Tuesday, March 15, 2011

Making Money Online Easy


Google has gotten a lot of attention for the launch of One Pass, the all-in-one subscription plan for publishers that the search giant revealed earlier today — primarily because it made for a nice counterpoint to Apple’s new in-app subscription system, which launched on Tuesday. While Apple’s offering is closed and takes a big chunk of the revenue from publishers, Google’s takes a much smaller cut — and because it’s based on the web and not on controlling access to a walled garden, Google’s system is much more open. That said, however, it’s not at all clear that publishers will get anywhere by signing up for it, open or not.


The main benefits of Google’s plan are fairly obvious: It doesn’t force publishers to provide the company with preferential access to their customers, the way Apple does by requiring in-app purchasing for all subscription services, and Google is taking only 10 percent of the revenue any publishers bring in via its payment system, while Apple takes 30 percent of all subscription fees. On top of that, as MG Siegler notes, the One Pass system provides publishers with access to information about those who sign up — names, email addresses, zip codes and so on — which is crucial data that content companies use to market their services to advertisers. Apple turns this option off by default, and users have to opt in.


That’s the good news. The bad news? Google’s One Pass is pretty much just a warmed-over content paywall. All it does is collect the money for publishers who want to put up a toll-booth around their content. In fact, the thing it resembles the most — as Josh Benton of the Nieman Journalism Lab notes — is the Journalism Online Press+ system that entrepreneur Steven Brill and former Wall Street Journal executive Gordon Crovitz have been peddling to newspapers and magazines for the past year or more, without much success.


Like that system, Google’s service is essentially designed to handle the payment processing for multiple subscription sites, so users can theoretically sign up for dozens without worrying about being nickel-and-dimed by each one. There’s just one problem: There’s no sign that users have any interest in doing this — or at least, not in large enough numbers to make it work for anyone other than perhaps The Economist and the Wall Street Journal. Those who have put up new paywalls, including The Times of London, have seen the vast majority of their readers disappear into the wind.


One of the reasons users of Apple products like the iPhone and the iPad seem a lot more willing to pay for things like apps is because the experience is so much better and paying is so easy. Despite that, magazine and newspaper publishers have have had little success so far in getting people to pay for their apps. Why would it be any easier with Google’s One Pass? If anything, it’s likely to be even harder, because it’s based on the open web — and users are likely to notice that free content is all around them, while iPhone and iPad apps do a fairly good job of disguising that fact.


So congratulations to Google for making some hay with its launch, but any publisher who sees One Pass as some kind of golden ticket is dreaming in Technicolor.


Related GigaOM Pro content (sub req’d):



  • How Media Companies Can Compete Online

  • Demand Media — Search Spam or the Future of Content?

  • Google Needs to Fix Its Spam Problem Even If It Hurts


Post and thumbnail courtesy of Flickr user David Kozlowski








Today’s announcement of the $61.5m acquisition of BeatThatQuote by Google will be viewed with interest by Google's search rivals and by other comparison-based businesses.


Assuming Google uses this acquisition to start integrating comparative data into its search results, this acquisition could have far-reaching implications:


1) Improving Search Results

The spread of advanced SEO tactics has allowed high rankings to be achieved by sites with low relevance content. This has led to poorer search result quality and public criticism of Google. Whilst Google must downgrade low quality content farms, it must make sure that authoritative price comparison content ranks highly as this is extremely popular with the modern consumer.


Whilst top comparison sites do perform well on Google search currently, by integrating comparative data into its search results, Google will make it even more prominent, distinct and easy to access.


2) Google Becoming an Active Intermediary

Originally, Google acted as an independent indexer of all online content. This is no longer the case. As an example, when I search for ‘restaurants in Miami’, my Google results page is dominated by Google Places data.


As the war between Facebook and Google for user attention and online business dollars grows, Google’s is shedding its independence and becoming an active intermediary between the user and Internet content. The integration of comparison data generated by Google’s own tools will be a further step in this direction.


3) Starving the Middle Man

Traditionally, the high volume of strong, independent content produced by comparison sites has allowed them to rank higher for natural search on Google than the operators themselves. In order to get a share of search-generated business, operators have used Pay Per Click adverts on Google and they have paid commissions to the high-ranking comparison sites.


Once Google integrates comparative data into its search results, payments from operators to Google will continue and increase, but payments to independent comparison sites will come under severe pressure.

Continued on the next page



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