Google (NASDAQ:GOOG) has rolled out a significant upgrade to its core search offering. It has launched the Knowledge Graph, which lets users discover new information easily. It uses semantic search technology to offer more relevant results than just text based string matching. Now, if you search for anything, Google tries to guess what you’re searching for and narrows it down using semantic search. 
Knowledge Graph improves Google’s core search offering
The new feature also offers a summary of the most relevant match right next to the search results. The match feature is powered by a statistical analysis of the queries by Google’s entire user base, and presents relevant information related to your search query right on the search results page, eliminating the need for additional clicks to get the information you need.
Finally, with the Knowledge Graph, Google is improving information discovery by displaying other results related to your search results, which should improve the search experience, as well as the traffic Google drives through its search engine, indirectly boosting its search ad revenue.
Search advertising accounts for nearly 70% of Google’s overall value. We currently have a $678 Trefis price estimate for Google, which stands nearly 10% above its market price. Google’s search advertising revenue are driven primarily by Google’s dominant position in the search market. Google competes primarily with Microsoft‘s (NASDAQ:MSFT) Bing in the online search space.Notes:
- Introducing the Knowledge Graph: things, not strings, Google Blog [↩]