Would you believe it If I say you that 90% of Google’s revenue is from the data it collects from users ? When Steve Jobs released iPhone guaranteeing data privacy, many android users switched from Android phones to them. But, have you ever wondered why there is an issue of data privacy or rather what Google gets by collecting data from users? Google has answers to all your questions, they have maps, Google pay, gmail and what not. Google knows more about you than you know about yourself, they know where you are, what you do and what you want now. The big question is, how do they make money out of it?
Google uses the data to target customers to advertise various products. More than 90% of Google’s revenue comes from its advertisements, the Google ads. If you google solutions for weight loss or hair fall next time when you open google or even YouTube, there will be annoying ads sometimes even helpful ads showing you various products which will provide you solutions for your queries. Google’s data collection is so intense that it can even decode your speech and convert it into google ads. For example: if you tell your friends over a phone call about planning a trip to Paris, then google would throw at you certain sites which would provide you ideal tour packages. In other words, Google would be that annoying salesman who keeps calling you, even after you say no to the product.
A large number of users do depend on Google for buying a product or before checking into a restaurant or hotel because google reviews do help at times. Google has recently entered into the mobile phone industry – the Pixel range of phones which has made an impact in the market. In the coming years, Google pixel could give tough competition to its rivals.
Is the biggest competitor of Google from the mobile phone industry? Probably not. Facebook. But is Facebook the next Google? Not entirely. Though Facebook has not launched a phone. Facebook might not even have the database as Google. But, Facebook is the next best thing to Google ads, maybe even better in recent times. Facebook with its recent acquisition of WhatsApp and Instagram, have a wide data base of users which they use in advertisement industry giving tough competition to Google.
More than a search engine people spend more time on social media with an increased number of famous social media influencers, companies can have a more organized targeted market online. Companies are entering into Social Media to create a web presence. In this digital era, we can find companies trying to resolve issues using social media. There is a lot in the crowd who takes up the issue or a particular service of a restaurant or cab service in social media if its good or bad we do see things going viral. This is why , it is very important for a company to have a high social media reputation. If you have a bad digital image, this could bring your entire company down.
The recent case study of Harvard business school shows that the number of users using the search engine has remained stagnant over the years. In business terms, the search engine has reached the maturity stage with respect to Product Life-cycle curve. Is this because of social media? This is yet to be found. There are no researches so far proving this statement. Anyway, its yet to see what Google would do, in the coming years to face its competition in this sector. Even if the search engine dies, will Google be able to survive? This is a debatable topic.