Interesting post from Harvard Business Publishing blog suggests Google is a one trick pony and will struggle to learn new tricks. It suggests Google will struggle to make the move from search advertising into other advertising markets like radio, tv and newspaper advertising. To be successful in other markets they will have to play by other people’s rules.
Principle reasons being that:
- There is no control over advertising placement in these markets.
- There are no obvious market making mechanisms in these markets that Google could Google-ize.
- Existing players have entrenched interest in keeping status quo.
You can argue a counter-case on any of these points that suggests Google could be the one to capitalise. (IP radio and TV seem to offer the option of precise targeting and this is the way the industry is moving for example).
I think this misses the point about what Google is up to – for good or evil.
The most interesting thing about Google and Microsoft suggests to me that such cash rich behemoths have bigger ideas in other markets. The work they are doing on patient record management and in the healthcare sector in general is worth thinking about.
This is a MASSIVE industry with established incumbent players who seem to be asleep on the job whilst some relative whippersnappers are out to steal their lunch.
Most CEOs in established industries could have read ‘What Would Google Do?’ by now so they could have been warned…