How Chrome has helped Google’s Core Search Business Reduce Traffic Acquisition Cost ?
According to StatsCounter, Google’s Chrome is the top Web browser on desktops with 40% market share surpassing Microsoft’s old and lethargic Internet Explorer. Google realized early in the game that a large percentage of worldwide searches come from the toolbar and browser and hence Chrome became Central to Google’s Strategy.
Chrome is extremely important to Google, as Chrome provides Google with valuable data on Web user activity. While users can opt to not be tracked individually, data on Web browsing activity can be aggregated to help optimize search query results, and also could be used to help target Google’s display advertising. Also, Google indicated that it has built in features within Chrome that have helped identify poor quality Web sites.
The value of a Chrome user is significant given that it provides a better user experience and Google can better monetize Chrome users than non-Chrome users with more searches going directly to Google. [Browser Settings does provide consumer to change default Search Engine, but not many change it] If a user searches in a Chrome browser or Google search box, Google may pay little to no TAC for a related paid click (vs Google paying a revenue share for each paid search click on a default search box).
Google is also serious on gaining traffic from mobile browsers using Chrome. In February 2012, Google launched the Chrome mobile browser for the iPad and iPhone as an alternative to the iOS’ mobile browser. By providing a better user experience, Chrome has an opportunity to gain market share and reduce TAC paid to Apple from searches> in the Apple’s toolbar.
Another potential benefit of Chrome is that can be integrated with other Google products and services, and may be able to help
drive Google product branding and distribution (such as Google +).