Here’s How Google Is Looking To Attract More Users To Its Search Engine

An increasing number of consumers search for products directly on a shopping app such as Amazon, especially for online shopping. In response, Alphabet Inc.’s (NASDAQ:GOOG) subsidiary Google is looking at innovative ways to increase searches on its platform. The company recently launched a feature called “Shop The Look” to capitalize the trend of U.S. consumers consulting fashion blogs to find shopping ideas.  This feature allows users to search for a particular kind of outfit and see images of popular fashion bloggers as the search result. Users can then shop for the exact or similar products as viewed in the image, which are displayed as shopping ads once the image is clicked. We believe this feature can ensure that users search for their requirements on Google instead of other apps.  It also allows them to shop according to the latest trends, while saving them the effort of browsing through thousands of online listings to find the right combination of products. This feature can increase Google’s revenues through shopping ads, which will be charged on a cost per click basis.  And it will give the copany a competitive edge over players such as Amazon.

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According to Google, 90% of smartphone users in the U.S.  are not sure of the specific brand they want to buy when they begin shopping.  An Adweek survey reveals that nearly half of U.S. readers consult blogs to find new trends and ideas.  Google’s “shop the look” feature provides users with the convenience of looking at a fashion trend once they search for a particular kind of outfit. They can then buy it directly through various shopping ads under the category. They don’t need to leave Google’s platform to search for vendors stocking the products in the look they are interested in.  Linking the “shop the look” feature with shopping ads can improve advertising revenues for Google. And given the popularity of this feature, more advertisers can be attracted to link their products with this feature.

According to our estimates, Mobile Search Ads is the most valuable segment for Google, accounting for more than 20% of its valuation. We expect Google’s mobile search market share to decline gradually from 84% in 2016 to around 77% by the end of our forecast period.

One of the reasons for this expected decline is increasing dependence of smartphone users on apps. Consumers use the Amazon app for shopping, Instagram app to search images or photos and Yelp’s app for services such as restaurants, etc.  And in each case they are circumventing Google’s search engine. However, Google is working on innovative ways to attract smartphone users to its search engine and move them away from these apps..The “shop the look” initiative is one such effort. Integration of taxi services such as Uber with its Google Maps app is another initiative to encourage users to use its platform more frequently.  There can be an upside to our price estimate, if through these efforts, Google is able to maintain and increase its mobile search market share.

Google is in a challenging environment as in-app searches threaten its search engine. Innovative ways to attract users to its platform is critical for the company to increase its traffic. We believe the “shop the look” feature holds strong potential as it merges search with e-commerce, providing users with both the convenience of identifying the latest fashion trends and the option of purchasing these products. This innovation should drive revenues for the company in the future.

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