First, breathe. Google Search isn’t going away just because Alphabet is replacing Google in public trading, assures Google Co-founder Larry Page.
“We are excited about … making Google even better through greater focus,” he writes in Monday’s official Google blog post announcing the new company, Alphabet.
In the post titled “G is for Google,” Page says he’s now Alphabet CEO and Sundar Pichai will hold the same title at Google, which is now a wholly owned subsidiary of Alphabet.
Google will continue to run the Internet businesses that make sense as part of that subsidiary, while other entities will break off — such as “Calico (focused on longevity),” Page writes.
What the change for this search giant means for digital marketers:
- “Search … is secure and stable at the present,” writes Anna Shen on Tuesday for 3Q Digital. “And there shouldn’t be a sudden shift in the market dynamic. However, it is possible that perhaps sometime in the future, Alphabet could shift the focus away from search engines and [devote] more dollars to creating new products.”
- Considering Page writes that each subsidiary will have its own leadership, Shen and Felix Salmon on Seeking Alpha hypothesize that search will actually get more attention than it’s getting now. “Google … is already a hydra-headed beast, encompassing not only search but also other multi-billion-dollar businesses including Maps, Chrome, YouTube and (oh, yeah) the world's biggest mobile operating system, Android,” Salmon writes on Tuesday in his “26 Reasons Google Created Alphabet” post. “Keeping all those moving parts working in some vague sync is very, very hard work, and it's not clear that Larry Page is the person to do it. Giving Pichai the job could mean that Google becomes more successful than it would otherwise have been.”
- Despite what Salmon writes, Page says YouTube and machine-learning tools, including Google Photos and Google Now, will stay within Google. (Although Page does mention: “Google also has some services that are run with their own identity, like YouTube. Susan [Wojcicki] is doing a great job as CEO, running a strong brand and driving incredible growth.”)
- “This is no reason to fear for your job,” Shen says. “After all, search has been identified as a core focus for Google and is the naming inspiration for Alphabet. It is a reaffirmation of sorts, of the importance of search over side-projects, such as the Google self-driving car.” She also mentions indicators of confidence from the stock market uptick of 4 percent in the hour following Page’s post being published. As of Tuesday afternoon, Yahoo Finance shows Google stock up more than 4 percent.
What will marketers do in the wake of the Alphabet announcement?
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