Digital Thoughts
by Jay Weintraub 

 It’s been three years since Google launched Google News. Three years – that is unbelievable. I use Google News more than any other site, perhaps even Google itself. Like many Google properties, I learned about it from a friend. In typical Google fashion, it relies not on people but machines. Whereas a typical news site might employ tons of editors, Google employs technologists instead. None of the site relies on human decision making, save the logic behind what it considers to be important stories. Certainly remarkable is its ability to make the user forget that no humans are involved. Hardly will one look at a particular story and wonder why it is there. If you are like me, you might wonder why the Xinhua, the official news agency of China, consistently pops up among the top news feeds.


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             What some people have wondered, though, is what does News do for Google. When I first started using Google News, I figured, what a great deal for the news services. Google doesn’t frame their landing pages like some other sites. No, as a service to the readers, once you click, you go straight to the news site – not in a new window but in the same browser window. Classic Google. You will not find a target blank in any of their links. As is the case with all their products, it is all about information and making it more accessible for the user. Their beauty is that they typically do this in a way that makes them money. What makes Google News different is that there doesn’t appear to be a monetization strategy… not now, and potentially not in the near future.

            Not that I really noticed, but Google News is still in “Beta.”  For such a refined product, it hardly seems like it is still in Beta. Among the reasons that it no longer appears in Beta is that is has captured not only a large user base but has also earned a spot on the coveted front page. If one peruses the Google Labs section of the site, you’ll find many cool ideas that have existed longer than News but haven’t made it out of the back pages. The majority of those products that have made it out of Google do so because they make money not just because they are popular. As mentioned above, Google doesn’t seem to care whether it makes money.

            One journalist criticized Google for that fact. What I didn’t realize is that Yahoo and MSN make millions per year off their news sites for what appears to be a similar service – an aggregation of news that links to the news page. It was suggested that Google would be legally prevented from putting ads up on its news page due to a concept known as “fair use.” Not being a lawyer I can only surmise what “fair use” implies – people don’t want you making money off what they think they own. I am probably a little naďve in wondering what the big deal is. Google in my opinion is helping out these other news sites by driving traffic their way, and for free.

            To suggest that Google made a mistake by creating the News service the way they did might be a little short-sighted.  know that if I were to create a top 10 property that attracted millions of visitors monthly, I might be a little disappointed to find out that I could not make the big bucks its popularity would normally garner. To shut it down for that reason would also be short-sighted, and chances are Google not only has thought this through but knew it from the beginning. For a company that doesn’t ostensibly spend a lot of money on outside marketing, they have quietly built one of the most amazing and powerful brands. I think it safe to say that Google News represents their form of marketing. Rather than blast money on the TV, they create value for the end user that makes it appear as though they are doing something truly altruistic. And when one’s business is built on a recurring user base and less on new users, it makes sense to build a bond that would make your users more likely to use your services.

            Does the Google News study apply to those of us in the direct marketing space? Of course it does. We all have customers. We all have people that could benefit from our thinking slightly outside of the box, helping them in ways that don’t appear obvious or likely, knowing that in the end that will make us more money. The beauty of Google is that they, more so than others, are able to quantify short term costs compared to potential long term gains. As I tend to believe, Google provides us all with better access to information, not just those that use it to search.

Jay Weintraub

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