Google’s Power

SearchEngineWatch writes about a presentation made by Jordan Rohan, managing directory of equity research for RBC capital markets:

Rohan said that his analysis suggests that Google is more dominant than other ratings agencies, such as comScore, suggest. “The balance of power in the internet is now more skewed than I’ve ever seen it (since 1999). Google is more in the center of the internet today,” he said.

Eventually, he said, Google’s competitors will mimic Google well enough that they’ll catch up. This will force Google to differentiate, and he thinks video will be a key part of that differentiation. He also said that Google’s new Checkout feature is “transformational.”

“Google will absolutely give you better inventory to target,” said Rohan. “At the same time Google has mechanisms in place that will raise bid prices. Google is absolutely capitalistic in its maneuvers. They care almost as much about revenues as they do about relevancy,” he said.

“It’s almost unheraldedthere’s no switching cost, so the amount of loyalty that consumers are showing to Google is unbelievable,” said Rohan. “My guess is that whoever ends up toppling Google someday is a company that may not exist today.”

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Rajesh Jain

An Entrepreneur based in Mumbai, India.