So there have been a few big stories in Search that I thought I’d comment on. I know it’s a bit late, but really, the Steelers are going to the SuperBowl, so I’ve been preoccupied.
First, it became known about the DoJ subpoenas. Essentially, the short version is that the DoJ subpoenas query log data from the four major search players (Microsoft, Yahoo, AOL, and Google). Microsoft, Yahoo, and AOL, seeing that this could be done without revealing any PII (Personally Identifiable Information), complied, thinking this was no big deal and not worth the fight. Google, after presumably dragging their feet and trying to get out of it, finally got sued by the DoJ to comply, and promptly vowed to fight this.
Unsurprisingly, everyone is even further in love with Google, and pissed that Microsoft, Yahoo, and AOL rolled over. In particular, the main issue I see is that people are worried that when the government does come by and ask for this information that does contain PII, the three named will again roll over, whereas you know Google will fight.
The other fun bit is some choice quotes from Yahoo’s CEO, Terry Semal, and CFO, Sue Decker. From the CNET article:
“We don’t think it’s reasonable to assume we’re going to gain a lot of share from Google,” Chief Financial Officer Susan Decker said in an interview with Bloomberg News. “It’s not our goal to be No. 1 in Internet search. We would be very happy to maintain our market share.”
And comments by Yahoo Chairman Terry Semel after the company posted earnings results a week ago were even more shocking in their praise of the company’s chief rival.
“Frankly, Google has done a better job than us,” Semel told the Associated Press. “It’s like we built our house first and someone came along and built an even better house.”
Certainly, Yahoo’s now trying to back off that on their blog… but really, you’ve got quotes from the CFO and CEO… synchronized gaffes?
Here’s my take on both:
The subpoena — frankly, this feels like marketing and PR to me. Not to belittle it, it’s amazing marketing and PR. There’s a ton of paranoia and fear about privacy, and while most companies are saying they protect privacy, few are actually doing anything to demonstrate they are. Standing up to the government, even on something that isn’t really involving private information, is certainly one way to demonstrate that. And when your competition doesn’t do anything, well, it isn’t a surprise that nearly everyone sees that Google as a company that stands up for people and companies like Microsoft don’t.
Welcome to 21st Century Marketing. Simply put, what has been and will continue to be one of the most important assets for Web services, be it e-commerce or search, is trust. Amazon.com solved this early on with a lot of work on credit card security (they created the Credit Card Motel - cards check in but don’t check out, and had educated customer service to talk to you when you called). B & H Photo and Video managed to be (AFAIK) the only photo outfit in New York to gain trust… the rest (including Adorama, which does business with Amazon) continue to demonstrate why they’re not to be trusted. Google is standing up to the government. What does Microsoft do here? We issue security patches on Tuesdays and make you reboot your computer. Now there’s a warm fuzzy.
And for Yahoo… well, I have no doubt that a number of their team is focused on beating Google (and keeping us at bay) and being #1. But they’ve been pushing out a ton of stuff over the past couple of years — such as Yahoo 360, acquisitions of Flickr and del.icio.us, and so on. And they have gained maybe a point or two. So I wonder if Yahoo management is now looking at Search as a cola market — the market shares are pretty well set, and while you may see a point gain or loss here and there, what really causes market shift is a different segment — e.g. people choosing water over Coke OR Pepsi. And that’s what I think Yahoo means — they’re not going to be about search, they’re going to try and be about something else and get people to move that way. Now, I don’t think that’ll work, but then again, I work for the competition. 