisdom of crowds.

Recommendation Engines

No one likes to be bombarded with irrelevant offers and content while using their favorite social network. But the more active you are online, the more effectively predictive analytics can work to deliver targeted and relevant offers.

Sometimes it feels like Facebook knows you better than you know yourself. RSVPed “Yes” to that big gala? You may see a discount offer for Saks. [Are you a woman between the ages of 18 and 34? A Facebook ad may tell you how you can lose those extra inches around your waist.] These offers are no longer random and are therefore increasingly effective. Leveraging the existing data from your previous activity to predict what will happen in the future is becoming, rightly, more prevalent and valuable to social networks that can sell this promise to businesses and intermediaries.

Location-Based Marketing

Do you walk down the same street at dinner time every day? Wish restaurants on that street would compete in real-time for your business?

As social networks add in more location-aware features like Facebook Places and whole new businesses are built on the promise of geo-location including SCVNGR and ShopKick, predictive analytics deliver insights into where groups and individuals will be and when, not to mention what their interests may be. For businesses, there is big money to be spent on location-based advertising in the coming years. As a result, social networks can run their existing location data through predictive models to provide companies with future insights into where to allocate their marketing and advertising budgets for the biggest returns.

More Business Resources from Mashable:

- How Companies Can Use Sentiment Analysis to Improve Their Business/> - HOW TO: Earn Some Inexpensive Online Exposure for Your Small Business/> - HOW TO: Accept Credit Card Payments on Mobile Devices/> - 6 Tips on Starting a Digital Business from the Founder of Pandora/> - 5 Big Social Media Questions from Small Business Owners

Images courtesy of iStockphotoclass="blippr-nobr">iStockphoto, Nikada, AUDINDesign

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Though social media has proved itself an effective tool in helping journalists gather news and connect with their communities, a pervading question among the skeptics still remains: Where’s the money?

As social sites like Twitterclass="blippr-nobr">Twitter and Facebookclass="blippr-nobr">Facebook build their empires and seek to remedy their own financial instability in the hope of turning profits, news organizations are experimenting with ways to monetize their social media presence and leverage the social web to complete an online revenue puzzle.

The revenue is there, but the social web won’t necessarily solve that puzzle. “There’s no silver bullet,” Jim Brady, the general manager at TBD.com, said at the Online News Association Conference last week. “There’s just shrapnel, pieces of revenue.” Brady, who launched TBD.com this summer, said display ads are certainly not the future in revenue for news and that it will come from multiple revenue streams. class='blippr-nobr'>Newsclass="blippr-nobr">news organizations have certainly been experimenting where they can to get revenue in pieces, from mobile applications to launching group buying sites. Here’s a closer look at some of these efforts.

Self-Serve “Real Time Ads”

Much of online advertising consists of static display ads that are sold based on a CPM ad model, a varying price per 1,000 impressions. An advertiser delivers an ad design that then rotates with others on the site. What if small business advertisers could change the message of that ad in real time?

That’s the idea of Minnpost.com’s Real Time Ads, which essentially use customized widgets that pull in messages from an advertiser’s Twitter, Facebook or YouTubeclass="blippr-nobr">YouTube accounts. Local businesses can buy the widget space for a specified amount of time, instead of a CPM model, and are able to update the content whenever they’d like, making each message timely and perfect for a daily deal or promotion.

It is especially useful for local business. Even if they don’t have a social profile or an RSS feed to attach to the ad, they can update their ad by e-mailing a new message to their account, said Karl Pearson-Cater, director of operations at Minnpost.com — a non-profit news organization that relies largely on donations.

“Advertisers love real-time ads. The biggest benefit is how easy it is to get set up and how easy it is to maintain,” Pearson-Cater said.

If real-time ads work for Minnpost.com, Pearson-Cater said they can help adapt the platform for other publishers as well. In the past few months, he said they’ve begun to see a significant revenue stream. They now have approximately $15,000 in annual contracts using real-time ads.

At Yahoo! News, Anna Robertson, director of social media and original video, said they’re considering sponsorships around social widgets on pages as well, or another form of sponsored modules. It’s likely that this form of advertising will become more prevalent across news sites.

Revenue Share

At TBD.com, Brady and his team are leveraging a network of blogs to sell distributed ads. When they come to advertisers, they’re able to sell ads across a network of 196 blogs, which they share 35% of the revenue with. It’s a win-win for TBD and its partners that get revenue they may not have gotten otherwise.

Another approach, of course, is being on the receiving end of social partnerships or revenue sharing. YouTube, for example, shares revenue made through AdSense and publishers can have Promoted Videos run on their page. And as of late, YouTube has become even more sophisticated in making money off of copyright infringers, sharing revenue with the original publishers.

In-stream Advertising

On websites, display ads coexist beside content on a page. But more and more content is becoming part of the social news stream. Users are becoming more accustomed to receiving and digesting information in a stream format on Facebook, Twitter and other sites that display updates in real time. Because people often engage the content in the social space and may not even come directly to the site, monetizing social media off-site is just as important, said Mike Orren, president and founder of Pegasus News in Texas.

“The thing that hasn’t been figured out is how to do so without alienating the social media audience that seems generally trained to disdain ’sponsored’ postings,” Orren said. But of course, that could change.

It’s also important to set clear user expectations of what’s what. Robertson from Yahoo! News said if done effectively, while protecting “church and state,” it can be a good option. She said it’s up to the news organizations to be transparent about what is an ad and what’s content in order to protect journalistic integrity.

Twitter has begun releasing several products to monetize its service, including Promoted Tweets, which are sponsored messages that are featured within a user’s stream. However, news companies have experimented with selling in-stream messages to advertisers and sponsors. The Austin-American Statesman experimented with selling sponsored tweets for $300 per day for two tweets. And according to the paper’s social media editor Robert Quigley, who had to approve the tweets before they went out, followers found them non-intrusive.

In fact, sites like Ad.ly work with advertisers who buy sponsored messages that appear on their participating partners’ Facebook Pages, Twitter accounts and mobile and site widgets. Its partners include a slew of celebrities like Kim Kardashian and publications like TIME.com.

Laura Heck, director of business development at TIME.com, said more publishers are starting to experiment with this format. At TIME.com, Heck said they’ve recently begun to offer advertisers access to its 2.2 million Twitter followers and 165,000+ Facebook fans for sponsored messages. Heck said they’ve put strict rules in place for the type of messages they will feature, frequency, etc., to make sure it doesn’t hinder the user experience.

Selling Traffic and Amplification

The ROI for news companies putting resources to build their social presence has often been a more “engaged” community of readers, a notion that is too often measured by a sheer increase in traffic referrals from social sites or more time spent on site. Many defend social investment by showcasing an increase in traffic, traffic that can then, hypothetically, sell more ads.

Ken Doctor, author of Newsonomics and news industry analyst at Outsell, said social networks have become the fastest growing source of traffic referrals for many news sites. For many, social sites like Facebook and Twitter account for 10% to 15% of their overall referrals, but are number one in growth. The results are even more heavy on social for news startups like CapitalNY, Doctor said, who get 40% or more of their traffic from social. And of course, the quality of these referrals is often better than those readers who come from search. They yield better conversation and are more likely to become regular users of the site, he said.

Though many news organizations have driven traffic organically, The Washington Post recently bought #Election as a “Promoted Trend” on Twitter, which then highlighted its tweet above others using the hashtag in Twitter conversation, likely resulting in a big increase in referrals from visitors who came across the Promoted Trend above all others in the Trends sidebar.

“When we talked with Twitter about the idea, we thought it was a great opportunity to be innovative, go to readers and highlight our content front and center with Twitter’s vast and engaged audience,” said Katharine Zaleski, executive producer and head of digital news products. “The idea wasn’t just to sponsor The Post, but rather, we chose a broad hashtag, probably the broadest for elections, to be able to aggregate the best election tweets from multiple sources and not just us.”

But perhaps more importantly, social amplification has become part of the sell. On top of the site metrics and reach, advertisers want to now know how the content will be amplified off the site with social media. Such is the case with content sponsorships. If an advertiser has its name on a piece of content that they sponsored, they also want to know how many times it was retweeted, shared on Facebook, dugg on class='blippr-nobr'>Diggclass="blippr-nobr">Digg, etc. For example, TIME worked with an advertiser on a “Stay class='blippr-nobr'>Connectedclass="blippr-nobr">Connected” package, which included leveraging social features on TIME.com and its social networks.

Making Ads More Social

Advertisers have begun trying to make ads more social by adding a Facebook “Like” button within the frame or a stream of tweets that make the ad something that readers can interact with. It’s a light-weight way to get users to engage with and even sometimes share advertisements with their social networks while helping advertisers increase their one-to-one relationship with readers by growing their own social following, said Heck from TIME.com.

“Ads are increasingly becoming more social as we’re giving users the ability to engage with and share the ad content,” Heck said.

The idea of course is that users are far more responsive to content recommended by their friends or personal connections rather than content from a branded account or page. At TIME.com, Heck said they’re working on identifying ways to include advertiser branding within shared content. But the details of that formula have yet to be worked out.

Leveraging Social Site Real Estate

Though display ads may not be the future, they can be simple to integrate on social sites. News organizations like TIME and more recently the Silicon Alley Insider have sold their Twitter backgrounds as a social display ad.

Similar to readers landing on TIME.com and being exposed to display ads on the site, Twitter users landing on @TIME on Twitter were also exposed to a display ad in the background. Thinking creatively and putting effort to sell those spaces can make them more valuable by adding another spot for display inventory.

What’s Next? Personalized Social Ads

The start and glimmer of what’s possible with personalized and more socially targeted ads has been the result of news organizations like The New York Times and others selling advertising that specifically targets readers who came to the site through Facebook or Twitter. Twitter itself has targeted its Promoted Tweets in the stream based on relevancy, though it is sometimes tied to a Promoted Trend.

News organizations could take advantage of building structured data to better target their advertisements to readers, and perhaps even making advertisements more useful. Of course, this already takes place at a lot of organizations. At Pegasus News, Orren said its entire business model centers on using structured data to customize display ads with all of its content being tagged using a hierarchical taxonomy of more than 3,000 local topics and geography. But, he said, the company hasn’t yet figured out how to take that offsite or to open the flow of data between its sites and the social web, while at the same time respecting privacy.

Doctor said he sees social media optimization as a driver of audience and engagement, and that engagement getting monetized through targeting, rather than blasting social marketing pushes. Being able to get more sophisticated in targeting individuals and specific communities will make monetization efforts easier.

Social media, which effectively has infiltrated all corners of the web, has great potential in not only bringing in revenue but also making ads more useful to readers while also satisfying the needs of advertisers aiming to effectively reach the public. The social web can change the way we think about ads, by making them social and personalized to create utility for the user.

Robertson, from Yahoo! News, said we’re just at the beginning of this space. Yahoo acquired Citizen Sports close to a year ago and it’s done a good job of bringing in revenue attached to social media streams. Yahoo is working to scale some of the concepts to news, Robertson said.

“This is still a fairly new space with a lot of opportunity for news organizations and brands to experiment and innovate,” she said.

More Social Media Resources from Mashable:

- 5 Most Engaged Brands in Social Media/> - 5 Winning Social Media Campaigns to Learn From/> - HOW TO: Get the Most Out of Your Business Facebook Page/> - 5 Huge Trends in Social Media Right Now/> - A Field Guide to Using Facebook Places

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Introduction - If you are still learning about search engine optimization (SEO), you are probably a bit confused about the difference between on-site and off-site SEO strategies. On-site tactics are more straight-forward for the beginner and are probably written about the most. I thought I would write an article and cover what I've learned. This pool of SEO knowledge comes from working with about 10 clients and another 10 personal web sites over an 18 month period.

To anyone with an SEO background, there are certain basic on-site SEO tasks that any web master, business owner, or Internet Marketer needs to be aware of. These include the following major components:

1) Title Tags - The title tag in your HTML meta code is the tag that tell the browser what to display in the title of the window at the very top of the screen. Because this text is so visible to the user, Google likes to rely heavily on this text as a clue as to what your page is about. As a result, it is a really important SEO strategy that your title tag be filled with keywords that are appropriate to the content of the web page. Furthermore, you really don't want the same title tag on every page. This is not good for SEO. Instead, you want to have different keyword phrases in your title tags that properly identify the theme of that particular page. Remember, you are trying to help the search engines easily digest your content. That's basically what SEO is. You want to aid them in their understanding of what this page is really about.

2) The first H1 tag - Similar to the title tag, Google will look at the first H1 text to appear on your page as a strong signal as to what the page is about. Use it wisely. Again, you want to place keyword phrases here that are thematically related to what the information on the page is conveying to the end-user.

3) The name of the page itself - As you name your pages in your web site, use plain English as much as possible for SEO. You will notice that WordPress uses this extensively in their blog software. This is no accident and WordPress is considered the best blog for SEO. For example, http://example.com/?On-Site-vs-Off-Site-SEO-tactics&AID=22 will perform much better for SEO than http://example.com/?AID=22. Why? Because there is descriptive text in the longer version of the page name that helps the search engine know what the page is about. Many people have written about issues around "dirty links" and SEO (links including system variable data such as AID=22 in the example above). I think it is better if you can design your system without any variable data at all. It just takes this SEO issue away. And it's just easier for the search engines. It's also easier for the end-user. However, there is no problem promoting pages via SEO with variable data in the links. I've been able to make both fly using the same SEO tactics with no problems. The search engines are smart enough by now to manage through that variable data. Just make sure your plain English is in there.

4) Keyword meta tag - This tag used to get a ton of play for SEO, but is now largely ignored by the search engines. I believe it fell out of favor due to manipulation and misuse. It is a tag that is not seen by the end-user, so unscrupulous web masters abused it and it became less-and-less important for SEO. Real SEO tactics don't abuse or deceive. I still populate my keyword tags because I believe they are still looked at, but I don't believe they are very critical. If nothing else, it's another instance of your keywords. They all help SEO.

5) Description meta tag - This tag is still useful, but probably more for Yahoo and MSN. Since you will be in this part of your web site anyway to get the Title right, you might as well make this variable-driven as well and make the description appropriate to the page. Again, it can't hurt SEO.

6) Keyword Density - This is very important for SEO. Keep in mind that the search engines are just large computer programs digesting your site and trying to figure out what it is about. One of the simplest things they do is to count up all the words and look for repeats. They then calculate percentages, or densities, of specific 1-word, 2-word and 3-word phrases that are found in your text. By looking at the most popular keyword phrases, their programs understand the important themes of your page. If you observe your own writing on a specific subject, you will see the patterns as well. I don't recommend that you write solely with keyword density in mind as it will result in lower quality content. However, I also don't recommend that you completely ignore keyword density in your content creation. My preferred approach is to write content straight-up for the first draft. Then, as you edit for grammar, consistency, and clarity, also edit for density. Run your content through a density checker and see what phrases are used the most. Make adjustments accordingly so that your top themes / keyword phrases are showing up between 2-4% of the time. But don't do this to the extent that anything reads as unnatural. You need to always keep your audience in mind.

7) Outbound links - What your page links to matters, in terms of both the quality and quantity of links. As you build links out of your page, be specific about where they go. Don't link to low-quality or bad-neighborhood sites. Also watch your number of links. Generally, the less the better. However, having no outbound links is not always good. I believe Google uses your outbound links as a way to position your site in the vast weave that is the Internet. Often times, Google can get a good feeling about what your site is about just by looking at who you link to. So again, select these links wisely understanding they will actually impact your SEO.

8) High-quality, original, content - I probably should have put this first because it can't be stressed enough for SEO. Your site needs to provide high-quality and original content. You will read this maybe a hundred times as you research SEO. Content is king. And I firmly believe this to be true. If you are under the impression that the internet is so big that search engines can't identify content as really unique, guess again. One afternoon spent playing with CopyScape will convince you that there is technology available today that is able to tell you if any given sentence has been repeated anywhere on the Internet. It's staggering, actually, when you really think about that. The volumes of data are just outrageous. But if CopyScape can do it, I'm betting that Google can do it also. And I firmly believe that your site receives a positive bump when Google determines that the content is original. Many people have asked me if using content that is repeated on other sites will penalize the site. I believe the answer is no, you will not be penalized by Google (copyright infringement is a completely different and very serious legal topic that I won't go into today). But I also believe that you won't get where you want to be by using content that already has high mileage. The other hot debate related to how sites using duplicate content can actually rank higher than the site where the content originated from. Yes - This has been demonstrated empirically a bunch of times. But you don't need to be too concerned with that for reasons we will get into later. Just keep your eye on the ball. Put in the time, energy and creativity it takes to create unique content and you will be rewarded. Plain and simple.

9) Appropriate amounts of content - Somewhat different from #8 is the issue of how much content to put on your site for good SEO. I don't believe there is a single magic answer as each site has a different objective. But as far as SEO goes, I generally believe the more the better (assuming you are following #8). Give those hungry spiders as much food for thought as you possibly can. But let me also qualify that statement. You need ensure that your content doesn't stray too far from the core message of your site. If it does, this can create confusion around what your site is really about. Tightly focused sites perform much better than more generically focused sites. For example, a site selling used Honda Civics that uses appropriate SEO strategies will probably get ranked higher and faster than a more generalized site selling all types of used cars. This is a generic statement, and there are many exceptions, but it's a reasonable place to start your thinking about niches and themes.

For more on SEO, visit HubShout.com.

Article Source:

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Monday, November 15, 2010

Leprechaun Repellent and Guaranteed SEO Companies - The Disturbing Link

Recruiting

Sentiment Analysis

Market Fluctuation

Recommendation Engines

Location-Based Marketing

More Business Resources from Mashable:

For more Business coverage:

Self-Serve “Real Time Ads”

Revenue Share

In-stream Advertising

Selling Traffic and Amplification

Making Ads More Social

Sponsored Contests and Social Campaigns

Leveraging Social Site Real Estate

What’s Next? Personalized Social Ads

More Social Media Resources from Mashable:

For more Social Media coverage:

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