Product Search

Another revenue channel for Google: Product Search?

July 12, 2010: 2:37 PM ET

An analyst thinks that Google's prominence in search will allow it to climb up the value chain in other highly profitable areas.

Analysts want to see what the next big thing is going to be from Google.  Sure Google does a brisk business with advertising against search, but what other area of their business has real revenue growth potential?

When consumers buy through a Google search, Google stands to make a percentage.

Google's (GOOG) ITA acquisition has Bank of America/Merrill Lynch's Justin Post thinking that Google may be looking at product search as on such area:

These changes are transforming Google into a more competitive, closer-to-the-transaction eCommerce platform, with the potential benefit of: 1) bettering traffic share gains and 2) improving conversion rates (up to 30% in some formats), leading to higher CPCs.

How much could Google make?  Post thinks that squeezing eCommerce intermediaries out of their referral fees could net Google as much as $1-2 billion annually over the next three years out of the rapidly expanding $10 billion global market.

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