Amazon is “biggest search competitor” – Google
When thinking of Google’s competitors in the search engine market, you might think of Bing or Yahoo, or even Ask.com. You most certainly wouldn’t refer to Amazon as Google’s major competition. But it seems that is exactly what Google Chairman Eric Schmidt has done, naming Amazon as their “biggest search competitor” at a recent speech in Berlin.
You might not think of Amazon when thinking search engines, but as the world’s largest online retailer, if you’re looking for something to buy, chances are you are going to look for it on Amazon. Schmidt also noted that consumers are looking for a wide variety of answers on Amazon. “They are obviously more focused on the commerce side of the equation, but, at their roots, they are answering users’ questions and searches, just as we are.”
“Someone, somewhere in a garage gunning for us” – Eric Schmidt, Google Chairman
Although Google still holds a dominant 90% share in the search engine market, Schmidt said that he was still wary that “someone, somewhere in a garage gunning for us”. Just like the very Google that started out in a garage back in 1998 with founders Larry Page and Sergey Brin.
Amazon moving further into Google’s territory
Amazon may not be coming from a residential garage though it’s fiercely determined to gain a share of Google’s territory in media & advertising services. Just this August Amazon announced that they would be investing $1billion to acquire the game-streaming service Twitch, which had already been in late-stage discussions with Google. The acquisition is a far-cry from selling books & housewares, but Twitch provides an opportunity for Amazon to build up its media business and gain a huge amount of content; the type of content that makes Google the search engine it is today.
Amazon to launch Sponsored Links to directly compete against AdWords
In addition to Amazon’s investment in Twitch, by the end of the year the world’s largest online marketplace is set to launch a direct competitor to Google’s AdWords, Google’s most important revenue source. Amazon’s advantage over Google is it’s treasure trove of consumer preferences and shopping data. Their insights into buyer behavior is something Google can’t match. For businesses looking to reach a consumer audience, this can be a significant improvement over Adwords.
Meanwhile Google have made improvements to make their own search engine more shopping-friendly, announcing just a day after Schmidt’s remarks that they would be doubling same-day product shipments and following Amazon by investing in drone deliveries.
Undoubtedly Amazon has a lot more work to do, as does Google. This is not the first time the two internet technology giants have brushed up together and won’t be the last. With Amazon wanting to be the top online destination for people searching for items to buy, could Amazon really be the next big search engine?
What do you think about Eric Schmidt’s claims and will you be using Amazon’s new advertising network?
