I've been reading Googled by Ken Auletta and it's a fascinating history about the company.
The book highlights Google's engineering-driven or fact-based decision making culture. Auletta points out how former executives say that Google's founders don't value marketing. In fact, he writes: "Larry Page is aggressively disdainful of marketing and public relations."
This is why I'm surprised by Google placing a television ad during the February 7th Super Bowl. In case you didn't watch the game or haven't seen the ad online, here's a video clip from YouTube:
According to various sources, this television spot cost Google approximately $5 million to $6 million to air. Here are some good blog posts and articles you might want to check out:
1. Google sees Bing's search engine market share climbing and is carefully monitoring its progress against Google's core business
2. Microsoft's investment in Bing's advertising budget is sizable (~$80 million to $100 million)
3. Microsoft has taken a sound tactical approach in securing Bing partnerships (i.e., Bing is the default search engine in all HP PCs worldwide; exclusive rights to the online video coverage of the 2010 Winter Olympics being featured on the MSN homepage)
4. The Microsoft advertising warchest is sizable (i.e., ~$1.2 billion spent in 2008)
It will be interesting to see if Google will execute future "traditional" advertising campaigns. I'm looking forward to seeing their next moves and how marketing and branding may fit as part of their overall business strategies.
Last week, Google announced real time search and additional innovations to it core search offering. These announcements received significant media coverage, and I find the various viewpoints highly interesting. After reviewing a variety of publicly available sources, I've summarized my observations and opinions on the strategic implications for Google and the battlefield for search dominance.
Observation #1 - Real Time Search is a First Step in Addressing the Threat of Vertical Search Via Social Networks
I recently wrote a blog post about this challenge in Charlie Rose's Conversation with Ken Auletta: Innovation, Efficiency, and Future Challenges at Google. The partnerships with Twitter, Facebook, and MySpace enable Google to include updates from the Big 3 social networking sites into its search index. Previously, it took a few minutes for updates from social networks and blogs to filter into Google's search results (not the case anymore). By offering real-time social networking updates in a Google Search, they're decreasing the threat of users using these sites to conduct searches (particularly Twitter Search). Which leads us to search relevancy …
Observation #2 – A Killer Combination: Real Time Search with Google's Search Relevancy
According to the New York Times article, Biz Stone (one of Twitter's co-founders) think Google is better at providing relevancy to a search user's questions. In addition, TechCrunch hammers home how relevancy is a major strength of Google searches. MG Siegler, the author of the TechCrunch article made some great points:
* "Relevancy is perhaps the key to making real-time search a pillar of the web."
*How Google Fellow Amit Singhal positioned Google's relevancy advantage: "It's Google relevancy technology meeting the realtime web."
In Adam Ostrow's Mashable article, the partnerships with Twitter and Facebook are a concession by these companies that they can't outbuild (or outspend) Google when it comes to search. Just ask Carol Bartz, the CEO of Yahoo …
Observation #3 – Google Continues Expanding Search to the Mobile Space
Christina Warren (another of my favorite Mashable writers) made some intresting observations about the implications for Google's competitors:
* Microsoft's Bing: They're now going after a moving target because Google will continue to innovate in search.
* Yahoo: Even though it's has more market share than Bing, Yahoo is conceding real-time search to Google and Bing. Search isn't a focus for them. Their niche is as a service provider.
In addition, The Wall Street Journal points out that Bing has gained market share and credibility in search. Naturally, Google is going to protect its core business. These announcements show Google is still on the cutting edge of innovation and will continue to introduce new advancements.
Therefore, it's not surprising that these advancements focus on the mobile space:
* Google Goggles: Allows users to pull up information about a landmark or product by taking a picture from their cellphones. This service is currently only available on cellphones running Google' Android OS. According to Vic Gundotra, a Google VP of Engineering, the end goal is to "visually identify any image over time, merely by pointing a mobile device to it."
* Google Voice Search | Google Translation: Allows users to conduct search based queries by speaking into your phone (supports Mandarin, Japanese, and English). When you speak into your phone in English, your query can be auto translated into another lanaguage (i.e., Spanish) and the query can can be spoken back to you out loud — your phone becomes a Universal Translator.
* Google Local Search / Location-Based Search: Allows users to get information about locations and user ratings of nearby restaurants and shops. It will also provide "contextualized" suggestions relevant to the current location you're in.
Observation #4 – Personalizing Search is Going to be a Major Factor in Establishing Search Dominance
Silicon Alley Insider highlighted what Google considers The Four (4) Biggest Challenges in the Future of Search:
* Challenge 1: Modes – how and where people type in a search query * Challenge 2: Media – how people manage and consume content * Challenge 3: Language – how to help people conduct searches without communication barriers * Challenge 4: Personalization – enable customized searches re: tastes, preferences, and locations
ComputerWorld emphasized the importance of Challenge 4 in the search rivalry between Google and Microsoft. Search is becoming more indvidualized and that includes finding relevant and applicable content from images, video, tweets, and blog posts. According to Dan Olds, an analyst with The Gabriel Consulting Group, search is "looking more like the dynamic lives of its users" because:
* Search is becoming more personal and granular * Search results are now drilling down to include a single people's observations or opinions (whether you're famous or not)
Observation #5 – These Innovations Bolster Google's Competitive Advantages in Advertising and Cloud Computing
Real-time search and the mobile innovations naturally support Google's vision towards cloud computing. Google wants users to spend more time on the Internet searching for information (specifically with their search engine and subsequently looking at more of their ads). By performing more Google searches, we'll provide more information on our online behaviors. This data gives Google the advantage in delivering more appropriate advertisements (and that increases the value of the ads it auctions).
I've started reading Googled: The End of the World As We Know It by Ken Auletta. There's no question Google is reinventing and transforming the world of traditional media. If you're an online strategy nut or corporate strategy geek like me, you'll love this book.
I discovered this book from a Charlie Rose interview conducted on November 5, 2009. After watching the original broadcast and studying the online archive, I had to write a blog post about the key takeaways from their conversation. I also purchased Mr. Auletta's book from Amazon because I love learning how Google:
* Approaches and dissects problems * Views business opportunities * Drives and sustains innovation throughout its organization
Furthermore, Charlie Rose is the television industry's best broadcaster and interviewer. Check out this Fortune Magazine article: Why Business Loves Charlie Rose. The outstanding content and insights shared on Mr. Rose's nightly show make it required viewing. I also learn from Mr. Rose's preparation, questioning, and listening. He possesses that rare ability to comfortably engage guests and non-threateningly ask difficult questions.
Without further adieu, here are the seven (7) insights I learned by studying the conversation between Mr. Auletta and Mr. Rose. If there are additional viewpoints or lessons you think should be included from the November 5th interview, please share them in the comments section.
Insight 1: Ask Why Does It Have to Be This Way?
Google asks this fundamental question whenever confronting a problem or business opportunity. Their engineers challenge the status quo by starting with a basic assumption — the traditional analog world is inefficient.
Advertising. Wouldn't you want to know if people are reading your ads? Wouldn't you want to know if the people who buy your product(s) do so because of your advertising?
Packaged Computer Software. Why does computer software have to run from our hard drives or a computer desktop? Why can't it run off a computer "cloud" accessible through our web browsers?
Newspaper Publishing. Isn't there a more efficient way to publish and distribute newspapers?
Bottom Line: Google finds a way to drive out inefficiencies. This "engineer's mindset" is the core capability Google brings to solving all traditional problems.
Insight 2: Google and Microsoft are Different – and Alike
Cold Engineers Versus Cold Businessmen. Google isn't out to destroy the competition. Their engineering goal is to drive out inefficiencies. Contrast this mentality with Microsoft in 1998 (when it was investigated for antitrust concerns). Here, the US government questioned the company's intent to compete fairly with Netscape and Sun Microsystems.
Both Share an Inability to Anticipate Other People's Fears. Both Google and Microsoft are brilliant in solving problems. However, both firms don't understand why the US government and public would question their business motives. In Google's case, people now fear them the way people feared Microsoft in 1998. The recent legal proceedings between Google and the publishing industry regarding the digitizing of books is a prime example. Here's a recent article about how Google is attempting to smooth over relations with the publishing industry from The Washington Post titled, Google Allows Publishers to Strengthen Pay Walls.
Insight 3: No One Saw Google Coming (Not Even Bill Gates)
You Can't Anticipate What You Don't Know. In 1998, Mr. Auletta interviewed Bill Gates during Microsoft's antitrust trial period and asked what worried him the most. Gates replied: "I worry about someone in a garage inventing something that will displace Microsoft." Ironically, Larry Page and Sergey Brin are now Microsoft's most significant competitor particularly with their push to establish cloud computing and Google Chrome OS.
2006 was a Tipping Point: The $1.65 Billion YouTube Acquisition. Before this acquisition, it was unclear if Google was making money. With the YouTube acquisition, traditional media finally realized Google's broad ambitions and imminent threat as a future media company. Mr. Auletta said it best during the interview (paraphrasing): "Wow, they're coming after me (e.g., traditional media)."
Insight 4: Google Views Itself as a Media Company Not a Search Company
Become the First $100 Billion Media Company. Eric Schmidt says this is the ultimate goal. Currently, Google hasn't significantly monetized their product portfolio beyond search. However, you can't bet against them because of their involvement in a vast number of areas:
* Advertising: Google AdWords, Google AdSense * Telecommunications: Android OS * Television: YouTube * Books & Publishing: Digitized Books * Software: Cloud Computing, Google Docs
Make Money But Not at the Expense of Violating User Trust. Mr. Auletta finds this insight or clarity of thought extremely telling. At a young age, Brin and Page recognized the value of building user trust because they've received plenty of opportunities to make "easy money." For example, they declined Visa's $3 million offer to place a banner ad on the Google Home Page. Brin and Page declined becaus they thought the ad would be intrusive and disruptive to the user experience.
Insight 5: Google's Simplistic Home Page is a Nod to Steve Jobs and Apple
Google's founders admire Jobs' passion and his vision to simplify with "elegant design." The simplicity and clean look of the Google home page reflects Jobs' and Apple's influence.
Insight 6: How Will Google Handle Current and Future Challenges
Challenge 1: Expanding Revenues Beyond Search (aka The One-Trick Pony). Mr. Auletta points out how Steve Ballmer, Microsoft's CEO, criticizes Google's reliance on search-related revenues. But, I liked Mr. Auletta's anecdote that Eric Schmidt, Google's CEO, replied: "Yeah, but it's a pretty good trick." Still, Ballmer has a point. AdWords and AdSense accounts for $21 billion in revenues (out of $22 billion total). Mr. Auletta puts this number in context and explained that $21 billion is roughly equivalent to the advertising revenues for allU.S. consumer-related magazines. Also, Google's revenue is also equivalent to two-third's of U.S. newspaper advertising revenues.
Not too shabby for a one-trick pony …
Here's a video clip from the CNBC Original: Inside the Mind of Google. It talks about how Google is looking to expand its influence into the mobile market with its Android Operating System:
Challenge 2: Google is Concerned About Vertical Search Via Social Networks. I can personally confirm the power and appeal of search via social networks like Facebook or Twitter. I've commented on other blogs that the reason I find Twitter so powerful is because the people I follow on Twitter are often a better source of content than my own Google search. The authority of your Facebook Friends or who you follow on Twitter is why Google wanted to acquire Twitter.
In many ways, real-time search or conducting a search through Twitter is what Google would ask or propose to threaten their own offering. Google is asking themselves: "Why should you conduct a search through Google when you can solicit the trusted opinion of friends or people who share your common interests?" This idea is captured in one of the best articles I've ever read on Facebook as a potential threat to Google: Wired Article – Great Wall of Facebook: The Social Network's Plan to Dominate the Internet — and Keep Google Out.
Challenge 3: Convincing Top Talent to Remain at Google. Mr. Rose and Mr. Auletta discussed the challenge of employee retention especially when your top engineering talent (1) has no shot at attaining the top spot because you have young founders and (2) the opportunity for a big pay day has already passed. A prime example is Marissa Mayer, Google's VP of Search and User Experience. Even though she's achieved significant wealth as one of the original team members, she may want to forge her own path by leading her own company. Here's an article about Marissa Mayer from the New York Times titled, Putting a Bolder Face on Google.
Challenge 4: Trappings of Your Own, Phenomenal Success: Arrogance and Hubris. Right now, Google is not concerned about Microsoft Bing. They respect what Microsoft has accomplished with Bing and are aware of the Microsoft-Yahoo combination. However, Mr. Auletta thinks Google looks at Microsoft as "an old company" that won't move as quickly as Google.
Furthermore, when you're young and you've become successful so quickly, you begin to question why would anyone question your business motives (e.g., why's the U.S. government giving our company grief for wanting to digitize all books)? In 1998 and 1999, Bill Gates had the same attitude when the U.S. government investigated Microsoft for anti-trust concerns. Christine Varney, Head of the U.S. Justice Department's Anti-Trust Division, is investigating all concentrations of power and the tendency of Democratic-led administrations is to introduce more government regulation. As a result, Google has been beefing up its Washington office with legal talent. Check out this June 2009 New York Times article titled, Google Makes a Case It Isn't So Big. The story profiles Dana Wagner and his significant role in Google public relations on Capitol Hill.
Challenge 5: What Happens to Privacy? Will Google Continue to Not Be Evil? With every Google search we conduct, we leave a digital fingerprint or footprint (i.e., our individual IP address). Everyday, Google collects millions of data points about our online habits and tendencies. This is the reason why advertisers partner with Google. Advertisers want access to that information. What happens if advertisers make significant financial offers to Google to access to that information? This concentration of personal information on Google's servers is the biggest reason people fear it is becoming too powerful.
Here's another video clip from the CNBC Original: Inside the Mind of Google. It talks about how this very subject and includes Marissa Mayer's opinion on this issue:
According to the Bloomberg article, Microsoft has Herculean Task in Taking on Google, Americans conducted 65% of their online searches using Google in May 2009. Bing, Microsoft's latest competitive offering, is making some headway and apparently caught the eye of Google co-founder, Sergey Brin (click here for the June 14, 2009 Mashable article). Bing's potential competitive threat benefits all online users because Google will continue improving its core business. This August 10, 2009 Mashable article discusses how Google's engineering team is upgrading the speed, accuracy, size, and comprehensiveness of Google Search. The project is still in beta mode and is code named, Caffeine. In the foreseeable future, Google's online search dominance will continue so understanding its influence and impact on your online visibility is critically important.
Various reputable news sources report signs of an improving U.S. economy, but I'll believe the economic turnaround when I see it. Unfortunately, Corporate America is still conducting layoffs. Therefore, high online visibility to potential networking connections, corporate recruiters, or employers is vitally important. Whenever any of these three contact points researches "your name" on Google, you want to dominate the first and second page search results. If you don't own the majority of the Top 20 Google results, you may as well be invisible.
To boost your online visibility, I suggest the following five tactics. Each tactic is worth your time and effort. Remember that perfection and technical expertise are not a requirement — Just Get Started! The most important critical success factors are your commitment and persistence.
Start a Blog
Create a Google Profile
Participate in the Big Three Social Networking Sites: Facebook, Twitter, and LinkedIn
Post Comments on Other Blogs
Register with Frequently Updated Profile Sites (i.e., MyBlogLog, FriendFeed)
Tactic #1: Start a Blog Blogs rank high in Google search results so this tactic cannot be emphasized enough. The Google algorithm rewards websites with frequently updated content. High ranking blogs are routinely updated on an hourly and daily basis. As a result, blogs garner a distinct advantage in the search engine results pages game (e.g., SERPs). This advantage is exactly why businesses and individuals should implement blogging as the foundation of an online marketing strategy.
For an easy-to-understand primer on how to create and maintain a blog, I highly recommend Dan Schawbel's eBook, Blogging Your Brand: A Complete Guide to Your Success. This well-structured reference literally walks you through a step-by-step process that's accessible to both Beginner and Expert bloggers.
Tactic #2: Create a Google Profile One of the quickest and easiest ways to achieve a front-page Google search engine result is by creating a Google Profile. Google introduced this service in Spring 2009. For individuals completing a Google Profile, their name and profile is shown as Google search engine result #10 (in a search for that person's name). The Google Profile launch received a lot of press during this time which triggered a "land grab" for individual names. Still, this shouldn't discourage you from filling out an individual profile.
Another important reason for completing a Google Profile is you can use the customized URL created for your Google Profile as a "virtual business card" when posting your comments on other blogs. When you post a blog comment, you want the blog author and other respective commenters to "see who you are." Until I got my blog up and running, I relied on my Google Profile for posting blog comments or other instances when I required a personal web site URL.
If you need more information about Google Profiles, here are some helpful online resources:
Tactic #3: Participate in the Big Three Social Networking Sites: Facebook, Twitter, and LinkedIn On June 18, 2009, eMarketer published the article, Facebook Overtakes MySpace. The statistics confirmed Facebook's supremacy as the top social networking site. Additional data I found interesting included how Twitter experienced explosive growth of ~2,700% and LinkedIn grew by 90%. MySpace still ranks as the second largest social networking site, but its traffic and membership are steadily declining. Profiles from these sites rank high in Google Search, but I recommend focusing on Facebook, Twitter, and LinkedIn (especially if you're a social networking newbie). To maximize your online visibility, make sure you consistently employ your real name as your profile username (i.e., www.twitter.com/yourfirstnameyourlastname or www.twitter.com/tonyfaustinoor www.facebook.com/tonyfaustino).
Tactic #4: Post Comments on Other Blogs Commenting on other blogs provides an opportunity to demonstrate your knowledge in a particular subject or industry. In the online world, commenting on another person's blog is the equivalent of attending a face-to-face networking event. Take advantage of this opportunity to make a great impression! Your comments also give Google another means of indexing your name. By consistently posting blog comments, you'll compile a critical mass over time. As a result, Google will display these comments in future search results related to your name.
Also, register with BackType.com so you can maintain an online record of all of your blog comments. You never know when those comments might come in handy for a future blog post.
Tactic #5: Register with Frequently Updated Profile Sites (i.e., MyBlogLog, FriendFeed) Member profiles in social networks like MyBlogLog.com and FriendFeed rank high in Google Searches because their content is frequently updated. These sites aggregate your activity or updates in other social networking sites such as Twitter or Delicious.com. Therefore, every time you send out a tweet or bookmark an article or website, the activity is automatically recorded as "an information stream." These "information streams" are searchable, indexed, and provide a great opportunity displaying your name in the Top 20 Google Search results.