Why Google Will Not Be Troubled By Economic Meltdown

16 10 2008

Google is the top destination for search queries. Be it to buy something or just to find out more information, most people head to Google. Google are so successful, that people often don’t say, “search for it”, they say “google it” instead. Why, we’re obviously influenced by them, dedicating a blog and calling ourselves Just Google It.

Recent market stats from web monitoring company Hitwise show that Google’s UK market share has broken 85%. A recent blog post even speculates that Google will rise to an astonishing 90% in the US inside the next 12 months. Google’s shares may be falling, but hey, aren’t every-ones?

Things look rosy in the Google camp. With Queen Elizabeth II visiting their British HQ, the world enthralled by the new G1/Android phone and Google Chrome making ground on Opera. Things are only going to get better…

Althought the Internet has no start page, no launching pad, no distinguishable point from which all information is connected, Google is seen as the gateway, helping directly connect users to the content they require. It is this that’s make Google so powerful. They provide the exposure. They present you to the world. They can direct people to any (almost) website in the world. And people want it to be theirs…

Google’s homepage is its brand. Its simple, plain, clear, like their search results. A blank canvas for the Internet’s start page. The image below compares Google’s closest search rival, Yahoo! and it’s homepage over a 10 year period.

Yahoo! Google homepage comaprison

Yahoo! Google homepage comaprison

Yahoo’s homepage is a hub of information, offering news, shopping and other various links along with its search box. Google however have minimalised the content on their homepage, making search the only real option, leading to Adwords being activated, clicks forthcoming and the money rolling in.

Google are in an amazing position to come out of the World’s economic crisis smiling. Shares may be sub-$400 [GOOG closed yesterday around $350), but this is a great time to invest in Google shares. They are no longer about search. They are about information, technology and making life easier.

Google’s offerings include:

And many more. And the time for being a competitor of Google’s through just search is long gone. Google have created the worlds biggest advertising network through their ability to index billions of webpages and their “Internet gateway” as the main selling point.

Competitors who want to dethrone Google need to fight a two-front war. They have to build a killer consumer search service as well as a successful advertising network. Building one of these is difficult, but doing both simultaneously is nearly impossible. Google’s dominance in both of these areas gives them an unfair advantage, and allows them to easily parry any attacks

Skrenta.com

Google has moved on so much that we should all consider the mantra: Google is not your competition, Google is the environment. (Skrentablog, again) People should learn to work with Google, not against it. Use Google’s tools such as Adwords and Adsense to maintain a steady stream of traffic and sales, and Analytics to monitor, through these turbulent times.

People may start cutting down on their advertising spend, but they will still go to Google as the main online service to get highly-targeted visitors – and for a reasonable deal (no fee for visibility, only pay for true visits) Even if people do start to withdraw their cash, Google are expanding their advertising canvasses, meaning the people left will get more exposure and more business. Google are experimenting with ads on Image Search, text ads are appearing on Google maps (a move Just Google It calculated to be worth $600m a year!) and YouTube recently enabled links to relevant content. These moves will increase ad exposure and increase Google’s income, while still benefiting businesses.

And all this from just their advertising! There is still to be the US and UK launches of the Android phone, sure to compete with the iPhone in terms of sales. Add to that the newly-popular Chrome and all their other services and Google are fast becoming the biggest brand in the world!

That is why Google will come out smelling of roses from the economic downturn. Grab some of that Google stock while you can!

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14 03 2009
| The Cultural Intellect

[…] of all US searches in conjunction with its array of advertisers led many to believe Google was recession proof. However, now that its stock price has fallen to around half of its 700 point high, Google has been […]

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