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Google Cars

Discussion in 'SEO & SEM Discussions' started by chris, Dec 5, 2012.

  1. chris

    chris Administrator

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    auDA Member:
    Yes
    Not sure if everyone has seen this...

    https://www.google.com/cars/

    Run a few searches, especially for something that's not listed. You're given the option to "get quotes".

    Cheers,
    Chris
     
  2. helloworld

    helloworld Membership: VIP

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    "We are compensated by some of these dealers"

    So not all of them, Google ?

    Is this PPC?
     
  3. Chris.C

    Chris.C Membership: VIP

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    Makes me want to short CarSales.com stock...
     
  4. snoopy

    snoopy Membership: VIP

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    My first thought was about them, carsales.com.au killer. Will be interesting to see if it takes off, like most of their other Google projects though gut feeling is "no".
     
  5. findtim

    findtim Membership: VIP

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    why would they bother? carsales is far more advanced, just go BUY carsales.com.au as they have enough money

    while ya at it, go buy realestate.com.au as well.

    tim
     
  6. Billy01

    Billy01 Membership: Community

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    If Google had a project take off ?????????????

    I'd walk naked, backwards to Perth, with no shoes.
     
  7. Chris.C

    Chris.C Membership: VIP

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    Because carsales is selling at 24 times last years earnings...

    Why not just build the platform and steal their entire market in the space of 2 or 3 years... it costs you less.

    Not to mention that you'd have to buy out every carsales.com.au equivalent around the world.

    Google is better off building a good platform and then just using their leverage to make it happen.

    I think it will depend on if Google decides to somehow integrate their "freemium" feature where they let users list for free try some cross subsidizing via advertising.

    ie, it could be interesting if they allow private sellers to list for free and charge dealers per lead. Or allow people to list used cars for sale, but charge manufacturers to promote new cars.
     
  8. Lorenzo

    Lorenzo Membership: VIP

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    How hard can be for Google to outrank on Google a competitor if they want to?

    :rolleyes:
     
  9. snoopy

    snoopy Membership: VIP

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    I think the that is the major part of the problem, say they spent $100billion buying out all the major car sites, they've then got one big mess in terms of something global. Actually Google does not have the money to do this anyway. They would have to raise a massive amount of capital just to do it for one industry. Shareholders would probably desert them.

    They are better off just doing the mediocre, mildly popular add on services that they are doing.
     
  10. Lorenzo

    Lorenzo Membership: VIP

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    Indeed...the next step for Google is selling everything so they would just delete all other businesses...that's it.

    They own the internet basically.

    GAME OVER
     
  11. Shane

    Shane Membership: VIP

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    I remember when people in the real estate industry were paranoid that Google real estate search was going to hurt them (and especially realestate.com.au), but that didn't happen...

    http://www.smartcompany.com.au/info...tate-search-on-maps-due-to-poor-response.html

    And I don't think carsales.com.au has much to worry about either.

    Zero chance that Google could achieve this in a time frame even close to that.
     
  12. Lorenzo

    Lorenzo Membership: VIP

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  13. snoopy

    snoopy Membership: VIP

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    Yeah remember that one, I haven't heard a thing about it since.
     
  14. Chris.C

    Chris.C Membership: VIP

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    In the long run the middle man always gets proverbialed.

    It won't happen overnight but it makes sense for many markets to consolidate and cut out many middle.

    I recently had to buy a car I have long wondered by car manufacturers don't sell new cars direct to consumers online. What's the point of going through a dealer?

    Then I found out Subaru actually started doing exactly that this year.

    It's 5 years overdue, and the process is unpleasant and still has a lot to be desired, but the writing is on the wall... competition will take care of the rest.

    True.

    That said, from my perspective if Google WANTS to take over an industry they can definitely MAKE it happen. It's just a case of desire and I suspect in many cases they feel doing so would take them away from their core competency, and they have bigger fish to fry in the meantime so they put these projects on the back burner, but ultimately the profit motive will probably bring them back to these projects overtime.

    3 Years in "internet years" is like 15 years in "traditional business years"...

    How long did it take for Facebook to supersede MySpace? How long did it take for YouTube to go mainstream? How long did it take Google to take over Yahoo and AltaVista? Hell how long did it take CarSales.com.au to surpass the Trading Post...?

    Never underestimate how quickly the internet can unleash the principle of creative destruction on an industry.
     
  15. snoopy

    snoopy Membership: VIP

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    I think those cars are still sold "through" dealers. It don't think Subaru is just sending a car to someone's house. Not sure how it will play out but there probably needs to be dealer involvement somewhere, ie who services the car, where do you go for a warranty claim.

    The other thing is a lot of dealers are owned by the factory, I don't know the % but a lot are selling directly and probably have been for decades.

    Most high value transactions are "unpleasant" to the average person though. Realestate, cars, whatever. The sellers don't want to give up margin and the buyers mostly won't pay sticker price, so you've got two bulls in a pen.


    I think Google have taken over one worthwhile industry, paid search.

    How long did it take for Google to supersede Facebook, or Apple or anyone else other than Yahoo?
     
  16. Shane

    Shane Membership: VIP

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    Yes
    Whether it's the auto industry or anything else, the middle man is often an important part of the process. Sometimes they add value, sometimes they don't. Those who do add value are pretty safe in my opinion.

    A friend of mine runs a car brokerage business with a few offices around Australia. They sit in the middle between the buyers and the dealers, and you could say they are more at risk than anyone in your middle man theory.

    But their business is growing, simply because they add a lot of value for their clients that cannot be replicated by the dealers or manufacturers, or dare I say it, even a website.

    The Subaru example you gave is a special case really. It's only the BRZ you can buy online, and that only works because there was so much hype about the car. They'd struggle to sell more than a handful of Imprezas or Libertys each month even if they tried.

    I know you like to quote a lot of capitalism theory, and yes there are plenty of examples where middle men have or will disappear, but the reality is that humans are humans and if they see value in a particular service they will use it.
     
  17. acheeva

    acheeva Membership: VIP

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    Actual value add will always stand the test of time
     
  18. Chris.C

    Chris.C Membership: VIP

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    That depends.

    Those that add value aren't "safe" they have probably just bought themselves time.

    And just because you add value doesn't mean that your "value adding" service can't integrated into another party's production process.

    Innovation and increasing productivity is always required to stay ahead of the pack, what is considered a "value add" today, is just standard tomorrow.

    So you don't think they are at risk?

    I wouldn't be so sure, because just a couple of months ago I made the recommendation to my own father, who sells capital equipment, that he does enough volume of sales on outsourced finance products to bring his financing inhouse rather than outsourcing because it will increase his margins/profitability.

    And whilst he might not do it tomorrow, he will be forced to do it over the longer term in order to remain competitive.

    Why can't it be replicated. Capital is freely available to everyone. If anything it is SUPER easy to replicate for larger dealers because of the low overheads.

    That's why more car manufacturers are developing their own finance companies and offering their own finance products.

    Yes only BRZ was offered, but I fail to see what difference it makes what cars are sold.

    If cars are sold direct online rather than via physical dealerships it will potentially mean manufacturers can reduce overheads by shutting down dealerships and staffing costs which translates into lower car prices.

    I don't know what your point is here...

    Humans will always look to maximise value, the reason people sell their car on CarSales rather than via the Trading Post is because it offers the same or more value but is more efficient and lower cost.

    People list their properties for sale on RealEstate.com.au because it offers more value and is more efficient and lower cost.

    Most people buy shares via online brokers these days than via real world brokers, because it offers the same "value" but is more efficient and lower cost.

    People choose to use Google over the Yellow Pages because it offers more value and is more efficient and lower cost.

    This is how capitalism works.

    And unfortuantely Google is VERY good at entering markets and creating products or services that are more efficient and lower/no cost because they are able to generate more revenues that other party's are unable to due to their advertising network.

    I'm not saying that anything will change overnight, all I'm saying is that inevitably customers/money will flow to those entities that offer the most value in the most efficient and low cost way.