Google Phone: A Lesson in Creating Demand

Includes: GOOG, VZ
by: Andy Beal

Google (NASDAQ:GOOG) is the master of creating demand, and it started with a single tweet:

Since then, technology and gadget bloggers have been in a frenzy not seen by me since the iPhone was first announced. I’m not about to get into the many details of Google’s Nexus One phone–I’m going to take a different angle, below–but you can read all about the unlocked Android phone, here, here, and here. Oh, and here’s what it looks like:

So, what’s my take on this?

The media frenzy!

OMG! I don’t know how much Motorola (MOT) and Verizon (NYSE:VZ) spent trying to hype up the launch of the recent Droid phone, but that publicity doesn’t compare to what Google has accomplished over the weekend.

How smart was Google? It handed out free phones to Google employees, either didn’t tell them to keep quiet about it, or actively encouraged the discussions, and let the details slowly leak out. All weekend long, I’ve seen post, after article, after post hit the web. Right about now, everyone that doesn’t own an iPhone is currently drooling over becoming a Google Nexus owner–and there are probably a few iPhone owners feeling the same way too!

Perhaps Google has realized that it’s just not that good at artificially creating excitement with its own advertising. The company became the world’s #1 search engine via word of mouth. Could it own the world’s #1 cell phone the same way?