Connect with us

MARKETING

What is Blockchain? | The Ultimate Guide

Published

on

What is Blockchain? | The Ultimate Guide

As cryptocurrency continues to be a hot topic, you may be wondering if your business can benefit from crypto like bitcoin.

But what if I told you the biggest opportunity for businesses of any kind is actually related to the technology that underlies bitcoin — blockchain. Blockchain, the public ledger that records all bitcoin transactions, is more than just a fad — it’s changing life as we know it.

Don’t believe me? Follow along to learn more about blockchain and how it works, who’s using it, and the future of the technology. Feel free to email, bookmark, or jump to the section that interests you most.

Advertisement

What is Blockchain?

Blockchain is a ledger system that uses an open, distributed record to keep track of transactions — transactions could mean cryptocurrencies, NFTs, medical information, voting or home records, and more.

These transactions get packaged into blocks — all of which get verified by other users in the system by completing math problems. Once a block gets verified, it cannot be altered and gets added to a chain of other permanent, previously verified blocks.

The records held within these blocks form a blockchain, and the blockchain’s users all keep track of this record. It’s basically a giant, shared ledger, but in practice, it’s much more exciting than that.

 

 

Let’s say the air fryer you bought last year isn’t all it’s cracked up to be and you hardly ever use it. You could use a third-party seller like eBay to sell it. These sellers act as the marketplace that connects you (the seller) to potential buyers — they make money by charging fees.

In this case, let’s pretend the buyer is from Germany. When you make a sale on eBay, the platform verifies the transaction with your bank and the purchaser’s bank. It also confirms your air fryer and the end buyer both exist. However, if you use blockchain technology to sell your air fryer, you can cut out all the middlemen while still maintaining a safe, speedy, and secure transaction — even internationally.

No eBay, no banks, no fees, and no exchange rate — it’s that easy.

History of Blockchain

Before we dive into exactly how blockchain makes this possible, let’s talk about the history of blockchain. In October 2008, the secretive founder of bitcoin Satoshi Nakamoto introduced the world to peer-to-peer electronic payments.

His cryptocurrency formed the world’s first blockchain. Because bitcoin’s software is open source — allowing anyone to see, reuse, and adapt the code behind it — it didn’t take long before users started modifying it for different purposes.

Advertisement

Early on, blockchain users mostly tried to make better versions of bitcoin. Litecoin, an alternative cryptocurrency developed by a former Google employee, aimed to provide faster transactions. Others, like the meme-inspired Dogecoin, were created for people turned off by bitcoin’s high price point.

Namecoin.org developed one of the first uses of blockchain for something other than cryptocurrencies. The technology uses blockchain to register .bit domain names as an alternative to the primary domain name management system.

Namecoin makes it extremely difficult for external players, like the government, to take control of websites. Because .bit domains get registered in a blockchain, they are nearly impossible to change without knowing the encryption key.

The next significant innovation came in 2013 when a small startup named Ethereum put out a paper outlining a way for developers to easily create entirely new blockchains without relying on bitcoin’s original code.

Two years later, Ethereum launched their new platform, allowing users to expand blockchain’s functionality beyond cryptocurrencies.

Advertisement

Currently, companies and individuals are exploring how to use blockchain technology in healthcare, energy, supply chain management, and many other industries —but more on that later.

How Does Blockchain Work?

There are different ways to set up a blockchain, Harvard Business Review laid out five principles that all blockchains have in common.

First, all blockchains use a distributed database — this means that every user in a blockchain can access the complete database, including its past transaction history.

This transparency allows users to verify any information they need and to complete transactions directly, without any intermediaries.

Advertisement

Secondly, any transactions or communications get conducted between peers. Each user stores records and sends information directly to all other parties in a blockchain.

Because of this technology, intermediaries and central storage institutions, like banks, are unnecessary. Users have all the information they need to vet other users, otherwise known as nodes.

Third, although blockchains are transparent, each user associated with a blockchain can remain anonymous. To protect users’ identities, each user has their own unique “30-plus-character alphanumeric address” that they use in place of a name. Users can choose to share their identity or remain anonymous with their blockchain address.

The alphanumeric addresses are also used to verify transactions. You may have heard the term “mining” associated with bitcoin. When someone “mines” bitcoin they aren’t digging around in the earth in search of a bitcoin filled hard drive … except for that one time.

Here’s how mining actually works: When someone wants to make a transaction and add a new record or “block” to the ledger, they first need to solve what is essentially a math problem.

Computers use their computing power to “mine” for the answer, which is vetted by the network of users. If the answer is correct, the new block is added to the ledger. A token, also known as a coin, is generated when this occurs —almost like a receipt to prove it happened.

Advertisement

Blcokchain hash features provide great security.

Fourth, because blockchain uses a digital ledger, the entire transactional process can be automated using algorithms. For example, when you buy a house, you pay for a lot of other small costs like title registration, mortgage lenders, inspections, and legal fees.

There are all these other people involved to provide access, regulate, and administer a sale from one person to another. But a lot of this complexity disappears with blockchain.

You can record property data and even build in digital rules — called smart contracts — that, once fulfilled, allow the system to automatically transfer a property title or money for purchase.

Image comparing blockchain to buying a house.

Fifth, once a record gets created, it cannot change. When miners verify a transaction, that record is shared with every other party in the blockchain as part of the decentralized ledger.

Part of each verified transaction is also used to generate the math puzzle for the next block in the chain. This means each transaction gets linked to the ones that came before it and all those transactions get stored across multiple computers with no single point of failure.

Blockchains can also be public or private —both types of networks share the five characteristics listed here but have one major difference. A public blockchain is open to the general public and anyone can join, execute and verify transactions, and everyone maintains a copy of the decentralized ledger.

Advertisement

The bitcoin blockchain is currently one of the largest examples of a public blockchain network. In a private blockchain, participation is limited to users who receive an invitation to join the network and are granted permission to enter. Think of it like the early days of Facebook when users needed email addresses from certain schools.

Aside from the increased security offered by private blockchains, they are also much more cost efficient since much less computing power is required to verify transactions in a smaller network.

Still confused? I don’t blame you. Here are some talking points on how blockchain works for your next cocktail party.

  1. Blockchains are completely transparent. Any user can view any transaction from now until the end of time.
  2. All transactions get completed between individual users. Say goodbye to intermediaries.
  3. Even though blockchains are transparent, a user’s identity doesn’t have to be. All users are assigned a public address to use in place of a name during transactions.
  4. Because blockchains live online, we can use algorithms to automate future transactions — just like you automatically pay your Netflix subscription every month.
  5. Once a block gets added to a blockchain, it’s there forever — no ifs, ands, or buts.

Got it? Let’s move on.

Benefits of Blockchain

You may be thinking, if blockchain is basically just another way to organize records, why are people so excited about it? Don’t worry! This is the part of the article where we talk about the benefits of blockchain and how it has the potential to change the world.

Advertisement

Blockchain Security

One of the largest benefits of blockchain is its ultra-secure network. Because data transmitted using blockchain is inherently encrypted, it’s much more secure than the standard username-password security system. However, the real security benefits come from blockchain’s network of users.

Decentralized data stored using blockchain makes it extremely difficult to hack into because no “single point of failure” exists. What does all this mean? Let’s say you have all your documents backed up on a single hard drive.

If that hard drive is lost, stolen, or destroyed, all of your documents are gone … forever. But if all your documents are saved on thousands of different hard drives, it’s unlikely that you’ll ever lose your data. That’s the power of blockchain security.

Under usual circumstances, to break into a blockchain, hackers would need to overwhelm over 50% of the network in less time than it takes to create a new block. The amount of computing power required to do this in most blockchain networks is tremendous.

Larger networks are much harder to hack because they are more decentralized and have more computers working to verify transactions.

That’s not to say hacks are impossible. Going as far back as 2017, data shows hackers have managed to steal around $2 billion worth of cryptocurrency as they vulnerabilities in the system. In addition to the 51% rule, the hacks can also occur if errors were made during the creation of the blockchain or if there was insufficient security during an exchange.

Advertisement

Fortunately, it’s easy to detect when a block has been tampered with thanks to hash functions. Hashes from one block are added to the data in the next block. Anyone who tries to alter a block will end up changing the hash completely, setting off a red flag and disabling the block completely.

Blockchain also offers anonymity. Without blockchain, systems use a variety of information like names, addresses, card numbers, and social security numbers to verify transactions. All this personal information is vulnerable to being stolen. In a blockchain, only the private key matters.

Each blockchain user has two keys: a public key and a private key. Their public key is derived from their private key using a mathematical formula and then combined with other information to form their public address for transactions.

Without the private key, it is impossible to verify transactions to the public address. This private key never gets shared with outsiders which means multiple complex formulas stand between a user’s private key and their public address.

You may be wondering if it’s possible to reverse the formula and uncover someone’s private key from their public key? The bad news is that it is possible. The good news is that the chances are very slim.

A private key number is between 1 and 2^256, meaning a hacker has to find the right number between 1 and quattuorvigintillion — a 78 digit number that is estimated to be bigger than the number of atoms in the universe.

Advertisement

Decentralization and Smart Contracts

The second benefit of blockchain comes from decentralization and smart contracts. Presently, smart contracts may represent the most powerful application for blockchain.

HubSpot’s former director of acquisition and resident blockchain expert Matthew Howells-Barby states: “One of the more immediate ways in which blockchain technology is going to impact SMBs is through smart contracts.

Smart contracts facilitate the creation of trustless digital contracts that can be used for all kinds of applications — something that has never been possible before without a third party being involved.

Imagine being able to create digital contracts with contractors that would automatically pay them once work has been completed to a satisfactory standard. This is one of the many applications that smart contracts offer.”

Essentially, smart contracts use blockchain to automate payments and transfers based on a predetermined set of conditions. Using smart contracts, you could automatically pay your electric bill once your electricity usage hits a certain amount.

The transaction would be sent securely to the power company and verified using blockchain. No more late fees, no more stolen financial information — you would never have to think about scheduling a payment again.

Advertisement

Once again, as more and more transactions are automated using smart contracts, the need for middlemen and outside organizations will diminish. Because information gets distributed across the entire network, it’s extremely difficult for one group to seize control of it.

Governments and individuals in positions of power will no longer be able to shut down sources they wish to repress because the information will exist on many computers across the network.

Speed and Efficiency

Third, blockchain is fast and efficient. Manual data entry is tedious and prone to error. Think about it. How many typos do you typically make writing an email? Most organizations maintain multiple record systems for different tasks.

For example, an ice cream store may use one record to track the amount of ice cream and supplies they purchase, another to track hours their employees work, and another to track sales.

Reviewing separate records takes up a lot of time. With blockchain, all this information gets stored and verified as it gets generated.

Blockchain’s verification speed has vast benefits. For example, a simple stock purchase can take up to a week to verify using current methods. Several forms, organizations, and a ridiculous amount of acronyms are involved in the process.

Advertisement

With blockchain, there is no need for third-party verification because all the information needed to complete and verify the transaction gets included in the ledger. That means stock transfers can happen almost instantaneously instead of a full week later. Talk about some serious returns!

Image showing the benefits of blockchain.

Applications of Blockchain

Okay, so we’ve talked about what blockchain is, how it works, and the benefits of using it, but is anyone actually using this technology? Like really using it — not just for trying to get bitcoin rich? The answer is an enthusiastic yes!

In simple terms, bitcoin is only one, tiny application supported by blockchain — there are endless possibilities for the technology. Let’s do a deeper dive on some other applications of blockchain.

FinTech

Payments and Cryptocurrencies

Let’s just get this out of the way — cryptocurrencies are indeed one of the most popular blockchain applications. I know, I know, I said I was going to talk about other applications of blockchain. I promise I will, but it’s impossible to talk about blockchain without taking a look at the application it was originally built for — bitcoin.

Partially because it was the first one and partially because it has the largest network of users, bitcoin is the most valuable cryptocurrency in terms of market capitalization.

Advertisement

In fact, bitcoin has become so popular that stores, restaurants, and even bars are starting to accept it as payment. In larger cities like New York, you can live your life only paying in bitcoin, though it isn’t always the most practical approach.

Because bitcoins trade on an open market, investors like the Winklevoss twins were able to make bets on future price movements. Before you go investing in bitcoin, don’t forget that the cryptocurrency is also infamous for its massive price swings.

Other cryptocurrencies like Ripple, Litecoin, and Ethereum can also be used to send payments or for market speculation, but these cryptocurrencies have their quirks. Ripple is positioned to speed up international transactions and reduce transaction fees.

The four to five seconds it takes Ripple to settle a transaction is faster than any other cryptocurrency and significantly faster than the expensive, multi-day process currently in use by most banks. For this reason, companies like top banks have started experimenting with Ripple for international transactions.

Litecoin is also useful for payments but is focused more on the everyday stuff than on purchases across borders. According to its founder Charlie Lee, “Litecoin is targeted more towards payments, faster transactions, and lower fees.”

Then there’s Ethereum and its cryptocurrency Ether. The smart contracts built into Ethereum’s code allow for a wide range of deals to occur automatically once pre-negotiated terms get met. This is a major stepping stone for using blockchain in industries outside of FinTech.

Advertisement

Trade

These cryptocurrencies and, more importantly, the blockchain behind them will have a tremendous impact on trade. Faster verification times, reduction or removal of exchange fees, and elimination of errors will make domestic and international trade easier than ever before.

By implementing blockchain within their internal financing unit, IBM was able to free up $100 million previously tied up in disputes. Imagine how much more could get done by using blockchain for the trillions of dollars in transactions that occur every day in the U.S. financial system alone.

Crowdfunding

Outside the worlds of insurance and international trade, blockchain will also create massive changes in the way businesses and startups raise capital. Sites like Kickstarter, founded in 2009, democratized fundraising by allowing just about anyone to find financial backing from a broad audience instead of traditional sources like banks and venture capital funds.

There’s also a built-in insurance policy since payment only gets collected for projects that meet their funding goal. For this service and for connecting entrepreneurs to potential funders, Kickstarter charges a 5% fee. As of April 2022, the platform has raised over $6.5 billion in funds for various projects.

With blockchain, these fees get eliminated since a network allows for immediate verification and smart contracts allow transactions to take place only once a project is fully funded. Some artists and startups are already experimenting with blockchain crowdfunding in the form of ICOs or initial coin offerings.

The virtual coins function the same way as bitcoin, and investors purchase these coins like shares of stock to invest in the business that offers them. However, unlike in the stock market, purchasing these coins does not mean a user purchased ownership rights — this makes ICOs an extremely risky investment.

Advertisement

Property and Identity

There are few things more important than protecting your identity and property records. Birth, marriage, and death certificates allow you to claim a variety of different rights, including citizenship, employment rights, and voting rights. Pretty important stuff, right?

But in many countries, personal and government records still exist only on paper. During the 2010 earthquake in Haiti, most of the country’s paper land registry files were destroyed — so there’s no way to know who owns what. This has opened the door for corruption and further loss. In the future, blockchain will provide stability during uncertainty.

In addition to being a digital fail-safe for important documents, blockchain is also an extremely secure identity management system. Think about how often you provide personal or financial information over the internet. Once a week? Once a day? Two hours ago when you bought those new boots during your lunch break? Hey, no judgment – I’m just looking out for your financial security.

Being able to accurately verify your identity is essential to all online transactions, but the data you provide can be vulnerable to attacks. Blockchain’s decentralized ledger and unique user addresses make it difficult for hackers to obtain your sensitive information.

Supply Chain

Thanks to smart contracts, many retailers are using blockchain to help simplify their supply chain processes. In early 2017, Maersk, one of the world’s largest container shipment operators, joined forces with IBM to create a digital blockchain-based supply chain system. The goal: To create a faster and more secure and cost-effective way to trade goods internationally.

IBM stated, “The costs associated with trade documentation processing and administration are estimated to be up to one-fifth the actual physical transportation costs. A single vessel can carry thousands of shipments, and on top of the costs to move the paperwork, the documentation to support it can be delayed, lost or misplaced, leading to further complications.” Talk about a logistical nightmare.

Advertisement

With blockchain, all parties involved in the supply chain can access any necessary documents and view transportation events in real time. All of the supply chain information is accurate and secure because no individual party can alter the blockchain without permission from others in the network. This transparency helps reduce shipment time, money, fraud, and errors — getting consumers the goods they need from around the world.

Healthcare

Healthcare – yeah, it’s complicated. It’s so complicated and confusing that I often find myself skipping the doctors just to avoid the massive amount of paperwork and stress that comes along with visiting the office. Don’t look at the screen like that – I know you’ve done it too.

Thankfully, blockchain is here to save the day or at least make these processes easier. Blockchain technology allows patients, insurers, and physicians to view and update medical records in a secure and timely fashion. This access to data can also help doctors recognize early indicators of disease or weakening health.

Blockchain can also help in other areas like reducing Medicare fraud, which has proven to be a costly issue. In 2021, the Department of Justice announced over 100 medical professionals were facing charges in connection to healthcare fraud schemes that cost about $1.4 billion in losses.

Blockchain even makes it possible to pay for procedures based on outcomes instead of predetermined rates. In fact, RoboMed Network other players in the healthcare market are already using blockchain to do this for thousands of patients.

Energy

Once energy enters into an electric grid, it’s impossible to tell if it was generated by a fossil fuel plant, nuclear power, or a renewable energy plant. To track the amount of energy coming from renewable sources, power plants use a complex, expensive system.

Advertisement

Cutting out intermediaries, reducing errors, and building a decentralized record for the sources of renewable energy with blockchain would remove many of these barriers — but it doesn’t end there.

Over the last several years, a new distributed grid has grown in size. This grid consists of solar panels on the roofs of homes and batteries from electric cars. When these systems produce more energy than they need, their owners can sell the excess power back to the power company, but it can take several months to see returns.

In 2017, LO3 Energy began experimenting with a blockchain powered microgrid in Brooklyn that lets users sell their excess energy to their neighbors. Because it’s easier to distribute electricity locally than to send it over long distances, decentralized blockchain microgrids could help prevent power outages and maximize energy use from distributed producers.

Investing in Blockchain

Blockchain is a tough topic to grasp, and it’ll likely be many years before the technology is widely adopted. Small- and medium-sized businesses should wait for blockchain technology to mature before worrying about how to adopt it.

However, there are some ways they can start experimenting with blockchain applications. In this section, we’ll walk through how businesses can start investing in blockchain in a smart, deliberate way.

According to Harvard Business Review, there are two factors to consider when thinking about how quickly new technology will impact a business: novelty and complexity. Novelty represents users’ familiarity with the application. The more novel or unfamiliar the technology is, the longer it’ll take to become commonplace.

Advertisement

Complexity is the number of people needed to adopt an application for it to have impact. For example, a dating app is useless unless a lot of people create profiles. How annoying would it be to swipe left on Chad 17 times before coming across an intriguing profile?

Graph of how blockchain affects novelty and complexity for consumers.

These two criteria help inform executives of the roadblocks they might face and the effort needed to implement a specific blockchain application. Take a look at the chart above. Businesses that are looking for a low barrier to entry should consider implementing single-use cases of blockchain. Single-use cases have a low degree of novelty and complexity.

So what exactly is a single-use case?

Accepting bitcoin payments. HBR states, “… bitcoin is growing fast and increasingly important in contexts such as instant payments and foreign currency and asset trading, where the present financial system has limitations.”

Accepting cryptocurrencies as a form of payment makes it easier for customers all over the world to quickly and securely purchase your products.

If you start accepting bitcoin as alternative payment, your business could then start experimenting with a blockchain application that is increasingly novel but still has a low level of complexity — a private blockchain ledger to record all transactions.

Advertisement

Once you have a good handle on these more simple applications, consider using more complex blockchain applications like smart contracts. The possibilities for how blockchain can help improve business processes are endless — it’s just a matter of how much effort and money you want to invest in an application right away.

Conclusion: The Future of Blockchain

That was a lot. And it’s okay if you don’t understand all of the intricacies of blockchain or aren’t ready to start incorporating it into your business strategy just yet. It’ll take many years and buy-in from numerous different industries before blockchain becomes commonplace. And while we don’t recommend SMBs worry too much about blockchain just yet, it’s important to keep an eye on the emerging tech as larger enterprise businesses start developing more blockchain applications.

So the next time you find yourself sinking into a deep hole of depression because you didn’t scoop up bitcoin while the iron was hot, remember the most rewarding technology — blockchain — is still to reach its full potential.

Editor’s note: This post was originally published in September 2019 and has been updated for comprehensiveness.

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address

MARKETING

The Current State of Google’s Search Generative Experience [What It Means for SEO in 2024]

Published

on

person typing on laptop with

Search


By Tinuiti Team

SEO enthusiasts, known for naming algorithm updates after animals and embracing melodrama, find themselves in a landscape where the “adapt or die” mantra prevails. So when Google announced the launch of its Search Generative Experience (SGE) in May of 2023 at Google/IO, you can imagine the reaction was immense.

Although SGE has the potential to be a truly transformative force in the landscape, we’re still waiting for SGE to move out of the Google Labs Sandbox and integrate into standard search results. 

Advertisement

Curious about our current take on SGE and its potential impact on SEO in the future? Read on for more.

Decoding Google’s Defensive Move

In response to potential threats from competitors like ChatGPT, Bing, TikTok, Reddit, and Amazon, Google introduced SGE as a defensive maneuver. However, its initial beta release raised questions about its readiness and global deployment.

ChatGPT provided an existential threat that had the potential to eat into Google’s market share. When Bing started incorporating it into its search results, it was one of the most significant wins for Bing in a decade. In combination with threats from TikTok, Reddit, and Amazon, we see a more fractured search landscape less dominated by Google. Upon its launch, the expectation was that Google would push its SGE solution globally, impact most queries, and massively shake up organic search results and strategies to improve organic visibility.

Now, industry leaders are starting to question if Google is better off leaving SGE in the testing ground in Google labs. According to Google’s recent update, it appears that SGE will remain an opt-in experience in Google Labs (for at least the short term). If SGE was released, there could be a fundamental reset in understanding SEO. Everything from organic traffic to optimization tactics to tracking tools would need adjustments for the new experience. Therefore, the prospect of SGE staying in Google Labs is comforting if not entirely reliable. 

The ever-present option is that Google can change its mind at any point and push SGE out broadly as part of its standard search experience. For this reason, we see value in learning from our observations with SGE and continuing to stay on top of the experience.

SGE User Experience and Operational Challenges

If you’ve signed up for search labs and have been experimenting with SGE for a while, you know firsthand there are various issues that Google should address before rolling it out broadly to the public.

Advertisement

At a high level, these issues fall into two broad categories including user experience issues and operational issues.

Below are some significant issues we’ve come across, with Google making notable progress in addressing certain ones, while others still require improvement:

  • Load time – Too many AI-generated answers take longer to load than a user is willing to wait. Google recommends less than a 3-second load time to meet expectations. They’ll need to figure out how to consistently return results quickly if they want to see a higher adoption rate.
  • Layout – The SGE layout is massive. We believe any major rollout will be more streamlined to make it a less intrusive experience for users and allow more visibility for ads, and if we’re lucky, organic results. Unfortunately, there is still a decent chance that organic results will move below the fold, especially on mobile devices. Recently, Google has incorporated more results where users are prompted to generate the AI result if they’d like to see it. The hope is Google makes this the default in the event of a broad rollout where users can generate an AI result if they want one instead of assuming that’s what a user would like to see. 
  • Redundancy – The AI result duplicates features from the map pack and quick answer results. 
  • Attribution – Due to user feedback, Google includes sources on several of their AI-powered overviews where you can see relevant web pages if there is an arrow next to the result. Currently, the best way to appear as one of these relevant pages is to be one of the top-ranked results, which is convenient from an optimization standpoint. Changes to how attribution and sourcing are handled could heavily impact organic strategies. 

On the operational side, Google also faces significant hurdles to making SGE a viable product for its traditional search product. The biggest obstacle appears to be making the cost associated with the technology worth the business outcomes it provides. If this was a necessary investment to maintain market share, Google might be willing to eat the cost, but if their current position is relatively stable, Google doesn’t have much of an incentive to take on the additional cost burden of heavily leveraging generative AI while also presumably taking a hit to their ad revenue. Especially since slow user adoption doesn’t indicate this is something users are demanding at the moment.

While the current experience of SGE is including ads above the generative results now, the earliest iterations didn’t heavily feature sponsored ads. While they are now included, the current SGE layout would still significantly disrupt the ad experience we’re used to. During the Google I/O announcement, they made a statement to reassure advertisers they would be mindful of maintaining a distinct ad experience in search.  

“In this new generative experience, Search ads will continue to appear in dedicated ad slots throughout the page. And we’ll continue to uphold our commitment to ads transparency and making sure ads are distinguishable from organic search results” – Elizabeth Reid, VP, Search at Google

Google is trying to thread a delicate needle here of staying on the cutting edge with their search features, while trying not to upset their advertisers and needlessly hinder their own revenue stream. Roger Montti details more of the operational issues in a recent article digging into the surprising reasons SGE is stuck in Google Labs.

He lists three big problems that need to be solved before SGE will be integrated into the foreground of search:

Advertisement
  1. Large Language Models being inadequate as an information retrieval system
  2. The inefficiency and cost of transformer architecture
  3. Hallucinating (providing inaccurate answers)

Until SGE provides more user value and checks more boxes on the business sense side, the traditional search experience is here to stay. Unfortunately, we don’t know when or if Google will ever feel confident they’ve addressed all of these concerns, so we’ll need to stay prepared for change.

Experts Chime in on Search Generative Experience

Our team has been actively engaging with SGE, here’s a closer look at their thoughts and opinions on the experience so far:

“With SGE still in its early stages, I’ve noticed consistent changes in how the generative results are produced and weaved naturally into the SERPs. Because of this, I feel it is imperative to stay on top of these on-going changes to ensure we can continue to educate our clients on what to expect when SGE is officially incorporated into our everyday lives. Although an official launch date is currently unknown, I believe proactively testing various prompt types and recording our learnings is important to prepare our clients for this next evolution of Google search.”

– Jon Pagano, SEO Sr. Specialist at Tinuiti

“It’s been exciting to watch SGE grow through different variations over the last year, but like other AI solutions its potential still outweighs its functionality and usefulness. What’s interesting to see is that SGE doesn’t just cite its sources of information, but also provides an enhanced preview of each webpage referenced. This presents a unique organic opportunity where previously untouchable top 10 rankings are far more accessible to the average website. Time will tell what the top ranking factors for SGE are, but verifiable content with strong E-E-A-T signals will be imperative.”

–Kate Fischer, SEO Specialist at Tinuiti

“Traditionally, AI tools were very good at analytical tasks. With the rise of ChatGPT, users can have long-form, multi-question conversations not yet available in search results. When, not if, released, Google’s Generative Experience will transform how we view AI and search. Because there are so many unknowns, some of the most impactful ways we prepare our clients are to discover and develop SEO strategies that AI tools can’t directly disrupt, like mid to low funnel content.”

– Brandon Miller, SEO Specialist at Tinuiti

“SGE is going to make a huge impact on the ecommerce industry by changing the way users interact with the search results. Improved shopping experience will allow users to compare products, price match, and read reviews in order to make it quicker and easier for a user to find the best deals and purchase. Although this leads to more competitive results, it also improves organic visibility and expands our product reach. It is more important than ever to ensure all elements of a page are uniquely and specifically optimized for search. With the SGE updates expected to continue to impact search results, the best way to stay ahead is by focusing on strong user focused content and detailed product page optimizations.” 

– Kellie Daley, SEO Sr. Specialist at Tinuiti

Navigating the Clash of Trends

One of the most interesting aspects of the generative AI trend in search is that it appears to be in direct opposition to other recent trends.

Advertisement

One of the ways Google has historically evaluated the efficacy of its search ranking systems is through the manual review of quality raters. In their quality rater guidelines, raters were instructed to review for things like expertise, authority, and trustworthiness (EAT) in results to determine if Google results are providing users the information they deserve. 

In 2022, Google updated their search guidelines to include another ‘e’ in the form of experience (EEAT). In their words, Google wanted to better assess if the content a user was consuming was created by someone with, “a degree of experience, such as with actual use of a product, having actually visited a place or communicating what a person has experienced. There are some situations where really what you value most is content produced by someone who has firsthand, life experience on the topic at hand.” 

Generative AI results, while cutting-edge technology and wildly impressive in some cases, stand in direct opposition to the principles of E-E-A-T. That’s not to say that there’s no room for both in search, but Google will have to determine what it thinks users value more between these competing trends. The slow adoption of SGE could be an indication that a preference for human experience, expertise, authority, and trust is winning round one in this fight. 

Along these lines, Google is also diversifying its search results to cater to the format in which users get their information. This takes the form of their Perspectives Filter. Also announced at Google I/O 2023, the perspectives filter incorporates more video, image, and discussion board posts from places like TikTok, YouTube, Reddit, and Quora. Once again, this trend shows the emphasis and value searchers place on experience and perspective. Users value individual experience over the impersonal conveyance of information. AI will never have these two things, even if it can provide a convincing imitation.

The current iteration of SGE seems to go too far in dismissing these trends in favor of generative AI. It’s an interesting challenge Google faces. If they don’t determine the prevailing trend correctly, veering too far in one direction can push more market share to ChatGPT or platforms like YouTube and TikTok.

Final Thoughts

The range of outcomes remains broad and fascinating for SGE. We can see this developing in different ways, and prognostication offers little value, but it’s invaluable to know the potential outcomes and prepare for as many of them as possible.

Advertisement

It’s critical that you or your search agency be interacting and experimenting with SGE because:

  • The format and results will most likely continue to see significant changes
  • This space moves quickly and it’s easy to fall behind
  • Google may fix all of the issues with SGE and decide to push it live, changing the landscape of search overnight
  • SGE experiments could inform other AI elements incorporated into the search experience

Ultimately, optimizing for the specific SGE experience we see now is less important because we know it will inevitably continue changing. We see more value in recognizing the trends and problems Google is trying to solve with this technology. With how quickly this space moves, any specifics mentioned in this article could be outdated in a week. That’s why focusing on intention and process is important at this stage of the game.

By understanding the future needs and wants SGE is attempting to address, we can help you future-proof your search strategies as much as possible. To some extent we’re always at the whims of the algorithm, but by maintaining a user-centric approach, you can make your customers happy, regardless of how they find you.

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

MARKETING

How to create editorial guidelines that are useful + template

Published

on

How to create editorial guidelines that are useful + template

Before diving in to all things editorial guidelines, a quick introduction. I head up the content team here at Optimizely. I’m responsible for developing our content strategy and ensuring this aligns to our key business goals.

Here I’ll take you through the process we used to create new editorial guidelines; things that worked well and tackle some of the challenges that come with any good multi – stakeholder project, share some examples and leave you with a template you can use to set your own content standards.

What are editorial guidelines?

Editorial guidelines are a set of standards for any/all content contributors, etc. etc. This most often includes guidance on brand, tone of voice, grammar and style, your core content principles and the types of content you want to produce.

Editorial guidelines are a core component of any good content strategy and can help marketers achieve the following in their content creation process:

Advertisement
  • Consistency: All content produced, regardless of who is creating it, maintains a consistent tone of voice and style, helping strengthen brand image and making it easier for your audience to recognize your company’s content  
  • Quality Control: Serves as a ‘North Star’ for content quality, drawing a line in the sand to communicate the standard of content we want to produce 
  • Boosts SEO efforts: Ensures content creation aligns with SEO efforts, improving company visibility and increasing traffic 
  • Efficiency: With clear guidelines in place, content creators – external and internal – can work more efficiently as they have a clear understanding of what is expected of them 

Examples of editorial guidelines

There are some great examples of editorial guidelines out there to help you get started.

Here are a few I used: 

1. Editorial Values and Standards, the BBC

 

Ah, the Beeb. This really helped me channel my inner journalist and learn from the folks that built the foundation for free quality journalism. 

How to create editorial guidelines, Pepperland Marketing

pepperlandmarketingblogpostoneditorialguidelines

After taking a more big picture view I recognized needed more focused guidance on the step by step of creating editorial guidelines.

I really liked the content the good folks at Pepperland Marketing have created, including a free template – thanks guys! – and in part what inspired me to create our own free template as a way of sharing learnings and helping others quickstart the process of creating their own guidelines.

Advertisement

 

3. Writing guidelines for the role of AI in your newsroom?… Nieman Lab

NiemanLabsguidanceonroleofaiinyournewsroom

As well as provide guidance on content quality and the content creation process, I wanted to tackle the thorny topic of AI in our editorial guidelines. Specifically, to give content creators a steer on ‘fair’ use of AI when creating content, to ensure creators get to benefit from the amazing power of these tools, but also that content is not created 100% by AI and help them understand why we feel that contravenes our core content principles of content quality. 

So, to learn more I devoured this fascinating article, sourcing guidance from major media outlets around the world. I know things change very quickly when it comes to AI, but I highly encourage reading this and taking inspiration from how these media outlets are tackling this topic. 

Learn more: The Marketer’s Guide to AI-generated content

Why did we decide to create editorial guidelines?

1. Aligning content creators to a clear vision and process

Optimizely as a business has undergone a huge transformation over the last 3 years, going through rapid acquisition and all the joys and frustrations that can bring. As a content team, we quickly recognized the need to create a set of clear and engaging guidelines that helps content creators understand how and where they can contribute, and gave a clear process to follow when submitting a content idea for consideration. 

2. Reinvigorated approach to brand and content 

As a brand Optimizely is also going through a brand evolution – moving from a more formal, considered tone of voice to one that’s much more approachable, down to earth and not afraid to use humor, different in content and execution. 

Advertisement

See, our latest CMS campaign creative:

Mock ups of Optimizely CMS campaign creative

It’s pretty out there in terms of creative and messaging. It’s an ad campaign that’s designed to capture attention yes, but also – to demonstrate our abilities as a marketing team to create this type of campaign that is normally reserved for other more quote unquote creative industries. 

We wanted to give guidance to fellow content creators outside the team on how they can also create content that embraces this evolved tone of voice, while at the same time ensuring content adheres to our brand guidelines.

3. Streamline content creation process

Like many global enterprises we have many different content creators, working across different time zones and locations. Documenting a set of guidelines and making them easily available helps content creators quickly understand our content goals, the types of content we want to create and why. It would free up content team time spent with individual contributors reviewing and editing submissions, and would ensure creation and optimization aligns to broader content & business goals.

It was also clear that we needed to document a process for submitting content ideas, so we made sure to include this in the guidelines themselves to make it easy and accessible for all contributors. 

4. 2023 retrospective priority 

As a content team we regularly review our content strategy and processes to ensure we’re operating as efficiently as possible.

Advertisement

In our last retrospective. I asked my team ‘what was the one thing I could do as a manager to help them be more impactful in their role?’

Editorial guidelines was the number 1 item on their list. 

So off we went… 

What we did

  • Defined a discrete scope of work for the first version of the editorial guidelines, focusing on the Blog and Resources section of the website. This is where the content team spends most of its time and so has most involvement in the content creation process. Also where the most challenging bottlenecks have been in the past
  • Research. Reviewed what was out there, got my hands on a few free templates and assembled a framework to create a first version for inputs and feedback 
  • Asked content community – I put a few questions out to my network on LinkedIn on the topic of content guidelines and content strategy, seeking to get input and guidance from smart marketers.  

linkedinpostoneditorialguidelines

Combining two of my great passions in life – content strategy and Arrested Development – in one LinkedIn post (Feb 2024)

  • Invited feedback: Over the course of a few weekswe invited collaborators to comment in a shared doc as a way of taking iterative feedback, getting ideas for the next scope of work, and also – bringing people on the journey of creating the guidelines. Look at all those reviewers! Doing this within our Content Marketing Platform (CMP) ensured that all that feedback was captured in one place, and that we could manage the process clearly, step by step:

Optimizelycmpscreenshotofeditorialguidelines

Look at all those collaborators! Thanks guys! And all of those beautiful ticks, so satisfying. So glad I could crop out the total outstanding tasks for this screen grab too (Source – Optimizely CMP) 

  • Updated content workflow: Now we have clear, documented guidance in place, we’ve included this as a step – the first step – in the workflow used for blog post creation: 

Optimizely CMP screenshot of editorial guideline review

Source: Optimizely CMP

Advertisement

Results

It’s early days but we’re already seeing more engagement with the content creation process, especially amongst the teams involved in building the guidelines (which was part of the rationale in the first place :))

Screenshot of teams message editorial guidelines

Source: My Teams chat 

It’s inspired teams to think differently about the types of content we want to produce going forwards – for the blog and beyond.

I’d also say it’s boosted team morale and collaboration, helping different teams work together on shared goals to produce better quality work.

What’s next?

We’re busy planning wider communication of the editorial guidelines beyond marketing. We’ve kept the original draft and regularly share this with existing and potential collaborators for ongoing commentary, ideas and feedback.

Creating guidelines has also sparked discussion about the types of briefs and templates we want and need to create in CMP to support creating different assets. Finding the right balance between creative approach and using templates to scale content production is key. 

Advertisement

We’ll review these guidelines on a quarterly basis and evolve as needed, adding new formats and channels as we go.

Key takeaways

  • Editorial guidelines are a useful way to guide content creators as part of your overall content strategy
  • Taking the time to do research upfront can help accelerate seemingly complex projects. Don’t be afraid to ask your community for inputs and advice as you create
  • Keep the scope small at first rather than trying to align everything all at once. Test and learn as you go
  • Work with stakeholders to build guidelines from the ground up to ensure you create a framework that is useful, relevant and used

And lastly, here’s that free template we created to help you build or evolve your own editorial guidelines!

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

MARKETING

Effective Communication in Business as a Crisis Management Strategy

Published

on

Effective Communication in Business as a Crisis Management Strategy

Everyday business life is full of challenges. These include data breaches, product recalls, market downturns and public relations conflicts that can erupt at any moment. Such situations pose a significant threat to a company’s financial health, brand image, or even its further existence. However, only 49% of businesses in the US have a crisis communications plan. It is a big mistake, as such a strategy can build trust, minimize damage, and even strengthen the company after it survives the crisis. Let’s discover how communication can transform your crisis and weather the chaos.

The ruining impact of the crisis on business

A crisis can ruin a company. Naturally, it brings losses. But the actual consequences are far worse than lost profits. It is about people behind the business – they feel the weight of uncertainty and fear. Employees start worrying about their jobs, customers might lose faith in the brand they once trusted, and investors could start looking elsewhere. It can affect the brand image and everything you build from the branding, business logo, social media can be ruined. Even after the crisis recovery, the company’s reputation can suffer, and costly efforts might be needed to rebuild trust and regain momentum. So, any sign of a coming crisis should be immediately addressed. Communication is one of the crisis management strategies that can exacerbate the situation.  

The power of effective communication

Even a short-term crisis may have irreversible consequences – a damaged reputation, high employee turnover, and loss of investors. Communication becomes a tool that can efficiently navigate many crisis-caused challenges:

  • Improved trust. Crisis is a synonym for uncertainty. Leaders may communicate trust within the company when the situation gets out of control. Employees feel valued when they get clear responses. The same applies to the customers – they also appreciate transparency and are more likely to continue cooperation when they understand what’s happening. In these times, documenting these moments through event photographers can visually reinforce the company’s messages and enhance trust by showing real, transparent actions.
  • Reputation protection. Crises immediately spiral into gossip and PR nightmares. However, effective communication allows you to proactively address concerns and disseminate true information through the right channels. It minimizes speculation and negative media coverage.
  • Saved business relationships. A crisis can cause unbelievable damage to relationships with employees, customers, and investors. Transparent communication shows the company’s efforts to find solutions and keeps stakeholders informed and engaged, preventing misunderstandings and painful outcomes.
  • Faster recovery. With the help of communication, the company is more likely to receive support and cooperation. This collaborative approach allows you to focus on solutions and resume normal operations as quickly as possible.

It is impossible to predict when a crisis will come. So, a crisis management strategy mitigates potential problems long before they arise.

Tips on crafting an effective crisis communication plan.

To effectively deal with unforeseen critical situations in business, you must have a clear-cut communication action plan. This involves things like messages, FAQs, media posts, and awareness of everyone in the company. This approach saves precious time when the crisis actually hits. It allows you to focus on solving the problem instead of intensifying uncertainty and panic. Here is a step-by-step guide.  

Identify your crisis scenarios.

Being caught off guard is the worst thing. So, do not let it happen. Conduct a risk assessment to pinpoint potential crises specific to your business niche. Consider both internal and external factors that could disrupt normal operations or damage the online reputation of your company. Study industry-specific issues, past incidents, and current trends. How will you communicate in each situation? Knowing your risks helps you prepare targeted communication strategies in advance. Of course, it is impossible to create a perfectly polished strategy, but at least you will build a strong foundation for it.

Advertisement

Form a crisis response team.

The next step is assembling a core team. It will manage communication during a crisis and should include top executives like the CEO, CFO, and CMO, and representatives from key departments like public relations and marketing. Select a confident spokesperson who will be the face of your company during the crisis. Define roles and responsibilities for each team member and establish communication channels they will work with, such as email, telephone, and live chat. Remember, everyone in your crisis response team must be media-savvy and know how to deliver difficult messages to the stakeholders.

Prepare communication templates.

When a crisis hits, things happen fast. That means communication needs to be quick, too. That’s why it is wise to have ready-to-go messages prepared for different types of crises your company may face. These messages can be adjusted to a particular situation when needed and shared on the company’s social media, website, and other platforms right away. These templates should include frequently asked questions and outline the company’s general responses. Make sure to approve these messages with your legal team for accuracy and compliance.

Establish communication protocols.

A crisis is always chaotic, so clear communication protocols are a must-have. Define trigger points – specific events that would launch the crisis communication plan. Establish a clear hierarchy for messages to avoid conflicting information. Determine the most suitable forms and channels, like press releases or social media, to reach different audiences. Here is an example of how you can structure a communication protocol:

  • Immediate alert. A company crisis response team is notified about a problem.  
  • Internal briefing.  The crisis team discusses the situation and decides on the next steps.  
  • External communication. A spokesperson reaches the media, customers, and suppliers.
  • Social media updates. A trained social media team outlines the situation to the company audience and monitors these channels for misinformation or negative comments.
  • Stakeholder notification. The crisis team reaches out to customers and partners to inform them of the incident and its risks. They also provide details on the company’s response efforts and measures.
  • Ongoing updates. Regular updates guarantee transparency and trust and let stakeholders see the crisis development and its recovery.

Practice and improve.

Do not wait for the real crisis to test your plan. Conduct regular crisis communication drills to allow your team to use theoretical protocols in practice. Simulate different crisis scenarios and see how your people respond to these. It will immediately demonstrate the strong and weak points of your strategy. Remember, your crisis communication plan is not a static document. New technologies and evolving media platforms necessitate regular adjustments. So, you must continuously review and update it to reflect changes in your business and industry.

Wrapping up

The ability to handle communication well during tough times gives companies a chance to really connect with the people who matter most—stakeholders. And that connection is a foundation for long-term success. Trust is key, and it grows when companies speak honestly, openly, and clearly. When customers and investors trust the company, they are more likely to stay with it and even support it. So, when a crisis hits, smart communication not only helps overcome it but also allows you to do it with minimal losses to your reputation and profits.

Source link

Keep an eye on what we are doing
Be the first to get latest updates and exclusive content straight to your email inbox.
We promise not to spam you. You can unsubscribe at any time.
Invalid email address
Continue Reading

Trending

Follow by Email
RSS