Google’s Growing Pains

According to Investrend’s Financial Wire, “Search engine Google sells billions of dollars worth of ads to companies trying to make their mark, but the company spends very little promoting its own brand.” While it may not be this specific failing that is touched upon, other sources are noting that Google may be showing signs of age and be facing some tough times. The New York Times says that industry analysts state the potential threats to Google, “fall into three broad categories: those from inside the company, those from rivals, and public policy challenges that could bring regulatory controls and tarnish Google’s reputation and brand.” The Times article in particular does a good job of getting specific on those challenges. Bloomberg has also suggested that Google is facing some difficulties. “After beating down rivals, Google’s dominant position in the $40.6 billion online advertising market is showing cracks.” Investment manager Kevin Landis points out that the company is heavily focused on one channel for its income and, “It’s scary if that ever started to go wrong.”

As Its Stock Tops $600, Google Faces Growing Risks
New York Times

Google Shows Vulnerability After Losing Time Deal
Bloomberg

Internet Ad King Skimps on Own Marketing
Xinhua News Agency

Google Advertises Itself Little, Sells to Others a Lot
FinancialWire

Google & DoubleClick

In an effort to further expand its advertising empire, or to defend it from encroaching competition, Google intends to acquire DoubleClick, for $3.1 billion. The move is similar to that of Microsoft’s acquisition of aQuantive, a DoubleClick competitor, for $6.1 billion in May. (Microsoft was forced to take aQuantive when it lost out to Google on DoubleClick.) It is also similar to purchases made by Yahoo!. Google’s deal differs significantly from those of its competitors in one key way: it has come under far more scrutiny. Google recently found itself in a U.S. Senate hearing where it defended its stance against competitors and consumer advocacy groups.
What is being seen now in the Google-DoubleClick debate is in some ways very similar to what was seen in the lead up and aftermath of the recent Microsoft EU debacle. That is, it appears companies may be trying to use the legal system as a tool to block the competition.
On the other side of the campaign against the deal are consumer advocacy groups which feel that Google will end up retaining far too much data about users for anyone to feel safe.
Something else is revealed in the situation. It is the change of color of the spotlight on Google; it is no longer rose colored. Google is growing up and that growth is presenting them with a new set of challenges. Will Google be able to face the challenges of a major-leaguer while retaining the identity which has helped it get this far?

Microsoft’s Right to Fear a Google/DoubleClick
TheStreet.com

Google Defends the DoubleClick Deal
BusinessWeek Online

Google’s DoubleClick Purchase Questioned by Senator
Bloomberg

Yahoo! Improves Its Search

Following the lead of its rivals, Google, Microsoft, and Ask, Yahoo will Google, Yahoo! has released an upgrade of its services. According to Yahoo!, “The new Yahoo! Search was designed to better understand user intent and get consumers to the results they are looking for in one search.” It promises improved results and will integrate audio, video and photos directly into the search results. As stated, Yahoo! trails the other major search engines in releasing similar improvements. Microsoft released its upgrade in a few days earlier, Ask.com in June, and Google in May. As the name Google chose, “universal search” implies, search sites are moving toward showing audio, video, and images alongside text in search results. As the convergence is seen in the major engines it brings to mind the idea that the more things change the more they stay the same.

Gunning for Google
BusinessWeek Online

Yahoo! Juices Its Search Engine
BusinessWeek Online

Yahoo Hopes New Features Will Help It Catch Google
Seattle Times

Microsoft and Yahoo! Update Search
Information Today