Google Pack - What's in it for Google

IanFogg | January 16, 2006, 05:25 PM

Ignoring the obvious but shallow: "because they can" / it seemed a "really good idea" / to annoy Microsoft / and Larry Page aspired to command the stage at CES '06 in the way Steve Jobs has done many times over the years at Macworld....

Potential benefits to Google of the pack approach:

1. Further expand existing search revenues.

Google could target websites that provide an index of software downloads; many of these already sell paid placement ads and sponsorships, such as cnet's downloads.com . So, alongside 'web' 'images' 'groups' and 'news' tabs on its front page, Google could add a 'software' tab and sell ads alongside the results.

In other words - Google could use this to generate more searches with Google, and therefore more search-related revenue.

The key consumer benefit of the pack is ease of updates through the central Google updater software. This happens to provide Google with both a route to collect anonymous data (opt-in) and a channel to distribute software. The data adds to Google’s consumer insight engines, and so boosts the value of this software distribution channel for software publishers.

2. Pushing Google software onto consumers’ desktops strengthens consumer ties to Google, and will encourage consumers to do more searches with Google, which equals more search ad revenue.

With Google diversifying into areas that are the traditional preserve of ISPs and media companies (email, telephony/VoIP, video/TV, IM, etc.) Google may find it harder to work with those types of partners to market its products. If consumers use Google PC software -- like Google desktop search -- then Google has strengthened its user relationships.

Additionally, with web browser innovation still slow, despite Firefox/Mozilla (IE still has the vast majority of the online population), Google's PC software enables Google to innovate and experiment with new products and revenue possibilities without being limited by the abilities of the prevalent web browsers in use.

3. Improving the consumer experience of the Internet improves the foundations for Google's Internet-based business.

Google is dependent on the quality of the consumer experience of the Internet. Yet, the main tool for using the Internet, Microsoft’s Internet Explorer, has barely changed in five years. By distributing Firefox as part of the bundle, Google spurs web browser innovation by encouraging Microsoft to innovate and accelerate and deepen its IE7 plans.

Norton Antivirus and Adaware also help consumers manage the daily pains of malicious software thus indirectly helping Google. If consumers become too annoyed by the dark side of the Internet, they’re likely to spend less time and money online. These products reduce those annoyances.

It's early days, but I see some promise in Google Pack. However, please don't ask me to say nice things about Google video whatever you do. Clients - send an inquiry if you'd like to hear a critique of Google's video efforts.