20 Aug
2010

For the past two months now, I've been talking with people in the marketing industry on my favourite topic, know by the people as Branded Utility, or Marketing with meaning or Marketing as a Service. During these amazingly exciting times with these unbelievably smart and gifted people I've many times of Holy Grail project, the one that is mentioned pretty much in every blog post and every book about the topic, the Nike+. The product was massively important to the Nike; the amount of free publicity it got is immeasurable (or is it... maybe do a paper on that). In addition to that, it made a huge impact on the company itself, adding a layer of technology oriented products to a sporting equipment company. And not to mention the impact it did on the jogging/running industry and the experience in general.
Though I want to mention today another super duper Branded Utility, Google Maps. After Google made a huge chunk of money, many wondered what they would do with it, what would be their next line of products and what would be the firm’s next buyout. It started developing and offering strange software product, and started buying nontrivial assets: Google Earth, Blogger, Picasa, Google Desktop and many many more. At the time, everyone wondered about Google’s strategy, for the business people, it didn't seem right. They were just throwing money around in panic, they said.
But lets look at Google Maps and at how much it grew throughout the years, what is the purpose of such a product for the company?. At the time they might have thought that they can turn it around into a profitable business faster that it actually does. Well it might become one, maybe even soon. But until now, it has been the perfect Branded Utility ever created. Its light colours and simplified interface are graceful yet playful (just like the Google logo) which enforces the company’s perceived brand and values, but more importantly, it is usable. And massively. In fact, in today's blog post by Google, it states that Google Maps had passed the 100m users a month milestone with just its mobile users!
Unfortunately I could not find the exact sum of buying ZipDash, Keyhole, Inc., Endoxon and ImageAmerica, the four companies that served as the base for Google Maps, but my estimates would circa $100m over a period of five years and still left with some change. Considering even adding development and support for the product, we might even double that. Now lets take another piece of interesting data, the business insider's chart dated May 2010 showing How Much Tech Companies Spend On Advertising:

What’s interesting is that Google allegedly doesn’t spend almost any money on advertising, especially comparing to the other boys, but is that true?
I think Google is just tapping in to the new stream of advertising I so passionately support. Advertising through people’s experience. Letting an over the top satisfied customer, be the driver and advocate of your business. If we look at the bottom line, at a fraction of the cost, they are buying consumer usage and belief and further down the road, a revenue-making asset that will no doubly find itself as one of the companies most earning products.