tedster - 5:22 am on Jun 10, 2011 (gmt 0)
I've been hearing that tune since the day Google launched Adwords - and I'm 100% sure it's just not true. The organic search team doesn't even have a KPI that's related to revenue.
Here's the way I see the current situation. Google's organic team took on an immense job with Panda - something that no one ever tried to do before with machine intelligence. And in some ways the results are still very rough. I expect they will stay pretty rough in some areas for a good while longer. That's the way immense jobs are.
But the problems are not showing up on highly competitive search terms. If someone got pandalyzed off page one for a big query, then a competitor with a decent offering just got promoted to page one for that query. That's a zero sum situation - it does NOT add up to forcing more Adwords income.
That said, I really do wish th Googlers would speak more clearly about the situation - especially why so many sites don't seem to get re-ranked no matter what kind of changes they make. There's got to be some plain English available, but this particular exchange between Danny and Matt didn't provide it.