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Google Succeeds Where Governments Fail
Home :: Computers & Technology :: Internet
By: Jem Shaw Email Article
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With Google now recognised as the UK’s number one brand we’re seeing the developing maturity of an Internet-controlling corporation. Google has been remarkably subtle and intelligent in taking control of the Internet. They won the search engine wars some time ago, effectively defining the way Websites are developed and presented. Governments and the EU have tried to do this and failed.

The Rise and Rise of Google Checkout

It seems certain that we’re about to see strong growth in take-up of Google’s checkout system for buy-online Websites. Google Checkout is a good example of the company’s subtlety. EBay’s PayPal has a long-established lead here, but it’s regarded as e-commerce for amateurs; it’s a great way of selling Billy’s outgrown bicycle, but there’s no real solution here for serious Internet marketers. By contrast, Google has introduced a feature-rich, scalable payment solution that’s easy for developers to implement.

David Ogilvy always maintained that having a product that delivers what your customers want is an essential for sustained market success. Google’s satisfied that criterion, but it’s then raised the stakes by a clever offer proposition: free order processing to a value of ten times your pay-per-click marketing spend. I have a client spending around £6,000 a month on Google Adwords. Effectively that gives him free order processing, which makes alternatives like ProtX or the infamous HSBC payment gateway look ludicrously expensive.

But Google’s cleverer still, using their Checkout puts a highlighted flash on your paid Google advertisement, which is already shown to be increasing click-through rate. This is going to make all of us more aware that Google Checkout exists and, sooner or later, every one of us will have set up a purchase account. Now the snowball rolls. Once you’ve signed up, it’s easier to buy through a Google Checkout than anyone else’s, and the alternatives start to die.

I foresee Google Checkout becoming the de facto standard for buying online in under twelve months. EBay is actually banning it from its auctions. This looks very much like a finger in a dyke: it may stop the leak for now, but the water pressure’s going to keep on building on the other side of the wall. PayPal may have something under development, but they’re going to need to be very clever not to be forced into a "me-too" style of marketing.

The Responsibilities of Market Leadership

It’s clear that, with the success of Checkout, Google has raised the bar and further strengthened its grip on the market. The survey carried out by Superbrands of the UK’s top 500 brands showed Google a clear leader, despite being only ten years old – the average age of companies in the top 50 is 90 years.

We have to watch carefully how Google handles this power. Microsoft has demonstrated that it’s possible for a market leader to be a benign dictator, and has largely proved laudably ethical during its reign as the world’s biggest brand. Signs so far suggest that Google may be similarly responsible, and that bodes well for the Internet as a whole.

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Jem Shaw is Marketing Director and co-founder of XSEO, the UK-based search engine optimisation specialist. Drawing on 30 years’ marketing experience, 15 of which have been primarily in digital media, he’s a regular speaker at marketing seminars and conferences

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