There has been some buzz today about Google’s recent update of their Adwords algorithm. The rumours are that this has been done to squeeze the profit margins out of PPC and affiliate arbitragers.

Thinking back to some of Google’s past algorithm shakeups I wonder if it has really helped them. Radical shakeups have made internet-reliant businesses intently aware of search engine optimization. Is it really better to have an entire industry obsessed with gaming the system rather than a handful of “elite” fighting over gambling and prescription drugs?

Its no secret that Google is working hard to recruit the best and smartest candidates as employees. Is that good enough? Will they create a “god” algorithm or will this be a cat and mouse game for the next two decades?

I am happy with the cat and mouse game. Continual shakeups mean new opportunities. It also means that those who are well-diversified have nothing to worry about.