Google Merchant Search: How Far is Too Far?

While not a traditional content-rich internet portal like Yahoo! (YHOO) or MSN (MSFT), Google (GOOG) has been slowly releasing content-centric services over the years in a number of different verticals. 

Take automotives for example;  perform a query for used automotives, and placed (strategically) below the paid advertisements but above the organic search results, Google presents a form to perform a more targeted automotive search (click to enlarge images):

Filling out the form takes you to Google Base, which displays a detailed list of autos for sale.

Another vertical in which you'll find this functionality is music.  Perform a standard music search, and you'll be presented with a link to more information on albums, songs, etc. on Google Music:

Looking for local movie showtimes?  Google has information on showtimes, movie reviews and theaters at Google Movies:

Google Merchant Search

Now, Google is taking this to the next level with Google Merchant Search.  Google Merchant Search acts as a middle-man between the service provider and the consumer, with Google assuming the role of advertiser.  In this case, Google is leveraging it's own platform in a big way.  Take, for example, this search on secured loans:

Enter a loan amount and you are presented with this screen:

This type of functionality is indeed beneficial to the consumer, however we must ask the question: how far is too far?  When do we start talking about Google as a monopoly, not as a search monopoly, but as an information repository? 

With Merchant Search, Google is on the verge of disrupting the entire search eco system.  More specifically, Google is at risk of alienating its biggest asset - Search Engine Marketers.  Search is incredibly profitable as it is.  Google profits when people click on sponsored listings.  Advertisers profit when the Google AdWords platform drives traffic.  Website publishers profit when Google brings in organic traffic. 

For anyone doing business online, Google is really a double edged sword.  It brings many of visitors to our site every day in its organic search results.  It also brings thousands of visitors to our network sites via AdWords.  While our business models rely and flourish with Google, it is also at risk for depending on Google.

In Conclusion

Is Google willing to infringe on it's advertisers territories for a piece of the pie?  You bet  - Google has shareholders to answer to, after all.  Besides, an expanded services offering benefits both Google and the consumer.  The only losers are search marketers and advertisers who don't partner with Google.

Disclosure: none

Comments

[Devil's Adv...:]

This is no great surprise. Google has made it clear for a very long time now that they want to "Organize the World's Information." And in the rush to ride on their financial coattails, many companies and content providers have gladly helped them realise this vision. The challenge comes down to when the parasite overpowers the host and, subsequently, trades places with them. I've often wondered how it is that GOOG and other search engines are able to promote themselves by using others' content without permission? Even in their natural search results, they've become so popular because they've done such a good job of appropriating information others have worked hard to assemble - but have never received permission to do so, and have never paid those sources for the use of this information - even though it's this information that has made GOOG so wildly popular in the first place. In the offline world, if I found a way to obtain for free many different bits of content that others produced, and used it to build my own business on their backs without ever paying them any royalties, how long do you think it would take before lawyers got involved with cease & desist orders?

2008 Jun 05 10:47 AM

[gwinner:]

Google will continue to aggressively push these boundaries. In a world driven by information, this is Gaia, and they know it. Look for them to win sometimes, draw elsewhere and loose sometimes. At the end of the day, they are data driven and avoid huge missteps.

2008 Jun 05 12:27 PM

[Derrick She...:]

@Devil's Advocate: There are actually several lawsuits against Google, companies suing them for indexing their content without consent. Google generally will remove that content from their index. Like everything else Google does, however, it's a double-edged sword because not being in Googles index means they don't bring you any visitors.

2008 Jun 05 11:06 PM