Google is working on new ways to reach internet users with ads, potentially taking information from existing customers and using it to bring them back to a website.
Using email address under Gmail, Google would be able to track orders amongst other things. If an advertiser wants to target an audience who have already bought or checked out the website, it might be much easier to sell again.
This would be a lucrative opportunity for Google, one it has been working on for some time. Having this preference could up the rate-per-ad, giving advertisers even more incentive to pay big money for the best returns on investment.
Google has been gearing up for a battle with social giant Facebook for years now, even since the social network started to get smart with adverts. In 2014, it managed to change video by creating silent autoplay videos, something that has worked tremendously for retention rates.
Even though Facebook’s £7.79 billion advertising revenue is a fifth of the size of Google’s £40 billion, it is worrying for the search giant, who has never had so fierce a competitor that is capable of offering something Google cannot - social integration.
This lack of a social connection may force Google to start stripping away its services and finding information wherever it may be, even if it annoys the users who do not want more of their privacy rights stripped away in a battle for higher advertising revenue.
Google may start with limited resources and advertisers, but it won’t be long before it is trying to compete heavily against Facebook using this method of custom advertising.
Reports say Google may even go as far as to acquire Twitter for £22 billion. It is in talks with the owners, who do not seem keen on selling. Twitter would be a direct push into social, giving Google a massive boon in potential revenue.
For all of the revenue available in advertising, reports say Google is trying to wean itself off full advertising for profit. It currently is the dominant force of Google’s success, with 90 per cent of the revenue and a fat lot more of the profit coming from advertising.