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Archive for May 21st, 2008

Not everything Google touches turns to gold. These are some of Google’s biggest nonstarter Web services, software programs, and business moves.

Google Incorporated is arguably the most successful Internet company today. But Google didn’t get to where it is without takings risks–some of which have failed spectacularly.

For example, remember the Google Accelerator, which was supposed to speed up Web surfing? (A dubious claim, but least it was free.) But you had to pay to get a Google Answer, and eventually people stopped asking. Google Video did so well that the company finally gave up and shelled out big bucks to buy YouTube. If you can’t beat ’em, buy ’em.

Some Google flops lasted no more than a day and then vanished without a trace. Other Google efforts have been left to languish like a neglected orphan inside Google’s labyrinth of Web services. Still other dogs were released as betas nearly five years ago and are still trapped in Google Labs with apparently little hope of escaping the test tube.

Our list of Google’s lead balloons is by no means exhaustive; if you have other candidates, by all means, point them out in our comments section below.
Artwork: Chip Taylor

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After vague statements over the last weeks about internal investments that will allow it to compete in search without Yahoo, Microsoft on Wednesday laid out more of its vision for improving on its current “underdog” position in search.

While describing some new search technologies from Microsoft and some future ideas, executives were also cautious to repeat that theirs is a long-term vision that may take a while to spell success for the company. They spoke during an annual get together for advertisers, this year hosted on Microsoft’s campus in Redmond, Washington.

“I have to say, it’s kind of fun to be the underdog,” Microsoft Chairman Bill Gates confessed. The company has put an unusual effort toward building the team that’s working on search, he said. “We’ve done more on this to build a great team then on any effort I can remember,” he said.

Users should expect to see new features every six months from Microsoft’s search group, he said. “We have a long-term commitment,” Gates said. The company is willing to experiment, he said.

Wednesday’s launch of Cashback represents the latest new feature. When Web users search for a product on Live.com, results may feature a Cashback tag. If users end up buying a product with the tag, they’ll receive money back.

Microsoft expects that the concept will create a whole new business model, though it also expects that it might take some time for it to shake up the industry. “We understand this is a journey. When you change the user experience or business model, it takes time to percolate through to behavior changes,” said Satya Nadella, senior vice president of the search, portal and advertising platform group at Microsoft.

Gates pointed out how Cashback is different than existing search advertising methods. “In search, when you get those ads, in a sense you don’t get anything back in return,” he said. That compares to other media like TV or radio, where in exchange for advertisements, viewers and listeners get content.

Cashback “gives you a reason why you should use a particular search,” he said.

Over 700 merchants including eBay, Barnes and Noble, Sears, Circuit City, Home Depot, Zappos.com, Overstock.com and Kmart have signed up to advertise as part of the Cashback program. “That confirms there is this opportunity for change,” Gates said.

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