Google Faces Apple in Mobile Search Wars
March 24, 2012
Business Insider recently reported on the release of a research note arguing that the rise of the iPad is a long term threat to Google, in the article, “How the iPad Could Destroy Google’s Lucrative Search Business.”
How, you ask? According to two Wall Street analysts, Apple will continue to push alternative sources like Siri as a way to de-emphasize Google’s impact. In addition to this, Siri could potentially hurt Google in the long run by diverting search traffic.
Anthony DiClemente of Barclays writes:
Siri is not a search technology; however when paired with services such as Wolfram Alpha and Yelp, it can circumvent traditional search engines and provide the user with answers that may have originally required a search. Because Siri is a non-visual medium, it does not provide the ability to present users with clickable ad links, an area where GOOG derives most of its revenues. Performics estimates mobile could account for 20% of all paid search over the next 6 months, and Google has said 2/3rds of all mobile searches are on Apple iOS devices.
While placing such a high emphasis on Siri’s impact on search may be a bit of an overstatement, unlike other companies like Microsoft or Amazon which have a variety of revenue sources, search advertising is where Google gets the vast majority of its revenue. If Siri threatens that search ecosystem than Google could have some major challenges to overcome down the road.
Jasmine Ashton, March 24, 2012
Sponsored by Pandia.com
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