One the world’s most revered brands, you’d think Google would employ best practice in setting up a local office. Not so. The search giant’s presence here is marked by a lack of local development, no commitment to equity and a company structure that sees revenues originated in this market shipped offshore.
In this opinion:
Google SA could do with diplomacy
No commitment to diversity
From underdog to overlord
The perceptual tipping point
Can we trust Google to be good?
One of the top gainers in Interbrand’s annual ranking of The Best Global Brands, Google jumped from a ranking of 20 in 2007 to 10th spot in 2008. However Google’s brand, reputation and founding principles are being tested in South Africa where the brand has a fraught relationship with local search marketing companies. The whole Google accreditation saga clearly showed this market could do with a little less sales aggression and a lot more communication, advocacy and diplomacy.
Poor market communication
Google SA’s agency certification may weed out rot, but it clearly hasn’t been well thought through and the communication of this can only be described as a shambles. In speaking to Google SA’s country manager, Stafford Masie, I asked him why the announcement wasn’t better communicated. His response was typical of an arrogant organisation verging on monopoly that bristles to criticism. He said he would communicate or not, as he sees fit.
While disruptive technologies and cutting out the middle man is to be lauded in general, what is worrying is Google’s “go direct” approach in a region where search marketing is in its infancy. The online marketing sector in general and search marketing in particular has not yet benefited from diversity, nor has there been adequate equity or skills transfer in this industry. Search marketing has the potential of becoming a huge, global industry for South Africa that can attract enormous revenues that contribute solidly to this economy.
If blame must be shouldered, then one would have to thank the government’s protectionism of Telkom which has denied internet access to most South Africans and realised a country that even today is largely broadband deprived. Despite a more deregulated environment access is not pervasive, while upstarts like Dabba on a quest to network impoverished townships with a collaborative commerce initiative are threatened by Icasa and the morass of stifling telecommunications law.
Missing the brand-hero boat
In a better world one of the first things Google could have done when entering this market would be to claim the high ground as a hero brand. To challenge bandwidth deprivation or at least to level the emarketing playing fields by establishing a search marketing academy for PDIs. Or invigorate the sector by creating a certification that is free, fair and respectful of the DTI’s equity codes.
Instead Google has been blind to industry issues. This as revenues made by search agencies in this region bypass Google SA, going off shore to Google Ireland.
Speaking to Masie while doing research for my story The bumbling behemoth it was evident Google has no plans in place for the transfer of skills to PDIs, the seeding of PDI agencies nor any equity or development programmes.
Like a Microsoft, IBM or HP, Google is a global giant. As such, every move it makes will be scrutinised in every market it operates in. Particularly as it is no longer the much loved geeky underdog. Google is now the overlord. A behemoth edging towards monopoly that will naturally attract watchdogs.
Then there is the issue of a perceptual tipping point. As Google grapples with privacy issues, unbridled growth and unchecked power, it’s founding “do no evil” mantra is being strenuously tested.
Do no evil?
And Google struggles in full public view because the behemoth is the purveyor of transparency and information freedoms. Each time Google stumbles like it did by capitulating to China’s demands to self-censor; or when the company’s products and services are used to do harm as seen with media reports that Google Earth was used by terrorists in the Mumbai Attacks; business, public and investor sentiment will be tested.
When Google errs the world will ask again, and again: “Can we trust Google to be good?” The tipping point will be reached when enough opinion “influencers” no longer believe that Google can be trusted to do the right thing.
A case in point when doing the Google story was an allegation of media manipulation made by a search marketing expert who did not want to be named. This source said Masie assembled a cabal of local journalists who received privileged information from Google on the proviso that they were favourable toward Google in the media. The source said that ITWeb journalist Paul Vecchiatto had been invited to participate, but that Vecchiatto was disgusted with the idea and declined.
Allegations of media manipulation
In speaking to Masie he rubbished the allegation, sounding affronted that I had even mentioned it. Masie’s PR representative Craig Rodney of Emerging Media said that he’d resign the Google account on this spot if this claim was corroborated, because it would undermine Emerging Media’s credibility.
I spoke to Vecchiatto, who said that Masie had indeed invited him to join a group of 12 to 15 journalists who would meet Masie every quarter. Vecchiatto added that information given at these sessions would be “off the record”.
“Basically it’s like us doing Google’s PR. That’s the implication of having a select group of journalists who would meet ‘off the record’. The implication is that the journalists become an unofficial mouthpiece for Google, which is ridiculous because as an international company that is listed on Nasddaq everything Google does should be open and transparent. Google is a market in their own right, such as the JSE, and has to be very fair about what it does and the way it disseminates information.”
At the time of the conversation Vecchiatto says Masie told him: “This is a strategy Google has used in other geographies and has worked very well for us.”
The conversation between Masie and Vecchiatto took place in front of Cape based freelance journalist, Morgan Behr. I phoned Behr who corroborated Vecchiatto’s statement, saying it was both true and accurate. Pundits in the ICT industry will remember that as country manager for Novell, Masie was involved in the Microsoft/Novell deal of 2006 which was met with widespread controversy and efforts to boycott Novell.
Riding roughshod over emerging markets
With emerging markets showing double digit growth and Google’s share price taking a beating back home, Google would be wise to reconsider the way it operates in emerging markets.
As a South African with vested interests in this economy, I hope for the sake of diversity and the potential for a huge global facing industry, that Google will change the way it does business in our country.
Read “Bumbling behemoth” — Mandy de Waal’s story on how Google’s presence in this market is marked by controversy, confusion an a lack of commitment to diversity, equity or skills transfer.
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15 Responses to “Googleocracy”
Unfortunately Google are in this incredible sweet spot where very little than any of us say or do actually bites them. About the only thing I can bring myself to do is refuse to use Chrome (easy). Not doing my first-line research via Google would just be kicking myself in the pants - although I know how much information they probably get hold of on me and my work and I’d rather they didn’t. And gmail is very attractive as a free service…
Truthfully though, any company where one of the best things they can think of to say about themselves is that they ‘do no evil’ - well, it’s got to be suspect, hasn’t it? It’s like your daughter’s boyfriend coming round to the house and, unasked, loudly telling you that he isn’t a sex pest….
These are great articles though - well done on them. I’ll have to give this second one a proper read later on.
Maybe if the local search marketing companies delivered any type of service that could be compared to google, this article would have relevance.
Face it - the locals are technically incompetent.
The next question is what the writer of this article (that refers to herself in the third person and also refers readers her previous article TWICE) have to loose with some competition in this industry?
Kit - Thanks for your comments, and the “sex pest” comment. It brought a wry smile to my face. Google’s ‘do no harm’ mantra “primum non nocere” (first do no harm) which is taught in medical school and used in emergency services. It is used so that students can first consider any harm that their intervention could do. I don’t believe that it holds much merit as a business mantra.
@GS van Zyl - Peter Stewart who is that CEO of ClickThinking was flown by Microsoft to Redmond to show Microsoft how to do search marketing. I’d hardly call that technical incompetence. What do I have to lose if the search marketing industry became “more competitive” with Google going direct. Well your argument is logically flawed - you see if Google asserts its dominance in this region a local search marketing industry that could bring in hundreds of millions of rands (which are taxed and could help uplift our country) would be gone. The industry would die before it gets off its feet. Which would be sad given it could be a huge and lucrative off shore industry for SA. Then as a journalist it is my job to try and uncover corruption, greed and bad business practice and bring it into the public eye which is what I hope I am doing here. Lastly the interest that one should question is the relationship between Google and the media. Online media will come to rely more and more heavily on Google for revenues and their livelihood - how will that affect their journalistic integrity?
@Walter Pike: Thanks for your comments. The issues regarding Google SA are many and complex. Not all of them are covered by this piece.
The problem is how are you going to convince me, my friends, my mom and most of the people in South Africa that it will be beneficial for them not to use Google services? They search engine are by far and away the best, and they their free services (which I know is not really free) like gmail, google talk and Google Earth is excellent.
Local is only lekker if it is just as good or better.
The company I work for has had good feedback from Google South Africa. They are much more helpful than Google USA. Google may only be helping established SEM companies at the moment.
The Search marketing field is growing in SA, we can see this by amount of new companies advertising online.
With regards to the money going to Google Ireland - that is their base of operations for finances for countries outside the US.
I hope Google doesn’t get roped up in equity, BEE etc.
Thank you for the excellent article Mandy and thank you for saying what other people are scared to say. Much more can be uncovered if you know where to search for information. Google South Africa is becoming a disgrace.
Mandy - do you know whether Craig Rodney has resigned from the Google account since the news of attempted media manipulation have been corroborated?
I fully agree with the debate that we can’t promote other search engines until we have a decent alternative to Google - which we don’t. However, if the monopolistic, dominant market leader is engaging in anti-competitive activities, then how can we expect a decent competitor to emerge?
Google offers a great product - they just need to be regulated since they have demonstrated the inability to effectively self-regule. Until this happens there will be no good alternatives sprouting up anytime soon…
how much did Sean Riley pay you to publish this article? If you’re looking for questionable ethics then you should look to the guy who paid you off to do this article - that’s evil right there - ripping off clients then crying to the media.
What you’ve got to realise is that there is mention of BPF as well (in your behemoth article) - do any of you agencies out there really know what BPF WAS? I say was - as in - it’s not going to exist anymore - did you know that?
Mandy - as for saying the CEO of Clickthinking was sent to Redmond - Microsoft SEM is far different to Google SEM - so being asked to go overseas hardly makes this person an expert.
The main point here is this: Google encountered the same problems in the UK - agencies and the media running them down and questioning their practices - then they became enlightened and they ate their ties. Maybe the community here should learn quickly before all bridges are burnt.
or when the company’s products and services are ‘used to do harm as seen with media reports that Google Earth was used by terrorists in the Mumbai Attacks’
erm, ok then if I use scotch tape when making a bomb dopes that make scotch tape bad?
Im no fan of Google but that’s a rather sensationalist statement
GS van Zyl - Google has amazing products, I am not for a minute saying you shouldn’t use them. I use Google products myself. What I am saying is that they could do business in a much better way in South Africa, and I am hoping to bring that to public opinion.
Jean - It is often PR or spin doctoring practice to make positive remarks when brands have a scathing article. By so doing PR agents and spin doctors with questionable ethics hope to affect the way editorial is read, and manipulate public opinion. Your comment may be genuine, but that’s hard to ascertain given that it is anonymous and the company your work for and you say Google SA has given good service to, has not been named.
John & Feisty Female - Thank you. Your comments are appreciated.
Sean Riley - It is not my concern whether or not Craig Rodney has resigned the account. All I need to do is put things in the public eye, which I believe I have done. Then Google is not a monopoly Sean. A monopoly owns 100% of the market which Google clearly does not. Then the notion of regulation is fraught - how do you regulate and on what grounds do you regulate? Regulation is a perversion of the free market system which is best avoided.
“Nice try Sean Riley” - When you start doing investigative journalism you quickly realise that people will try and undermine you with cheap shots and vituperative vitriol. It comes with the territory so this comment holds zero weight for me. Interesting to note too that it is a well known propaganda tool to try and undermine the credibility of journalists (and other lobbyists) who write or broadcast damning stories on big brands and businesses. What this makes me wonder is why someone would go to all this trouble to try and discredit me. You’re not working for Google SA by any chance, are you?
wendy & Jonathan - What I am looking at here is a perceptual tipping point. If there are enough negative perceptual triggers for Google, public opinion would rise against them. This often happens when companies move from underdog to overlord, or from start up to monolith. The Google Earth statement was an example of the many different negative perceptual connections that could form a swell, which could reach a tipping point.
Mandy, I’ve been following these threads for some time now. I am not an agency but rather a client of Google (i.e. an advertiser) who got rid of the agency we were using because of the smoke and mirror tactics they imposed with this supposedly “complex” Google Adwords system. (FYI: we met with Stafford and his Google South Africa team recently to discuss all this controversy so I have some insight from their side and it’s interesting how different this all looks when you listen to them) Yes, I am also an avid Google follower and fan! I recently broke my silence on Sean Riley’s blog which is almost completely dedicated to attacking Google. IMHO, it is completely ridiculous! It is amazing how emotionally, vigorously and viciously this CEO of Entelligence reacts to all these blogs and articles. I read both your articles on ITWeb and to be honest, it is amazing how much face time you give Sean Riley and how all your comments revolve around his opinions. Considering his complaints commission submission I would say that anything he has to say still has to be proven. My understanding is that the complaints commission found his accusations about Google being anti-competitive in the SA market, without any merit, yet you still post his comments. I agree with your response to his comments on this thread regarding regulating Google, that would be ridiculous! There are so many accusations you also pose and if you are truly an investigative neutral journalist, these articles and postings don’t really reflect it. Here is my input on your blog above : You mention that Masie allegedly wanted to manipulate the media because two people claim he offered them entrance into this off the record closed group (a “cabal of journalists”). Has any of these off the record “cabal” briefings been held? If so, where? when? I am sure there are journalists/writers out there who attended and that would help justify your commentary in this regard? Without proof of any of this, you statements are simply accusing and creating a stir where there is none (and judging by Mr. Riley’s response it results in great drama, drum rolling and no act). I concur with that guys comments about Google Earth and terrorism. LOL! Btw, have you seen how much Google Earth has helped during Katrina Hurricane crisis? Myanmar floods? China earthquake? LA fires? Darfur crisis? Global Warming awareness? Investigate Mandy and provide some neutral perspective(s) please! Could you really not find any single one agency positive about their dealings with Google? Not even one? I am sure if you did investigate you would find an agency in South Africa that works well with them and why. But hey, that would be boring and would kill the overall affect you’ve created. Regarding Google being a “behemoth” in South Africa; Mandy, South Africa has less than 5 million internet users and just about 1 million of 48 million is on broadband according to Arthur Goldstuck at Worldwide Worx. I find the term “behemoth” in the context of SA truly hilarious! Yahoo! recently posted that they have 35% marketshare of people searching in the country. I think if we combined that with Microsoft, Search24 (Naspers) and the other local competitors, you will find that the market is still not Google’s playground and they do not have the sway you’re making us believe. Investigate Mandy, please! You claim that you spoke to Masie and he had no plans for skills transfer to PDI’s. Ok Mandy, but is your story about abuse of market dominance or BEE? If it is about BEE and skills transfer of PDI’s then let us first look at the state of the Advertising BEE charter. The thing is still an immature work in progress so there are no particular guidelines or metrics to steer the industry in the right direction. I just reviewed the DTI website and discovered that a proposed charter was published in August of this year (Media, Advertising and Communication M (MAC) sector charter on Black Economic Charter- 29 August 2008 No 31371) So is it fair to expect Google South Africa to have an extensive BEE strategy within this context? Should we load the BEE burden on their shoulders when the industry itself has no direction in this regard? I guess mixing BEE with Google’s name makes for, again, smoke, drum rolling and no resultant! Investigate and add substance Mandy else it all just looks like throwing blind punches. Also, did Masie’s comments not mention free training and certification for all agencies to be made available next year? Someone commented on your Itweb article about there being two charters related to Google South Africa, the ICT and Advertising charter. An interesting angle to investigate would be whether Google will align with both or one of these, if they ever materialize! Note, when we met the Google SA team recently we asked them to respond more clearly to all of this. What I do find a shambles is their silence on these matters. It clearly not helping their cause. Stafford and team, I am a lonely island out here - you people better set the record straight with all these misconceptions! GDT
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Mandy de Waal is a columnist, writer and journalist. A former broadcast journalist, de Waal is writes for The Daily Maverick, Noseweek, ITWeb, MarkLives, Brandchannel and MarkMagazine. She is the editor of MandyLives!com. She is part of the judging panel of the Discovery Health Journalism Awards and the MPASA PICA Awards. In her spare time she writes poetry and fiction.
Read her blog Artificial Intelligence: Articles, essays and riffs about new media, media, branding, economics and current events.
The Daily Maverick The Daily Maverick is a unique blend of news, information, analysis and opinion delivered from our newsroom in Johannesburg, South Africa. There are many ways to describe exactly what we do (and for the price of a cup of coffee we'll talk your ears off about it), but the best way to understand the end result is to experience it. Every part of The Daily Maverick is free-to-air and no-payment-required, although free registration is required for a small subset of functions and pages.
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Unfortunately Google are in this incredible sweet spot where very little than any of us say or do actually bites them. About the only thing I can bring myself to do is refuse to use Chrome (easy). Not doing my first-line research via Google would just be kicking myself in the pants - although I know how much information they probably get hold of on me and my work and I’d rather they didn’t. And gmail is very attractive as a free service…
Truthfully though, any company where one of the best things they can think of to say about themselves is that they ‘do no evil’ - well, it’s got to be suspect, hasn’t it? It’s like your daughter’s boyfriend coming round to the house and, unasked, loudly telling you that he isn’t a sex pest….
These are great articles though - well done on them. I’ll have to give this second one a proper read later on.
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