For several days my brain has been connecting the blogstorm over AP trying to dictate how much of their content can be quoted on the web with the “quote” that Nick Carr lifted from one of my blog posts in his Atlantic article — I finally figured out why. The problem with the AP isn’t really about linking, it’s about quoting. And the problem with quoting is that, now that anyone can publish any thought or idea on the web, and anyone can link to it or reproduce it, the whole notion of quoting and citation has been completely turned on its head. Let me try to explain.

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The Associated Press is facing a blog firestorm after issuing take down notices to Drudge Retort for linking to and reproducing snippets of AP stories. AP is now attempting to define how their stories can be linked to and excerpted — and the response from the blogosphere appears to be to boycott the AP, i.e. not link at all. This is a huge opportunity for local and national news sites to be the sources that bloggers and social news sites link to instead of the AP.

Take the story of flooding in Iowa, for example. The AP is covering this story extensively, as you can see in this Google News search result. But local news media in Iowa is also covering the story extensively, as you can see in this search limited to Iowa sources — the story is happening in their own backyard, giving these local sources a unique perspective and knowledge.

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Google is taking a big shot at Facebook in the PR war over data portability and social network interoperability. I signed in to Google Friend Connect, implemented on the Go2Web2.0 blog, and saw this:

Normally, you wouldn’t list a service that isn’t a partner, but in this case Google chose to list Facebook and let users know loud and clear that they can’t connect to their friends on Facebook because the feature has been DISABLED BY FACEBOOK.

This is subtle in some ways, but in others it’s as big a smack as Apple’s brilliant I’m a Mac, I’m a PC ads.

Google is betting that hell hath no fury like a user denied access.

Probably a good bet.

Since I already drilled a nerve with What Newspapers Still Don’t Understand About The Web, which is on its way to becoming one of my most linked posts ever — and since everyone loves a sequel — I thought I would do a follow up for magazines. The lessons, of course, apply to every print publisher, who constantly discovers new ways to frustrate web users by prioritizing print over web.

This time I’m going to pick on The Atlantic, which like the Washington Post is a publication I have a great deal of affection for (published by my former employer Atlantic Media), so this is not a general critique but rather a very specific example representative of a much larger industry-wide problem (i.e. I could find instances of the same problem on virtually any magazine website).

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On the web, in the age of Google, design has no margin of error, and there are no stupid users, only inadequate designs. Those were the main points of my critique of newspaper websites generally, and WashingtonPost.com in particular, which to be fair, apply to all online publishers, and really any website. I’m writing another post on this same topic because the issue is so fundamental to the future of media, news, publishing, and journalism, that it really can’t be over-emphasized or over-clarified.

In print, a design flaw is unlikely to cause a reader to abandon a newspaper or magazine entirely — they are a largely captive audience. But it will cause them to abandon a website.

Google understands this better than any web company, which is why they are the most successful. Google is obsessed with making sure its users never fail, no matter how “stupid” they are. Google makes users feel smart. That’s why they keep coming back.

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Why is Google making more money everyday while newspapers are making less? I’m going to pick on The Washington Post again only because it’s my local paper and this is a local example.

There were severe storms in the Washington area today, and the power went out in our Reston office. I wanted to find some information about the status of power outages to see whether we should go into the office tomorrow. Here’s what I found on the homepage of WashingtonPost.com:

This is the WASHINGTON Post, right? So where’s the news about Washington? We just got pounded by a nasty storm — but it’s not homepage worthy.

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Why is Google transcendent and Yahoo a takeover target? Compare the following:

Sue Decker, president of Yahoo! Inc. (Nasdaq:YHOO), addressed the advertising industry during a keynote this morning at the 2008 Advertising 2.0 New York conference.

“Yahoo! is helping to accelerate the transformation of how display advertising is both bought and sold,” Decker told the audience earlier this morning. “First, we are developing the technology, products and platforms that are designed to help advertisers find the right audiences and publishers find the right advertisers. Second, we are partnering with publishers to secure and monetize inventory that advertisers and agencies find desirable. And third, we are partnering with advertisers and agencies to channel demand to the right consumer.”

Yahoo! President Sue Decker Outlines Vision for Online Advertising Transformation in Advertising 2.0 New York Keynote

Over time, the company also looked beyond click-through rates to rank ads. Google now takes into account the “landing page” that the ad links to, and, for example, gives low grades to pages whose sole purpose is to show more ads. Soon, the loading speed of a landing page will also be considered, Mr. Fox said.

These factors contribute to an ad’s “quality score.” The higher that score, the less the advertiser has to bid to secure top billing. For example, an advertiser who offers to pay $1 per click to attract those searching for “vacation rentals in Colorado” may receive more prominent placement than another who bids $1.50 for the same query but has a lower quality score. An advertiser with a very low quality score may have to bid so much for placement as to make it uneconomical.

Quality scores work as an incentive to advertisers to improve their ads, which benefits users and, in turn, benefits Google, Mr. Fox said.

The Humans Behind the Google Money Machine

“An incentive to advertisers to improve their ads.”

Think about that for a second.

Compared to: “help advertisers find the right audiences and publishers find the right advertisers”

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All innovation looks inevitable, except while it’s happening.

Google’s search advertising model didn’t spring forth fully formed. It was iterated, and many of the key concepts were borrowed — something many people don’t realize. But a few key market-defying decisions, and one stunning insight, made it all work. Here is a brief history to inspire, taken from John Battelle’s The Search (required reading for anyone who wants to innovate anything on the web):

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