The End Of Google Search Is In The Palm Of Your Hand (GOOG, AAPL)

Source: http://www.businessinsider.com/the-end-of-google-search-is-in-the-palm-of-your-hand-2011-12


The funny thing about anti-trust cases against technology businesses is that technology businesses may sometimes monopolize a platform – but the platforms they monopolize are always on fire.

In the 1990s, Microsoft came under attack because Windows dominated the PC. 

But then the Internet made the operating system you use to access it from your PC irrelevant.

Now Google is getting scrutiny in Washington and in Europe because it owns so much of the search market.

But did you know that you hold the end of Google search is already in the palm of your hand?

Google makes money because people search the Web for stuff they want to buy (or for information about stuff they want to buy). Google brings them back a list of Web pages and ads. The ads are often as relevant to these commercial Web searches and the links, and so users click on them, ringing Google’s cash register.

But here’s the thing. I buy lots of stuff on the Internet, almost. I buy groceries. I buy movie tickets. I buy plane tickets. I book golf tee times. I order pizza. I buy Christmas presents from Amazon.

Google doesn’t take part in any of the transactions at all.

That’s because I do all this commerce not through the Web or through Google search; I do it through apps on my phone.

Check it out:

]iphone home screen

Now, at some point, I do search for these apps, just like I would search for Web pages. But I don’t use Google search to find them. I use Apple’s Apple Store.

My search results look like this. 

iphone home screen

Right now, Apple isn’t showing any ads in them, but that’ll change. When it does, it will mean less money for Google ads.

The good news for Google is that its mobile operating system, Android, owns a healthy slice of the smartphone market. It will be able to put ads in its own app store.

The bad news is that share is much smaller than its market share in search, where it also faces much weaker competition.

SplatF’s Dan Frommer made an awesome chart illustrating this:

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By: Dr. Augustine Fou Monday, December 12th, 2011 news

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Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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