Google GBuy specifics: 'Could be a game-changer'
- GBuy beta will debut June 28 with a “surprising” number of merchants
- One ID, One Password: a user signed up with Google…will be able to engage in all kinds of activity on the Web (including shop and pay) without having to log in to different services from different vendors
- Free for Now, Will Charge Later: may underwrite the costs of this program for the beta testers…will not remain free forever…rates may be slightly below PayPal, Visa and MasterCard
- GBuy Logo: intentions to include this feature and it may even incorporate additional language…”trusted GBuy merchant”
The most intriguing part of Rohan’s analysis is his suggestion that direct commission fees that Google may charge for processing payment transactions may not be Google’s ultimate profit end-game. Google may use a system such as GBuy to contextually mine user data to better deliver user-targeted advertiser paid “Sponsored Links”, much like it does with its GMail ad system:
Higher Level of Targeting: transactions will allow it to capture the purchasing pattern of GBuy users. It will be able to serve up ads that target specifically toward each consumer’s purchasing tastes.
Rohan also speculates that Google will use its user purchasing funnel analytics not only to drive higher user click-throughs for its overall ad sales, but will also use the data to uncover the higher converting merchant categories, and may then in turn target the category advertisers for more money via higher AdWords and AdSense bids, higher GBuy commissions...:
The GBuy merchant will be opening up its transaction and customer data to Google..to figure out the true value of an advertising lead and may attempt to charge more at some point in the future…
Who will win in the projected GBuy system: Google users, Google advertisers, or Google?