On the current discussion on the value of directory links, and this week’s headlines.

It was not long ago the success of Google’s search engine algorithm lead many to argue that the time of the human edited directories was over. None of the major search engines now feeds directory results to searchers by default.

Google has removed the ODP Google Directory link from its front page. Yes, you cannot even find it in the pull down menu in the upper left hand corner!

Most web searchers do not even know that Yahoo! started out as a directory.

In spite of this we have seen the birth of a large number of new directories the last couple of years. Their main customers are actually not the searchers, but sites willing to pay to get a link from another site, thereby improving their chances of getting a good listing in Google.

Google’s PageRank algorithm does take the number and quality of inbound links into consideration when determining rankings.

Now Matt Cutts of Google is confirming what we have already guessed: Not all directories are considered of equal importance by Google:

He tells us to ask the following questions when considering submitting to a directory:

• Does the directory reject urls? If every url passes a review, the directory gets closer to just a list of links or a free-for-all link site.
• What is the quality of urls in the directory? Suppose a site rejects 25% of submissions, but the urls that are accepted/listed are still quite low-quality or spammy. That doesn’t speak well to the quality of the directory.
• If there is a fee, what’s the purpose of the fee? For a high-quality directory, the fee is primarily for the time/effort for someone to do a genuine evaluation of a url or site.

The debate was started when a large number of directories found their rankings dropping in Google, including Aviva, Alive, Big Web Links, ewebpages, Directory Dump, Elegant Directory and Biz-Dir.

That doesn’t mean that Google find all of these worthless, though; there may be other reasons for this fluctuation in rankings. Still, it seems a fair guess that the search engine has decided to turn down the PageRank effect of some of these sites.

The Unofficial SEO Blog has more on the directory debate.

And here’s this week’s recommended search engine reading:

Creating Google Custom Search Engines
Make your own custom search engine and tell Google which sites to search and which to avoid when dealing with a search query. (OnLamp Sept 7 2007)

5 Tips for Optimizing Images for Search Engines
Image Search is the fastest growing vertical search in the space. Here's how to exploit it. (Search Engine Guide Sept 6 2007)

Yahoo seals BlueLithium deal
Yahoo! is buying online advertising network BlueLithium for US$300 million in cash (Shanghai Daily Sept 6 2007)

Facebook Madness: Profiles Put On Search Engines
Facebook adds a members search function which allows unregistered users to scan individual profiles and integrate profiles into search engines so user data can be called up by Google and Yahoo! (TrustedReviews Sept 8 2007)

Google discusses multimedia ads in Universal Search results
Google has had internal discussions on how to incorporate visual advertisements in search engine results pages (SERPs) that best match search query relevancy. (Search Engne Watch Sept 7 2007)

Windows Live's Trojan Horse
Microsoft Bundling Software, Apps In New "Windows Live Services" (Google Operating System Sept 6 2007)

StumbleUpon Phenomenon : An In Depth Look At A Social Networking Giant
StumbleUpon has rapidly become a major player in the social networking craze (Search Engine Journal Sep 5 2007)

Ex Googlers Using Google Lucre to Make Google Competitor
On the rumors about new search engine Cuill (pronounced “cool�) (John Battelle Sept 5 2007)

Google Book Search Adds My Library
Google Book Search now has the capability to add any book you find—whether they have the full text, a limited preview, or none at all—to a personal, digital collection (Marketing Pilgrim Sep 6 2007)

Google Webmaster Central gets a new look
Google integrates Google Analytics, Custom Search, Developer Tools and Gadgets into Webmaster Central (Webmaster Central Blog Sep 6 2007)

Screenshots: The New Delicious
The popular bookmarking service will get a new design (SE Land Sep 6 2007)

LookSmart CTO Resigns
A couple of months after LookSmart CEO David Hills resigned, the company's CTO, Michael Grubb, announced his resignation (SE Land Sep 6 2007)

Pandia this week:

Netscape returns to being a regular news site
Google Book Search adds My Library and more
Google Reader includes search engine
Academics get access to Google search data