Googlicious?
When Yahoo! hit the IPO jackpot, they invested a lot of the extra cashflow into other standalone, web startups and as a result, they took a big hit when the bubble burst. The Google IPO has created a lot more liquidity for the younger search company, but they seem to be putting an inordinate amount of their money and effort into questionable in-house ventures which appear to only enhance the brand and which do not provide obvious income opportunities.
Over the past week, two such endeavors have come to light;
As a user, I may get some benefit from these efforts, but the hosted responses to news articles raises legal, ethical and competitive questions. I pretty much know what my local hardware stores look like and where they're located, so since the phone numbers are already listed and their hours are a click away, I can't see any value in the second effort for anyone in a small to mid-sized market.
If I were an investor in Google, it may be time to start questioning the reasoning for these and other ventures because I see only limited return, beyond a simple and non-revenue-producing enhancement of the brand.
Though, if I were unemployed and in need of an income, I'd totally bank some of Google's misguided funds.
(Valleywag and Lost Remote contributed links to this post)
Over the past week, two such endeavors have come to light;
- Yesterday, Google announced that the subjects of a news story may now submit a written response and after the author's authenticity is verified, the response will be posted alongside the original story using AJAX, so a new pageview would not be required and no additional advertising would be displayed.
An example of this setup can be found in relation to a story about McDonalds. - On Monday, Google announced that they'll be recruiting "Business Referral Representatives", who will be independent contractors that will be paid per verified listing for going to local businesses to collect data like phone number and hours of operation, plus take a photo of the business so that this information could be added to Google Maps.
While in contact with these businesses, the contractors, who could be anyone and anywhere are encouraged to talk-up the functionality of Google Maps and Adwords. Though, none of their pay is tied to the contracting for these services. The only way Google would make a return for this effort is if the business were to purchase Adwords and in my opinion, they may get some sales in markets larger than a hundred thousand, but in the smaller cities of this country, Adwords doesn't seem to make a lot of sense for the average brick and mortar business.
For example, if you punch the name of my town, the postal abbreviation for the state and the word "hardware" into Google, the first three listings are from Google: Local. All three of these businesses belong to a national buying cooperative and their phone number and map position are already displayed.
There's the "Ace", the "True Value" and a "Do It Best"; Two of the three do have freestanding websites which lists the kind of data that Google will be collecting, but they're already linked from the initial listing and an additional link to such a limited site would just be redundant. For shopping, specials or price comparisons, all of the businesses redirect to the national chains where the catalog is more extensive and the database is easier to maintain.
If I were the owner of any of these businesses, I don't see how I could justify buying an Adword. My listing already appears at the top of the Google results and though a geographically-targeted Adword would put another link on the page, I don't see how it would benefit me. There's three hardware stores in this town, much like there's three auto parts stores and two laundries. This situation and these numbers are fairly typical for the smaller markets, so why should Google pay somebody up to ten dollars to collect their phone numbers, which are already in Google anyway because of their lookup service?
As a user, I may get some benefit from these efforts, but the hosted responses to news articles raises legal, ethical and competitive questions. I pretty much know what my local hardware stores look like and where they're located, so since the phone numbers are already listed and their hours are a click away, I can't see any value in the second effort for anyone in a small to mid-sized market.
If I were an investor in Google, it may be time to start questioning the reasoning for these and other ventures because I see only limited return, beyond a simple and non-revenue-producing enhancement of the brand.
Though, if I were unemployed and in need of an income, I'd totally bank some of Google's misguided funds.
(Valleywag and Lost Remote contributed links to this post)