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Why Google is 'right to be paranoid'

Brad Reed | March 26, 2012
Google is still master of the search domain, but that hasn't stopped the company from looking over its shoulder.

Google is still master of the search domain, but that hasn't stopped the company from looking over its shoulder.

The latest survey from the Pew Internet and American Life Project found that 83% of American Internet users say they use Google as their primary search engine, vastly more than any other individual search engine. Yet despite this, Google is constantly implementing changes to its model, most recently in its efforts to increase its semantic search capabilities and its attempts to provide more direct answers to user queries rather than the standard list of websites.

Gartner analyst Whit Andrews (pictured) says that Google actually has a good reason to be paranoid about competition despite the fact that its brand is synonymous with online searches. In this question-and-answer session, we'll ask Andrews about what challenges Google faces in its quest to remain on top and what it would take for a competitor to knock Google off its search perch.

Network World: Google is far and away the top search engine in the world, having an even greater market share of search than it had a few years ago. Does Google really have to worry about other search engines eating up its market share since it's already so firmly entrenched?

Whit Andrews, analyst for Gartner: Google will always feel competitive pressure. Bing seems to have woken Google up a little bit. Google is right to worry about competitive pressures from other search engines because there is no operational cost from switching from one search engine to another.

At the same time, Google also has some advantages that you can't eliminate. If you're using Google, you're one of a billion people using it, which means they have lots of data to help them determine the best results. Google has to take advantage of that in order to continue to grow their business. So that's their biggest challenge. Google is aware that switching costs are not large, so they better stay paranoid and they've done very well at staying paranoid.

NWW: What are Google's concerns going forward in the search market? How are their competitors differentiating themselves?

WA: There are a number of differentiation strategies but they all come down to delivering better approaches to search for different individuals. Microsoft right now is working hard to suggest that there are issues around the way that Google does business and suggesting that Google's search results aren't as good as you may think they are.

Another way is to differentiate based on your interface so you can tell users that they can find what they want easier with our search results set. You can also utilize different information, such as when Bing incorporated Facebook information into its results before Google could even incorporate Google+.

 

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