SiteProNews: 04/05/04 Feature Article

To Print: Click here or Select File/ Print from your Browser Menu.


  Article printed from SiteProNews: http://www.sitepronews.com
  HTML version available at: http://www.sitepronews.com/archives.html
Google-opoly: The Motivation Behind Gmail
by Mark Daoust

Just before the close of business on Wednesday, Google announced 
that it will be launching Gmail, its new free e-mail service set 
to offer 1000 megabytes of free space to its users.  This 
announcement comes after a flurry of changes at Google, all of 
which are geared to securing their place as the dominant search 
engine in light of recent competition offered by Yahoo! and soon 
MSN. The search engine wars have been predicted for some time 
now by search engine insiders, and the launch of Gmail is 
Google's attempt to win the war before it gets fully started.  
But is Google really ready to take on the big portals?   

It is very unlikely that Google founders Sergey Brin and Larry 
Page had any idea exactly how big their original search engine 
(then called BackRub) would actually become. Google was an 
innocent project through Standford University. It was a project 
started in the days of optimism about a free Internet not 
supported by ads or corporate revenues, but rather the free 
exchange of ideas. As a result, they focused solely on product.  
There were no worries about creating a flashy interface, hiring a 
sharp marketing team, or launching an IPO. They were worried 
about good search results. The result is that Google is now 
synonymous with searching the Internet.   

Today, Google stands with a much different outlook. The success 
of the launch of AdWords propelled Google into a class all their 
own. Almost overnight, Google entered the PPC industry and 
dethroned Overture as the untouchable kings of PPC. Although 
other search engines such as Lycos, FindWhat, Kanoodle, and 
Sprinks had been competing with Overture, none of these engines 
were able to bring the reach and brand power of Google. 

The success of AdWords was a notice to every other Internet 
giant. Companies such as Yahoo! and AOL – who were providing 
Google's results to their users – took notice of the fact that 
Google had an incredible influence on the Internet, and if they 
desired, they could leverage that influence into a variety of new 
markets. Worse yet, Yahoo! and AOL helped Google gain such 
influence by providing Google results to their users. These 
giants became nervous, and with good reason. Google started to 
show signs that they were expanding into new markets.  
Dictionaries, glossaries, news services, Froogle, Catalog search, 
maps, blogging, and other services were all emerging from the 
Google labs and news rooms. If Google was able to 
instantaneously compete and lead in the highly competitive PPC 
market, what would happen if they moved in on the territory of 
Yahoo!, AOL, or MSN? These Internet giants helped make Google 
powerful, possibly more powerful than they were themselves.   

The battle for web searches had begun. Yahoo! has taken the most 
notable steps by replacing their results provided by Google with 
their newly acquired Inktomi division based results. To fight 
Google on the advertising revenue level, Yahoo swooped up 
Overture, still an all-star in the paid search market. Overture, 
now playing catch-up in an industry which they practically 
founded, launched their own site content match system which 
rivals Google AdWords.   

MSN has vowed to refine their search algorithms to become more 
relevant. Most of the work being done by MSN has been fairly 
quiet, but rest assured, there will be a lot of talk about MSN 
search when they are ready to release their new product to the 
Internet. And, with every new PC you buy, don't be surprised if 
it comes with a host of web searching tools built in. 

There have even been rumors over at AOL that they are going to 
be abandoning their Google based results. The fact is, AOL is 
scared of Google. As it stands right now, Froogle already steps 
on their shopping market, and Google News is taking away from 
AOL's news delivery service.   

By abandoning Google provided results, these Internet giants are 
attempting to limit Google's reach. The simple fact is: users 
still use Yahoo!, MSN, and AOL. They use these services because 
they offer a host of unique information, updated news, financial 
reports, maps, phone directories, etc. Most importantly, users 
visit MSN, Yahoo, and AOL for their free e-mail. While they have 
these users attention, Yahoo! and MSN will now try to sell these 
users on their new and improved search results not provided by 
Google in order to steal a bit of that search engine market. 

Just as Yahoo!, AOL, and MSN realized how powerful Google was in 
the search engine market (and subsequently the danger that posed 
to them), Google is realizing the real threat that these portals 
present. If these portals are able to offer suitable search 
results, users will have less reason to utilize Google's search.  
Google has also recognized the main advantage these portals have: 
free e-mail. Free e-mail is what makes Yahoo! and MSN such 
popular destinations. People who have e-mail accounts at these 
locations find themselves visiting these sites multiple times 
every day just to check their e-mail. While they are there, they 
have the opportunity to be grabbed by a headline or service 
offered through these portals. The free e-mail is what brings 
the users back time and again.  

Gmail is a direct attempt by Google to destroy any competition 
before it arises. With 10 times the amount of storage and what 
appears to be a superior interface for viewing and organizing 
mail messages, Gmail is not simply a nice thing to offer to web 
surfers. Gmail is an attempt to put an arrow through the heart 
of Yahoo! Mail and Hotmail. The services will not be comparable 
in quality, and that is the way Google wants it. The goal of 
Gmail is to make Hotmail and Yahoo! Mail look like laughable 
solutions to web based e-mail. 

If Gmail is successful in converting Yahoo! Mail users and 
Hotmail users, the search engine wars will most likely be much 
ado about nothing. The battle and war will be won, and the 
victor will be Google. But don't expect MSN, AOL, or Yahoo! to 
simply watch Gmail launch without developing a plan to strike 
back hard. Yahoo! alone has invested incredible amounts of money 
to acquire Inktomi and Overture just so they can compete head to 
head with Google. It would be uncharacteristic of them to simply 
fold. And do not forget about the power MSN has with their 
search. Remember that Microsoft controls what search engine is 
used by default on most every computer around the world. That is 
a competitive advantage that Google will have a very hard time 
overcoming.   

Gmail will not be the last new service offered by Google. It 
certainly will not go unanswered by Yahoo! or another portal. It 
will, however, mark a fundamental point in this search engine 
war that appears to now be in full swing. 

================================================================
Mark Daoust is the owner of TowerSearch (http://www.towersearch.com), 
a search engine that guarantees a top ranking for all of your 
desired keywords. Signup today for your free TowerSearch account.
================================================================

Copyright © 2004 Jayde Online, Inc.  All Rights Reserved.

SiteProNews is a registered service mark of Jayde Online, Inc.