There are so many Google product releases and industry news bulletins about their implications, it’s easy to miss a big one. We’re calling attention to www.focusontheuser.org, a project designed by interested Google-watchers, to highlight a monumental decision by the search giant: to overrule its ranking algorithm in promoting Google+.

The product in question – “Search Plus Your World” – was marketed as simple elevation of relevant social links in search results. The people behind focusontheuser built a widget to demonstrate that, actually, the new product cherry-picks Google’s own social results from Google’s index, no matter what the holy algorithm has deemed most relevant to the user’s query. It does indeed look very much like “Search Plus Your World” lifts Google+ results above Twitter, Facebook and LinkedIn results that Google’s search algorithm correctly ranked higher.

This flies in the face of Google’s culture, core to which is the belief that optimal engineering is the optimal business plan. No wonder the decision is causing a wave of disgust in the developer community. It’s fascinating that Google has released no statement defending the decision (we requested a comment and waited 48 hours before publishing this post). Google resisted the business case for advancing its own properties via search throughout Eric Schmidt’s 10-year tenure as CEO. It seems co-founder Larry Page feels differently now that he’s the one reporting quarterly earnings. The fact that Google’s communications department doesn’t have its story straight yet suggests this huge decision wasn’t even thought through.

As newspaper circulation continues to decline, so does the reach of printed ad circulars/free standing inserts, which are important drivers of both brick and mortar and ecommerce sales. Along with challenges of decreased reach, retailers are also finding that the promotional lift of circulars is declining. According to research conducted by Nielsen, printed circulars are less effective than they were 6 years ago. In 2010, the average ROI boost of printed circulars was 20% compared to 28% in 2005. Retailers are faced with the challenge of maintaining and/or expanding the reach and efficiency of circulars in a declining print market.

In many ways, the internet has replaced the Sunday paper. According to an Audience Insight Survey released in December 2011 from interclick, two thirds of Americans are learning about in-store deals online. In addition, 42% of consumers prefer online advertising to newspapers and other sources, and those consumers who see in-store deals online are more likely to visit a brick and mortar store. This is especially true for electronics, grocery, drug, department, and clothing retailers.  Many retailers have made circulars available on their websites; however the associated user experience of these is fairly poor and very few can be viewed on tablet or mobile devices.

Google has acknowledged this challenge and recently launched a new product that offers an interactive and personalized circular experience aptly named Google Circulars. This product was launched in October 2011 with a small alpha test of US retailers including Macy’s, Best Buy, Home Depot and others. The success of the alpha has led Google to move this product into a beta release launching in Q1 2012 with an expanded set of retailers and vendors.

Google has always had an emphasized focus on the retail industry, and many of the beta opportunities they have rolled out over the past few years have been designed specifically for retail partners. They have increasingly understood the challenges retailers face in utilizing online channels to drive in store purchase. With Google Circulars, they are hoping to further bridge this gap by offering a more robust and user friendly digital circular solution.

Google Circulars presents an exciting new opportunity to utilize digital circulars in a highly customized and targeted way. The breadth of data that Google has access to use in serving personalized circulars is unprecedented and this new ad format has shown early success. As with any new marketing opportunities, there are risks involved in being an early adopter. The lack of proven success, as well as the potential resources required to run such a program, are very real barriers. In addition, the monthly minimum media spend would result in incremental cost or reduced spend in existing tactics. Success of this initiative is ultimately dependent on consumer adoption and engagement. While it’s too early to say whether or not Google Circulars will be a success, this product offering does attempt to fill a growing need of offer communication between retailers and consumers.

To read the full Razorfish Health POV on Google Circulars, click here.

There’s been a lot of speculation about the future of Google+ since it launched last June. Recently, we heard about their strong December showing with a hefty increase in sign ups, but the jury is still out on whether this offering will end as a flop or resounding success.

After going public in September, the nascent social network now has around 50 million active users. Some estimates put the number over 60 million, with still others going as high as 150 million. The approach so far has been to emphasize the use of Circles which allows users to easily control what they share with members of their network. This, along with Hangouts, has formed their core value proposition thus far. While it may not be destined to overtake Facebook as the king of the social world, it may be able to carve out its own niche and help Google stay relevant in an increasingly “social” world. One can only imagine how targeted Google could make its ads once it pulls in a user’s Google+ info.

Either it will be a huge success or it’ll suffer the fate of Buzz and countless other failed pet projects the internet giant has launched in the past. The new network certainly has several things going for it, so this could be a case where the final ruling lies somewhere in the middle.

Brands Can Augment Paid Search and SEO Efforts

With the introduction of Google+ pages for businesses, one trend we have noticed is that Google+ pages are enjoying increased visibility within organic search results. As reported by multiple sources, many top brands now have Google + pages which now appear in organic results, taking up a decent amount of real estate to boot. This could serve as a clear sign to businesses that setting up a Google+ page is akin to an investment in SEO, allowing them greater presence on and potential dominance of the search results page.

Integration with Android Devices

The latest generation of Android smartphones are now optimized for Google+, allowing the social network to grow along with the Android platform. The Android OS already owns about half of the US smartphone market. As adoption grows, Google+ will come along for the ride, enjoying the benefits of Android’s success. With the activation of every new Android device, Google+ will be given the opportunity to increase its ranks.

Google’s Acquisition of 200+ IBM Patents

Google’s recent move to purchase patents from IBM was undoubtedly an effort to bolster its defenses against litigation of the intellectual property variety threatening Android. Yet, there were some curious patents in its latest haul that could hint at new products/innovations. Perhaps the most interesting was a patent detailing the analysis of user-generated content to ascertain potential interests and preferences. The system would use semantic cues from user posts to identify individuals who may be interested in particular topics without having to rely on self-reported interests. This would allow Google+ to connect its users with other individuals who may share their interests based on their behavior within the Google+ community and would also allow for even more relevant search results.

Since we all know Google is in the business of providing results that are as relevant as possible (read: those most likely to be clicked), this validates the purchase of these patents. Also, the benefit to advertisers cannot be ignored, as this could serve as an invaluable tool allowing for more precise targeting of potential customers.

If Google+ is to survive, it will need to distinguish itself. Given their preeminence in search, the continued growth of the Android platform, and any potential innovations they may have planned (whether related to newly acquired patents or not), Google may carve out a truly unique identity for its little social network that could. They will need to continue highlighting the benefits of Google+ and how it differs from its competitors, so that users are motivated enough to try yet another social network. The road ahead will be a long one, but if they arrive at their desired destination, it will be well worth the effort.

Following the 2010 acquisition of travel software company ITA Software, Google has been actively rolling out ‘experiments’ in the travel space such as Google Flight Search and Hotel Finder which are an attempt at providing “travel tools that provide faster, more flexible, and more useful results to online travel searches.”

Google’s latest experiment builds on the Hotel Finder tool and is known as a Google Hotel Comparison ad. Given the ad’s prominence within the premium ad space and the potential impact on Hotel advertisers, the Razorfish search team has pulled together a brief POV that should provide some deeper details on what a Hotel Comparison ad is as well as potential implications on the Hotel Industry.

Background

• Google Hotel Finder, the destination of Hotel Comparison ads is designed to maximize the travel consumers experience from discovery to booking
• Google Hotel Finder launched July 2011, an online hotel tool that lets users add Hotels to a short list, isolate desired neighborhoods, select travel dates, view user ratings & reviews, price compare and book through Hotel Price Ads (via reseller or suppliers)
• Hotel Comparison Ads were first introduced Fall 2011 and were eligible on <5% of queries-recently scaling to an unknown number of queries on Google.com

What is Google Hotel Comparison Ad?

• A “house ad” placement that does not participate in the auction, serves in “Top Promotional” spot above the white line within sponsored listings and drives to Hotel Finder

• Does not impact other ads ranking on the page
• Does not impact the number of eligible ads that can appear on the page ensuring all impressions and positions are available to advertisers
• Does occupy the most desirable real-estate within paid results indirectly impacting the value of the available positions (e.g. pushing down the paid listings)
• Hotel Comparison ad is only eligible for hotel-related queries, appears to be serving on unbranded and US only at this time

Implications:

• Google has no immediate plans to iterate to a reseller or supplier ad opportunity at this time

• Geared towards driving traffic to Hotel Finder and ultimately Hotel Price Ads
• With user traction Google has opportunity to emerge as one-stop research and booking platform
• Organic property link is displayed within Hotel Price Ads at point of the Booking, additional paid link opportunity exists through participation in Hotel Price Ads via API integration
• Pushes down paid real-estate available to advertisers through the auction

Additional Reading:

• http://searchengineland.com/google-tests-hotel-finder-as-comparison-ad-104661
• http://www.seroundtable.com/google-hotel-ads-14458.html

We would love to hear your thoughts on the potential impact of Google’s new experiment or even discover how this experiment has impacted your campaigns. Feel free to continue the conversation in the comments below, on Facebook or on Twitter @searchshots.

The Razorfish Search team would like to wish you a healthy and happy new year! We hope that you are enjoying a fantastic holiday weekend, and are gearing up for all the great things to come in 2012!