August 07, 2005
Google & CNet
Posted by Gordon Smith

This story is only a couple of days old, and already bloggers are being told to shut up about it. Well, I have been on the road since the story broke, so this is my first cut at it. (Also, Glenn Reynolds just linked to Dan Gillmour's post about it, so I feel justified.)

The controversy started with this article on CNet, which illustrated some of the privacy concerns about Google by disclosing information about Google's CEO, Eric Schmidt, that was gathered using a Google search. In response to the CNet piece, Google instituted a policy of not speaking to CNet reporters. (See here at the end.) You can read more background in this NYT article or a gazillion other places on the internet.

As you can imagine, most bloggers are having a good laugh at Google's lack of PR savvy. Some are suggesting that Google has betrayed its bizarre company slogan, "Don't be evil." On the other hand, Google employee Jason Shellon defends the company, proclaiming, "I don't ... have to like it when people overstep the bounds of common decency or good sense." Dan Gillmour is in a forgiving mood:

Some bloggers are calling Google ugly names as a result of its ill-considered move, as if it overturns the corporate "don't be evil" motto. Nah. Google is a young company. We shouldn't be surprised that it sometimes acts its age.

My reaction is a bit different. I wonder, what is Google's margin for error in the PR game?

Google's current business model depends on the popularity of its search technology. For several years, Google's technology outpaced its competition, but Yahoo has caught up. Today, search results between the two dominant search engines have a large degree of overlap, and where differences exist, Yahoo often produces superior results, in my opinion. If you want to test this for yourself, try this cool search engine comparison page. (Just type your search terms in the box and click "compare 'em.")

So why do people still use Google for searches at about double the rate of Yahoo? Probably the same reason people buy Google's stock more eagerly than they buy Yahoo's. People are attracted to Google's brand. It's cool, progressive, hip. Whatever the adjective, Google is in fashion ... today. But fashion is fickle, and if I were running Google, I would worry a lot about fashion faux pas like this CNet story.

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