Business Services Industry

Industry Expert Warns That Google Ad Plan Puts Its Core Search Business at Risk; InfoCommerce Group CEO says Google May Be Losing its Direction

Business Wire, April 29, 2005

PHILADELPHIA -- Russell Perkins, CEO, InfoCommerce Group Inc. (ICG), the leading consulting and research firm serving the online data publishing industry, has warned that Google, Inc. (NASDAQ:GOOG) is in danger of losing its leading position in the world of Internet search. Perkins bases his warning on Google's decision to introduce advertising options that are not tied to search keywords.

In the April 29 issue of InfoCommerce Group's weekly electronic newsletter, ICR Perspective, Perkins writes of Google, "Relevancy, the cornerstone of all its advertising programs, is now optional. After decrying the inefficiency of cost per thousand advertising for years, Google is now embracing it."

Perkins writes that Google plans to offer graphics, animation and other elements that will let advertisers aggressively clamor for users' attention, making Google "just like everyone else." Perkins contends that as Google starts to add graphical advertisements, its site will start to look as busy as all of its competitors and its Spartan elegance which spoke of speed and focus will disappear.

Perkins continues, "What's perhaps most worrisome in Google's decision to even more intensely focus on advertising is that this may well lead to a reduced emphasis on its search engine. The minute Google starts to forget why people come to its site, they will stop coming. The business of search is too competitive and too demanding to take your eye off the ball for very long."

Perkins' complete article is available at http://infocommerce.typepad.com

ABOUT INFOCOMMERCE GROUP INC.

InfoCommerce Group provides consulting and research to its clients -- publishers of commercial databases from nearly 30 companies in seven countries, ranging from multi-nationals, to Internet start-ups, to family-owned publishers. InfoCommerce Group also publishes InfoCommerce Report - the influential monthly print newsletter - as well as a growing list of books and special reports. It produces the annual InfoCommerce Conference and the InfoCommerce Models of Excellence list and also identifies opportunities and coordinates investments in early-stage database content companies. For more information on InfoCommerce Group please visit http://www.infocommercegroup.com, or call (610) 649-1200, ext. 252.

COPYRIGHT 2005 Business Wire
COPYRIGHT 2008 Gale, Cengage Learning

 

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