Tuesday, July 25, 2006

It’s Consistency vs. ‘Wow’

Original article - NYTimes

Correction Appended
When Google introduced its mapping service last year, it did something that made its competitors look antiquated. Users could click on a map and drag it to see an adjacent area, a much faster approach than those offered by rival mapping services.

But today, Google Maps still does not offer some of the pedestrian conveniences of Yahoo Maps and MapQuest from AOL. For example, while it can remember your favorite starting point, it cannot store multiple addresses.

Alan Eustace, a senior vice president for engineering and research at Google, said in an interview last week that the company had made a conscious choice to play down copycat features: “We are trying to come up with something that is new and different, that makes people say ‘Wow.’ ”

Do Internet users prefer services that are consistent and predictable, like those offered by Yahoo, or are they more interested in Google’s wow factor?
These two approaches define a pivotal front in the battle for online loyalty between the major players in the Internet search business.

Both companies see e-mail and other services as ways to display more advertising — and, even more important, as a way to keep their brands in front of users so they stick around for more searches.

“The battle is about one thing: getting that search box in front of as many people in as many places as possible,” said Jim Lanzone, the chief executive of Ask.com, the search service owned by IAC/InterActiveCorp. Yahoo is on the defensive in the broader fight, where Web search advertising is the biggest prize.

Google is continuing to extend its lead in users and revenue from Web search, while Yahoo’s attempt to compete is foundering. Last week, Yahoo reported weak search revenue and said it would delay a critical search advertising system, sending its shares down 22 percent to a two-year low.

With AOL and MSN from Microsoft losing share and plagued by strategic confusion, Yahoo is in a position to further solidify its lead as the Web’s most popular full-service Internet portal, so any incursions by Google into areas like e-mail and maps are a threat.

Yahoo is trying to fend off its rival by emphasizing the wide range and consistent approach of its Swiss army knife of services. And since 200 million of its users have registered Yahoo accounts, it can use information about them, like their addresses and contact information, to save them time and personalize their experience.

“Our philosophy is that being part of the Yahoo network is a huge advantage and a huge competitive differentiator,” said Ash Patel, Yahoo’s chief product officer. “When we build a product that takes advantage of the Yahoo network, it doesn’t feel like an orphan.”
Google has tied some products together — for example, combining its instant messaging and e-mail services on the same Web page. But those links are often created after a product is introduced.

“There is a tradeoff between integration and speed,” Mr. Eustace said. “We are living and dying by being an innovative, fast-moving company.”

Sometimes this penchant for speed and innovation can cause Google to zoom past the basics. When asked about the lack of an address book in Google Maps in an interview last fall, Marissa Mayer, Google’s vice president for search products and user experience, said it was a gap in the product. She said it was much easier to get the company’s engineers to spend time developing pioneering new technology than a much more prosaic address storage system.

There are risks in each approach. Google tends to introduce a lot of new products and then watch to see what works. This has the potential to alienate users if there are too many half-baked ideas or false starts. At the same time, Yahoo risks being seen as irrelevant if it tries to put so many features into each product that it is always months late to market with any good idea.

“Yahoo has lost its appetite for experimentation,” said Toni Schneider, a former product development executive at Yahoo who is now chief executive of Automattic, a blogging software company. “They used to be a lot more like Google, where someone would come up with a cool idea and run with it.”

While Yahoo’s processes have become too bureaucratic, it is still attracting an audience, Mr. Schneider said. “Google’s products may be more innovative, but at the end of the day, Yahoo is pretty good at nailing what the user really wants.”

Read more - http://www.nytimes.com/2006/07/24/technology/24yahoo.html?pagewanted=2

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