The Mobile Stampede Accelerates

There were a couple of interesting items this week which point to the continuing ascendancy of mobile. Google inked a deal with Apple; Google will pay Apple a cool 1Billion in cash “unmarked 20s I imagine” to remain the default search on iPhones through 2014 and Comscore  announced over all search data for 2012 and although search continues to grom desktop search saw its first decline since…well since ever. The rapid growth of mobile and vertical search growth on sites like Facebook and Amazon contributed to the overall decline.

In parallel announcements Google’s Q4 was good but not great. It continues to see a decline in click prices (6%) YOY a decline which is now 6 quarters old….and again driven by the ocean of mobile clicks with in sufficient inventory to support the price. This is a tough spot for big G. In an attempt to at least partially stem the bleeding they recently announced a self service online package incorporating desktop and mobile targeted at local businesses.  It’s a clever product which (in theory) let’s SMBs target searchers based on location and time. For example a doughnut shop might want to focus on the 7-9 AM slot whereas a wine bar might target happy hour.

As always adoption by traditionally recalcitrant SMBs is going to be the main issue. Cost is also going to be a factor. The bundling Google is offering essentially rolls the mobile clicks involved up to a desktop click price…which is usually significantly higher than mobile. That’s great for Google but not such great value for the SMB. You have to wonder why Google continues to treat SMBs as cattle fattened for slaughter with their ‘do it for me’ packages which consistently maximize Google’s value ratether than SMB returns.

There’s also an interesting trend I have observed from various recent Google presentations (especially to local/SMB audiences) where they focus of ROI which shows up all over the place not just in the obvious places. It’s an argument which is well made, but sounds a little desperate “don’t just look at directly track-able obvious conversion metrics, check behind the sofa too”. That’s a tough message to receive from the super thin smart young things which Google sends out to preach to the masses. In all my years of knowing Googlies I have yet to meet any with any kind of weight issues…there are literally no over weight Google employees. That’s perhaps not surprising when you read about the latest Google project to provide street level views. Over the summer they send a bunch of their brightest and best to cool hard to reach places like the Grand Canyon to show the rest of us what it looks like. This week they released detailed renditions of 38 top Ski resorts….come on guys we know you are super rich…but what’s next great yacht basins of the world?  I will be off line probably all of next week looking for Googlies doing street level views of Maui. Aloha till then.

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