Okay received an email this morning directing me to an article on Business Week about the power Google now has. I will say from the outset I think Google are brilliant, but to be fair to REA, Domain and others we should not just make it as done deal that they will be all powerful and all good.
However they will be in my opinion and here is why!
They have built a 13 Billion USD per annum giant from being good for consumers and great for business. They have stated that they are interested in any markets that people need information in. They then sell unobtrusive advertising to 3rd parties alongside this information.
Example: Search
Their search engine is not perfect, but it is utterly user friendly, it is lightning fast and it has an interface that allows users to get better at using it – without them knowing it.
Old Style Mentality: Yahoo and Looksmart lost the plot when they started deciding that paying advertisers in search results and trying to make it look like search results was a good thing – end result – consumers left in droves.
Example: Google Maps Business
Created a system that allows users to search for any business in the USA via a map and a clever interface and now has launched in Australia. Will sell advertising alongside this information.
Old Style Mentality: News Ltd and NineMSN launched local business searches that made local business pay over $700 per annum to have listings and allowed advertisers to create ads alongside listings. End result failure.
Example: Google Analytics Allows users to add code to their site and track results of visitors, massively powerful application for users who want to make it work. The more you know the better it becomes. Next they will release results by category and render Nielson and others useless and create a standard measurement tool.
Old Style Mentality: Well you just paid for it. With Nielson the 15 or so real estate sites in Australia that can afford to pay the fees for the privilege of having their code in your site and then get charged to get industry wide results is another example of having it both ways. Nielson will continue to vb3e useless for all of us unless they provide the code for free as only the big boys can play.
Google Real Estate?
Will provide listing system or XML data feeds for free for all agents across the world. Will create a search engine like the current Google model (same interface millions of people are used to) that either shows full details or more than likely links directly to an agents website. The system will be fast free and the worlds most popular system within months generating an extra 2 billion dollars of revenue per annum from unobtrusive 3rd party advertisers. Agents who have a standards based website development and an XML document will easily be able to set up daily exports.
In my opinion Google would risk everything they have gained by changing their business model to charging customers to supply content. It would render them a spent force and I can never see them do this. The challenge for companies like REA and Domain is to start thinking like Google and changing their business model before it is too late. If they are too late shares will not be worth anything. Even a Google announcement would render their share price in half in a day. I am sure they are trying to get into bed with a Google of this world as I write this. But in my opinion Google will not be interested, they are just too small and too cumbersome for a company like Google. But they will try!
REA has already announced that they are spreading the listings to over 120 other websites. I love that idea but you have to ask yourself this question. At the current figures and with nearly everyone having access to the Internet from home or work are there many people left that do not search for real estate online?
So do you think they are too powerful? Do you think I am right or wrong? Will Google even do it?