Google upsetting big customers?

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Google upsetting big customers?

Post  corrupt666 on Mon Jun 09, 2008 12:47 pm

Google may have a huge lead in the search market, dwarfing by far also YAHOO! and Microsoft in the online ad arena. But google seems to have more than disappointed some of its largest customers. These companies lashed out at google for a tactic used by certain smaller companies, known as 'piggybacking'. What these smaller advertisers do is use major players' brand names, slogans or other trademarked words in the text of search ads to lure web surfers to their own sites.

Tensions over piggybacking have been simmering for a couple of years. Companies such as Marriott International Inc., InterContinental Hotels Group PLC, AMR Corp.'s American Airlines and Northwest Airlines Corp. say the use of their names and slogans in the text of other companies' search ads confuses potential customers and increases their cost of doing business. They are particularly upset with Google, which is the dominant player in the search business. It controlled 71.2 per cent of the search market last year.

While Google and other search engines have policies against this manoeuvre, some marketers say the practice often goes unchecked. The brick-and-mortar world has long-established laws in this area, but the legal situation is less clear for the internet and has only recently started to be tested in courts.

Some advertisers are demanding that Google and other search engines create an automatic system that will only allow advertisers to use other companies' names and slogans in the text of search ads if they have permission.But google says it is trying to balance advertisers and trademark owners and user interests.

I think Google will have to do more than just that, because from where I see it, the situation hasnt changed at all, and if it doesn't come up with a practical solution, either it is going to lose these big customers, or lose billions in lawsuits. Hey wait, what if both??!!


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