Google CEO Eric Schmidt emphasized “the role of partnerships” in Google’s long-term growth strategy during the company’s Q2 2006 Earnings Conference Call this week:
We're learning how to operate, learning how to build a stronger ecosystem. The strength of that ecosystem is central to our strategy, because we can't do it alone. We benefit by having the reach, impact, financials, and frankly, help from the partnerships…in content, in distribution and in access, all of which are announced with many, many more coming.
Sergey Brin, Google Co-Founder and President of Technology, discussed how Google aims to drive Google Checkout merchant adoption by partnering with e-commerce service providers:
we were very happy to introduce Google Checkout this quarter. We have spent a lot of time thinking about how we can help our users more easily shop online, while helping our advertisers generate more sales…benefiting merchants by delivering higher click-throughs, conversions, and ROI. We believe these benefits will increase advertiser spending and bring more advertisers to Google…
Eric spoke a lot about partnerships, and they will be very important to the success of Google Checkout…. developed partnerships with e-commerce service providers like GSI Commerce, Monster Commerce, and Channel Advisor, to help merchants integrate Google Checkout into their website.
A search for “google checkout” at Google presents e-commerce service provider “Sponsored Links” promoting merchant integration of Google Checkout.
The “Sponsored Link” for Mercantec says:
Get Started w/ G Checkout
Request a free, no risk quote on GC
custom integration with your site.
The landing page for the “Sponsored Link” of Volusion is:
Google’s goal of driving merchant adoption of Google Checkout is a key part of its long-term strategy to further grow and further monetize its advertising business.
Schmidt said of Google Checkout during the company’s conference call:
we've only had the product out for a couple of weeks, so it's very early to comment on it… We think that that ultimately will translate into higher value for the advertiser, which should ultimately be reflected in our overall revenue.
Salar Kamangar, Google Vice President, Product Management said during the call:
everything about the product design, as well as the pricing model, is oriented towards helping users not just find the merchants and the ads, but also then complete the transaction. So it's for this reason that we have set up some incentives that have to do with AdWords spending.
Our goal is long-term to increase the amount of searches and commercial searches on Google, increase the click-through rates to our advertisers, and increase the conversion rates that these customers get because of increased convenience. So we're really thinking about the business as a way of adding to our overall ad network.