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The problem is partly that there are so many website submissions and so much content that the checking process probably can't be 100% automated. So then at that point you end up running into a situation where say Google probably needs to pay people to look at specific things to determine validity...well how much money are they going to put into that? It's the limiting factor.
What we need is some sort of voluntary set of standards that when followed allows a site to display some badge of honor stating that they only use good SEO practices... I don't recall ever seeing something like this. Maybe it's time for me to look into starting it heh.
As a YouTube partner, he is able to pick and choose thumbnails. Instead of using it the proper way (picking a descriptive frame from his own video) he hi-jacks frames from the most popular video of the day (e.g. Britain's got talent). With optimised metadata he is able to be listed amongst the official videos through the related items feature. His only interest is getting video views, thereby increasing revenue from Google AdSense.
Should this trickery be condoned by YouTube?
Your are totally correct. even tho the thumb hijacking has earned me over 3000$ in a month, i had a first strike warning from youtube. Its why i stopped doing it, and have to earn my views the honest way. More hard work, but i guess also more rewarding since its without cheating.
Dave
This one (Eugene The Librarian is Fake) is an example of Blackhat video SEO:
http://www.youtube.com/watch?v=ezQO0lMzLx8&fe...
It seems that Dave is starting to realise that this is not the way forward, since his most recent videos feature correct thumbnails. The effect is immediately shown in the viewing results....