AT&T and its competitors rake in $7 billion a year from directory assistance, charging 50 cents to $1.75 per call. Google, on the other hand, offers its automated GOOG-411 service gratis. How can the search juggernaut afford not to charge?
A) Get free data. Each time callers to GOOG-411 request a phone number, they're giving Google valuable information. Each call provides voice data representing unique variations in accent, phrasing, and business names that Google uses to improve its service. Estimated market value of that data since the service launched last spring: $14 million. B) Invest in the next big thing. Still, the value of that information hardly compares with potential earnings if Google were to charge $1 per call. Why give away the store? Honcho Peter Norvig has said that GOOG-411 is a test bed for a voice-driven search engine for mobile phones. If it serves ads to those phones, Google's share of that market could be measured in billions.
Google sacrifices a potential revenue of 144 Million by 2012 for the potential earnings from the north american and european mobile search market (estimated to be 2.5 Billion)
From Wired
1 comment:
When it comes to free 411, you have MANY choices - including one from AT&T, which has been around for well over a year! Try out all of these - you may find yourself adding more numbers to your phone directory! I like the ones with operator back-up (for the times when the automation doesn't work for me) and the ones that also offer lookup for PEOPLE in addition to businesses and government numbers.
1-800-YellowPages (800-935-5697)
1-800-411-SAVE (800-411-7283)
1-800-555-Tell (800-555-8355)
1-800-Call-411 (800-225-5411)
1-800-Free-411 (800-373-3411)
1-800-Goog-411 (800-466-4411)
1-800-Info-Fast (800-463-6327)
1-800-The-Info (800-843-4636)
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