Google's Evolving Search Algorithm

I ran across this interesting article on changes to the Google algorithm this morning: Google Changing the Way it Ranks Sites

It talks about how Google may start to place less importance on linkjuice and emphasize things like geographical relevance for determining page rank. The author says this makes sense in order to strengthen Google's search algorithm in today's changing web 2.0 community. Users have a bevvy of options for sharing sites they love including video and audio - methods that aren't necessarily confined to traditional text linking. The author indicates that major players in the evolving way links are shared are social networking portals like Facebook and MySpace: an area where most links are currently hardly recognized by Google's algorithm at all.

What does this mean for SEO? In the long run, it could mean less focus on gaining inbound links for your site, and more focus on relevant content and geographical popularity or relevance.

Personally, this makes sense. Tailoring search results to the specific needs and location of the user is bound to return more relevant results. That, and paid link directories are currently making way too much money from us poor SEO folks.