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Google countered that trend with their big push for universal paid search in 2010. It was, perhaps, the most radical evolution to the paid search results since the introduction of Quality Score. Consider the changes:

New ad formats: Text is no longer the exclusive medium for advertising on Google. No format exemplifies that more than Product List Ads (and their cousin, Product Extensions). There is no headline, copy or display URL. Instead, it's just a product image, name, price and vendor slotted in the highest positions on the right side. What's more, you don't choose keywords. We also saw display creep into image search results with Image Search Ads and traditional display ads.

New calls-to-action: The way you satisfy your search with advertising on Google has evolved as well. Most notably, through the introduction of click-to-call as an option for mobile search ads (as well as the limited release AdWords call metrics). Similarly, more of the site experience is being pulled into the search results. The beta Comparison Ads creates a marketplace for loan and credit card comparison all on Google. The call to action is comparison and filtering, not just clicking on an ad.

New buying/monetization models: Cost-per-click (CPC) and cost-per-thousand-impressions (CPM) are no longer the only ways you can buy. Comparison Ads are sold on a cost-per-lead basis. Product listing ads are sold on a cost-per-acquisition (CPA) basis for some advertisers (CPC for most).

New display targeting options: Remarketing (a.k.a. retargeting) brought highly focused display buys to the AdWords interface. Specifically, the ability to only show display ads to segments of people who visit your site, in many cases after clicking on a text ad.

New advertising automation: In a move that radically simplifies advertising for small businesses, Google began testing Google Boost. It involves no keyword research and no bidding. If you have a Google Places page, you can even do it without a website. It's virtually hands-off advertising for SMBs.

Of those changes, Google Product Listing Ads and Google Boost offer the best glimpse into the future of paid search without keywords. They're notable for dramatic departures in every step of how you advertise on Google: Targeting: Automated targeting toward certain audiences as determined by Google vs. keywords chosen by the advertiser. Ads: Product listing ads bring a product search like result in the top position in the right column and Boost promotes a map-like result in a preferred position above organic results. Pricing: CPA and monthly budget caps replace daily budgets and CPC bids.

For Google to continue their pace of growth, they need two things: Another line of business to complement AdWords, and display advertising is it. They've pushed even more aggressively into the channel, most notably with the acquisition of Invite Media, a demand side platform. To remove obstacles to profit and incremental growth within AdWords. These barriers are primarily how wide advertisers target and how much they pay for the people they reach (see: "Why Google Wants to Eliminate Bidding In Exchange for Your Profits").

We gave 20 of our engineers laptops with a fresh install of Microsoft Windows running Internet Explorer 8 with Bing Toolbar installed. As part of the install process, we opted in to the “Suggested Sites” feature of IE8, and we accepted the default options for the Bing Toolbar.We asked these engineers to enter the synthetic queries into the search box on the Google home page, and click on the results, i.e., the results we inserted. We were surprised that within a couple weeks of starting this experiment, our inserted results started appearing in Bing. Below is an example: a search for [hiybbprqag] on Bing returned a page about seating at a theater in Los Angeles. As far as we know, the only connection between the query and result is Google’s result page (shown above).

BMW acknowledged that it had set up “doorway pages,” which exist just to attract search engines and then redirect traffic to a different site. The company at the time said it had no intention of deceiving users, adding “if Google says all doorway pages are illegal, we have to take this into consideration.”

The Times sent Google the evidence it had collected about the links to JCPenney.com. Google promptly set up an interview with Matt Cutts, the head of the Webspam team at Google, and a man whose every speech, blog post and Twitter update is parsed like papal encyclicals by players in the search engine world.

He said Google had detected previous guidelines violations related to JCPenney.com on three occasions, most recently last November. Each time, steps were taken that reduced Penney’s search results — Mr. Cutts avoids the word “punished” — but Google did not later “circle back” to the company to see if it was still breaking the rules, he said.

He and his team had missed this recent campaign of paid links, which he said had been up and running for the last three to four months. “Do I wish our system had detected things sooner? I do,” he said. “But given the one billion queries that Google handles each day, I think we do an amazing job.”

Mr. Cutts sounded remarkably upbeat and unperturbed during this conversation, which was a surprise given that we were discussing a large, sustained effort to snooker his employer. Asked about his zenlike calm, he said the company strives not to act out of anger.

PENNEY reacted to this instant reversal of fortune by, among other things, firing its search engine consulting firm, SearchDex. Executives there did not return e-mail or phone calls.

“Am I happy this happened?” he later asked. “Absolutely not. Is Google going to take strong corrective action? We absolutely will.” And the company did. On Wednesday evening, Google began what it calls a “manual action” against Penney, essentially demotions specifically aimed at the company.

At 7 p.m. Eastern time on Wednesday, J. C. Penney was still the No. 1 result for “Samsonite carry on luggage.” Two hours later, it was at No. 71.

Despite the cowboy outlaw connotations, black-hat services are not illegal, but trafficking in them risks the wrath of Google. The company draws a pretty thick line between techniques it considers deceptive and “white hat” approaches, which are offered by hundreds of consulting firms and are legitimate ways to increase a site’s visibility. Penney’s results were derived from methods on the wrong side of that line, says Mr. Pierce. He described the optimization as the most ambitious attempt to game Google’s search results that he has ever seen.

TO understand the strategy that kept J. C. Penney in the pole position for so many searches, you need to know how Web sites rise to the top of Google’s results. We’re talking, to be clear, about the “organic” results — in other words, the ones that are not paid advertisements. In deriving organic results, Google’s algorithm takes into account dozens of criteria, many of which the company will not discuss.

But it has described one crucial factor in detail: links from one site to another. If you own a Web site, for instance, about Chinese cooking, your site’s Google ranking will improve as other sites link to it. The more links to your site, especially those from other Chinese cooking-related sites, the higher your ranking. In a way, what Google is measuring is your site’s popularity by polling the best-informed online fans of Chinese cooking and counting their links to your site as votes of approval.

But even links that have nothing to do with Chinese cooking can bolster your profile if your site is barnacled with enough of them. And here’s where the strategy that aided Penney comes in. Someone paid to have thousands of links placed on hundreds of sites scattered around the Web, all of which lead directly to JCPenney.com.

Who is that someone? A spokeswoman for J. C. Penney, Darcie Brossart, says it was not Penney.

“J. C. Penney did not authorize, and we were not involved with or aware of, the posting of the links that you sent to us, as it is against our natural search policies,” Ms. Brossart wrote in an e-mail. She added, “We are working to have the links taken down.”

Using an online tool called Open Site Explorer, Mr. Pierce found 2,015 pages with phrases like “casual dresses,” “evening dresses,” “little black dress” or “cocktail dress.” Click on any of these phrases on any of these 2,015 pages, and you are bounced directly to the main page for dresses on JCPenney.com.

Some of the 2,015 pages are on sites related, at least nominally, to clothing. But most are not. The phrase “black dresses” and a Penney link were tacked to the bottom of a site called nuclear.engineeringaddict.com. “Evening dresses” appeared on a site called casino-focus.com. “Cocktail dresses” showed up on bulgariapropertyportal.com. ”Casual dresses” was on a site called elistofbanks.com. “Semi-formal dresses” was pasted, rather incongruously, on usclettermen.org.

the query "stem cells" might produce diametrically opposed results for scientists who support stem-cell research and activists who oppose it.

"Proof of climate change" might turn up different results for an environmental activist and an oil-company executive.

majority of us assume search engines are unbiased. But that may be just because they're increasingly biased to share our own views. More and more, your computer monitor is a kind of one-way mirror, reflecting your own interests while algorithmic observers watch what you click. Google's announcement marked the turning point of an important but nearly invisible revolution in how we consume information. You could say that on 4 December 2009 the era of personalisation began.

We are predisposed to respond to a pretty narrow set of stimuli – if a piece of news is about sex, power, gossip, violence, celebrity or humour, we are likely to read it first. This is the content that most easily makes it into the filter bubble. It's easy to push "Like" and increase the visibility of a friend's post about finishing a marathon or an instructional article about how to make onion soup. It's harder to push the "Like" button on an article titled "Darfur sees bloodiest month in two years". In a personalised world, important but complex or unpleasant issues – the rising prison population, for example, or homelessness – are less likely to come to our attention at all.

As a consumer, it's hard to argue with blotting out the irrelevant and unlikable. But what is good for consumers is not necessarily good for citizens. What I seem to like may not be what I actually want, let alone what I need to know to be an informed member of my community or country. "It's a civic virtue to be exposed to things that appear to be outside your interest," technology journalist Clive Thompson told me. Cultural critic Lee Siegel puts it a different way: "Customers are always right, but people aren't."

Personalisation is based on a bargain. In exchange for the service of filtering, you hand large companies an enormous amount of data about your daily life – much of which you might not trust friends with.

To be the author of your life, professor Yochai Benkler argues, you have to be aware of a diverse array of options and lifestyles. When you enter a filter bubble, you're letting the companies that construct it choose which options you're aware of. You may think you're the captain of your own destiny, but personalisation can lead you down a road to a kind of informational determinism in which what you've clicked on in the past determines what you see next – a web history you're doomed to repeat. You can get stuck in a static, ever- narrowing version of yourself – an endless you-loop.

Asked if Penney received any breaks because of the money it has spent on ads, Mr. Cutts said, “I’ll give a categorical denial.” He then made an impassioned case for Google’s commitment to separating the money side of the business from the search side. The former has zero influence on the latter, he said.

“There is a very long history at Google of saying ‘We are not going to worry about short-term revenue.’ ” He added: “We rely on the trust of our users. We realize the responsibility that we have to our users.”

He noted, too, that before The Times presented evidence of the paid links to JCPenney.com, Google had just begun to roll out an algorithm change that had a negative effect on Penney’s search results. (

True, JCPenney.com’s showing in Google searches had declined slightly by Feb. 8, as the algorithm change began to take effect. In “comforter sets,” Penney went from No. 1 to No. 7. In “sweater dresses,” from No. 1 to No. 10. But the real damage to Penney’s results began when Google started that “manual action.” The decline can be charted: On Feb. 1, the average Penney position for 59 search terms was 1.3.

MR. CUTTS said he did not plan to write about Penney’s situation, as he did with BMW in 2006. Rarely, he explained, does he single out a company publicly, because Google’s goal is to preserve the integrity of results, not to embarrass people. “But just because we don’t talk about it,” he said, “doesn’t mean we won’t take strong action.”

Mr. Stevens said that Web site owners, or publishers, as he calls them, get a small fee for each link, and the transaction is handled entirely over the Web. Publishers can reject certain keywords and links — Mr. Stevens said some balked at a lingerie link — but for the most part the system is on a kind of autopilot. A client pays Mr. Stevens and his colleagues for links, which are then farmed out to Web sites. Payment to publishers is handled via PayPal.

You might expect Mr. Stevens to have a certain amount of contempt for Google, given that he spends his professional life finding ways to subvert it. But through the evening he mentioned a few times that he’s in awe of the company, and the quality of its search engine.

“I think we need to make a distinction between two different kinds of searches — informational and commercial,” he said. “If you search ‘cancer,’ that’s an informational search and on those, Google is amazing. But in commercial searches, Google’s results are really polluted. My own personal experience says that the guy with the biggest S.E.O. budget always ranks the highest.”

To Mr. Stevens, S.E.O. is a game, and if you’re not paying black hats, you are losing to rivals with fewer compunctions.

WHY did Google fail to catch a campaign that had been under way for months? One, no less, that benefited a company that Google had already taken action against three times? And one that relied on a collection of Web sites that were not exactly hiding their spamminess? Mr. Cutts emphasized that there are 200 million domain names and a mere 24,000 employees at Google.

in January, the company was crowing about its online holiday sales. Kate Coultas, a company spokeswoman, wrote to a reporter in January, “Internet sales through jcp.com posted strong growth in December, with significant increases in traffic and orders for the key holiday shopping periods of the week after Thanksgiving and the week before Christmas.”

Penney also issued a statement: “We are disappointed that Google has reduced our rankings due to this matter,” Ms. Brossart wrote, “but we will continue to work actively to retain our high natural search position.”

She added that while the collection of links surely brought in additional revenue, it was hardly a bonanza. Just 7 percent of JCPenney.com’s traffic comes from clicks on organic search results, she wrote.

MANY owners of Web sites with Penney links seem to relish their unreachability. But there were exceptions, and they included cocaman.ch. (“Geekness — closer to the world” is the cryptic header atop the site.) It turned out to be owned and run by Corsin Camichel, a chatty 25-year-old I.T. security analyst in Switzerland.

The link came through a Web site, TNX.net, which pays Mr. Camichel with TNX points, which he then trades for links that drive traffic to his other sites, like cookingutensils.net. He earns money when people visit that site and click on the ads. He could also, he said, get cash from TNX. Currently, Cocaman is home to 403 links, all of them placed there by TNX on behalf of clients.

“You do pretty well,” he wrote, referring to income from his links trading. “The thing is, the more you invest (time and money) the better results you get. Right now I get enough to buy myself new test devices for my Android apps (like $150/month) with zero effort. I have to do nothing. Ads just sit there and if people click, I make money.”

I tweeted out another link to the post around 2pm, and then at 2:30pm, it moved a bit further up the results on the 3rd page:

The Latest results factors in real-time linking behavior, so it is picking up all the tweets where my post was being RTed, and as a result, the top half of the Latest results for the term “Social Media Crisis Management” were completely devoted to MY post.

That’s a perfect example of how Twitter and Facebook sharing is now impacting Google results.  And it’s also a wonderful illustration of the value of being active on Twitter.  I tweeted a link to that post several times yesterday and this morning, which was a big reason why it moved up the Google results so quickly, and a big reason why it dominated the Latest results for that term.

there are two things I want you to take away from this: 1 – This was very basic SEO stuff that any of you can do.  It was simply a case of targeting a specific phrase, and inserting it in the post.  Now as far as my having a large and engaged Twitter network and readership here (thanks guys!), that definitely played a big factor in the post moving up the results so quickly.  But at a basic level, everything I did from a SEO perspective is what you can do with every post.  And you should.

2 – You can best learn by breaking stuff.  There are a gazillion ‘How to’ and ’10 Steps to…’ articles about using social media, and I have certainly written my fair share of these.  But the best way *I* learn is if you can show me the first 1 or 2 steps, then leave me alone and let me figure out the remaining 8 or 9 steps for myself.  Don’t just blindly follow my social media advice or anyone else’s.  Use the advice as a guide for how you can get started.  But there is no one RIGHT way to use social media.  Never forget that.  I can tell you what works for me and my clients, but you still need to tweak any advice so that it is perfect for you.  SEO geeks will no doubt see a ton of things that I could have done or altered in this experiment to get even better results.  And moving forward, I am going to continue to tweak and ‘break stuff’ in order to better figure out how all the moving parts work together.

it's in these companies' hands to do this ethically--to build algorithms that show us what we need to know and what we don't know, not just what we like.

why would the Googles and Facebooks of the world change what they're doing (absent government regulation)? My hope is that, like newspapers, they'll move from a pure profit-making posture to one that recognizes that they're keepers of the public trust.

most people don't know how Google and Facebook are controlling their information flows. And once they do, most people I've met want to have more control and transparency than these companies currently offer. So it's a way in to that conversation. First people have to know how the Internet is being edited for them.

what's good and bad about the personalization. Tell me some ways that this is not a good thing? Here's a few. 1) It's a distorted view of the world. Hearing your own views and ideas reflected back is comfortable, but it can lead to really bad decisions--you need to see the whole picture to make good decisions; 2) It can limit creativity and innovation, which often come about when two relatively unrelated concepts or ideas are juxtaposed; and 3) It's not great for democracy, because democracy requires a common sense of the big problems that face us and an ability to put ourselves in other peoples' shoes.

Stanford researchers Dean Eckles and Maurits Kapstein, who figured out that not only do people have personal tastes, they have personal "persuasion profiles". So I might respond more to appeals to authority (Barack Obama says buy this book), and you might respond more to scarcity ("only 2 left!"). In theory, if a site like Amazon could identify your persuasion profile, it could sell it to other sites--so that everywhere you go, people are using your psychological weak spots to get you to do stuff. I also really enjoyed talking to the guys behind OKCupid, who take the logic of Google and apply it to dating.

Nobody noticed when Google went all-in on personalization, because the filtering is very hard to see.