Google looks locally (Michael Sainsbury, APRIL 21, 2006)

location based services

ONLINE search powerhouse Google has signalled it will enter the $2-billion-a-year Australian local-search market and is in talks with local players about an alliance.

Google Australia country manager Kate Vale told The Australian that the company needed a partner for local databases before it could launch its service. "We hope to be able to announce something soon," she said.
The new service would see Google go head to head with Microsoft, Telstra and The Australian's publisher News Corporation.

Google's other big rival, Yahoo, has a local venture with the Seven Network but has not announced any local-search plans in Australia.

Last month, Australia's leading website, ninemsn, launched a local version of the search service of its part-owner, Microsoft.

ADVERTISEMENT







Ms Vale said the company was continuing its search for a Southeast Asian director, who would cover Australia. The position might be based in Australia, "depending where we find the talent", she said.

Google had fewer than 30 staff in Australia, Ms Vale said.

Most of these were engaged in selling advertising to local businesses, but there was also a small research and development team involved in mapping.

Macquarie Equities this week highlighted the threat posed by emerging online directory services to Telstra's near-monopoly print directories business, Sensis, which has revenues of $1.5 billion a year.

Macquarie has cut its revenue growth outlook for Sensis from 7.1 per cent to 4.4 per cent over the next four years.

Yesterday, Google stitched up a revenue-sharing deal with emerging wireless internet company Unwired, its second major deal with an internet service provider after last year's deal with Primus.

Google search would be featured, and the company might provide other Google services, such as gmail, in future, Unwired chief executive David Spence told The Australian. The deal is designed to provide additional revenues for both parties through Google's AdWords service.

Google has been a latecomer to local search in Australia.

Ninemsn recently launched the local version of MSN's MyLocal service and News Corporation released truelocal.com.au earlier this year.

Mr Spence said internet search engines such as Google would become even more sophisticated as the trend towards personal mobile broadband devices continued.

"Internet users will increasingly demand services relevant to their specific location, whether it's Sydney, Melbourne, or in the future, anywhere around the world, and we intend to be able to cater for this demand," said Daniel Alegre, Google's director of worldwide strategic business development.

"Google's search and targeted advertising is designed to improve the user experience on Unwired, while providing the company with an additional revenue opportunity.".

The Australian