Google Shopping search push bidding rankings or into the machine of enrichment

Mention of bidding rankings, first let people think of is: untrue search results, unscrupulous enterprise false propaganda, as well as the case of many users hurt. For Google, the global search giant, which has been claiming "no evil", it seems to be on top of its bidding rankings.

But Google has recently adjusted its product search to Google Shopping, and to change the past non-commercial mode of operation, from this fall, the results of Google Shopping search will depend on the size of the retailer and advertisers, the ranking of the top products will no longer be the most popular products, but the highest bidder's products. Google has taken the initiative to wear the hat of the bidding rankings.

Google's reasons

Google responds to the idea that this would hurt the interests of its users: Google's move to a purely commercial model of U.S. product search will allow companies of all sizes to compete effectively, said Sam Sameersamat, vice president of Google's product management, in a statement. This helps consumers quickly turn shopping into action.

The reason sounds far-fetched, even without Google's shopping search, the competition between American companies exists, and whether users turn shopping desires into action, the most important reference indicator is obviously not advertising, but the product itself reflects the style, quality, function and the brand image behind the product.

Samir's explanation is that a business partnership with a merchant will encourage them to ensure that higher quality data, such as the exact price of the product, the availability of new products, and so on, mean better shopping results for consumers, which will also bring higher quality traffic to the merchant.

In practice, however, for those merchants who need to pay for the promotion, their most likely logic is that, since it is a paid promotion, and naturally has to focus on the advantages of the product, so the data given to Google will be selective, which is completely inconsistent with Samir's statement, or even diametrically opposed.

Google's push to bid rankings is not good news for small and medium-sized enterprises with relatively weak power. Google's original free product search can provide these small and medium-sized enterprises with more product display opportunities, but also will not increase their operating costs. And the existing charging model will force small and medium-sized enterprises to increase advertising spending, those unable to pay advertising costs of small and medium-sized enterprises, their products (even if the price is very high) will likely be in the consumer's shopping search results ranked back, thereby fading out of the consumer vision, loss of market opportunities.

And the most likely trend in the future is: as more and more enterprises to join Google Shopping in the bidding ads, advertising prices continue to climb, resulting in more and more small and medium-sized enterprises are blocked outside the threshold.

Has Google suffered a business dilemma so much that it has done so to damage its original brand image? Google's revenue of 8.14 billion U.S. dollars in the first quarter of this year, based on Google's 2012-year Q1 earnings, has risen 24% per cent from the same period last year, compared with the $8.15 billion trillion on Wall Street estimates. Google also achieved a sharp rise in revenue in the fourth quarter of 2011. Google does not seem to need to do so.

And it is clear that Google has a reason to take this approach, based on business interests. No company will automatically give up the business opportunities that are in sight, and the bid ranking of shopping search can bring more revenue to Google. But what Google needs most now is to make up for the loss of its image and to prevent its bid rankings from having adverse consequences in practice.

At present, Google search includes pictures, maps, news, videos, documents, calendars and many other channels, Google Shopping search is only one of the channels. And Baidu's previous bidding ranking mode does not set a channel, but the search results are displayed in the Web page, pictures and other channels, so that consumers do not know what is advertising information. It is unclear whether Google will adjust the search results for other channels to match Google's shopping search operations.

The impact of the use of the bidding ranking model on Google will be critical. Can bring huge revenue, will also have a far-reaching impact on the value system of the company. If the operation is improper, appear the false propaganda of the illegal enterprise, and therefore be exposed by the media, the loss of Google will be far more than once Baidu, because the original image of Google is too perfect.

or become a machine for enrichment.

2008, Baidu experienced a wave of bidding rankings, because the illegal pharmaceutical companies to provide search ranking services and profit, Baidu was exposed by CCTV, and encountered a series of critics. Baidu has to apologize for this, and then abandon the bidding ranking model and turn to "Phoenix Nest" system. At that time, Google also stood on the commanding heights of the moral to accuse Baidu, Google Greater China's President Lee Kai-fu Li (micro-Bo) said, bidding ranking is a kind of no future business model. and to ensure that unless there is illegal content or national law needs, Google will not artificially interfere with search results, pay Google will not delete search results, or increase search results. In contrast to current practices, Google's "moral decline" to surprise.

Baidu's bid ranking has gone into the brink of runaway, media reports, from Baidu auction ranking official website statement so declared, apply for Baidu bidding rankings, do not need to sign a written contract agreement with Baidu, just register the account, provide the company name, website name. This means that Baidu does not audit the authenticity of the applicant. And Baidu gave the reason is that the customer scale of more than 200,000, the number is too many, and most customers are from all over the country agents, audit at the operational level is too high.

If Google uses the bidding rankings model, the same problem needs to be faced. In the United States, due to the relatively sound legal system, the vast majority of enterprises operate very standard, Google even in the audit level do not perfect, the consequences are not too serious. Now, Google appears to be interested in entering the Chinese market.

Google is now increasing its recruitment efforts in the Chinese market, and this year Google has also introduced its ADX (advertising trading platform) products to the Chinese market and set up a research and development center in Shanghai. Google's other product, AdMob (mobile advertising platform), according to a person familiar with Google, recently Google also specifically to collect media views on this product and submitted to Google Greater China Mobile advertising director. There are signs that Google is ramping up its placement in the Chinese market.

In the Chinese market to push the auction ranking model, although Google in the moral will be questioned, but obviously can fill the vacancy because of Baidu and some of the market space appeared. For small and medium-sized enterprises, may represent more opportunities.

But in the face of China's market environment, how Google at the operational level, to strengthen audit, filtering out those illegal enterprises, to ensure the standardization of advertising and legitimacy, Google is facing an important issue. At present, Google has not made it clear that in the Chinese market to carry out shopping search rankings, if so, Google needs to have a strong risk control capabilities. Because it's a gamble for Google.