Posted: 18 Oct 2011 06:09 AM PDT

In July, Google's arrangement with Twitter to index all tweets, make them searchable in realtime and have a REAL historical search database of tweets that goes back further than the recent past (a trick that Twitter itself can't seem to figure out) came to an end. It was a blow to both parties because Google lost a valuable piece of the social graph for its index which limits its abilities to take real social cues for search results and Twitter lost 65% of the US search market and even larger chunks of that market internationally.

Now some would say that Twitter should be fine because it still has an arrangement with Bing and Yahoo to do the same with its search results. That sounds nice but it's the same as saying rather than drinking Coca-Cola you are only allowed to drink the grocery store version of a cola instead. Sure, you can say its cola but it ain't the real thing.

Yesterday at the Web 2.0 conference Twitter's CEO Dick Costolo gave some insight as to why Google and Twitter just can't seem to get along about this. Here is a quote from the Telegraph.

At the Web 2.0 Summit in San Francisco, Twitter's chief executive revealed to the Telegraph that negotiations with Google on renewing the partnership had failed so far.

"We [Twitter and Google] just can't agree on what the appropriate value exchange is. And I don't mean that in terms of dollars…There are all sorts of details that we couldn't come to grips with."

What would be most interesting is to learn exactly what those details are. Considering some of the changes that have occurred in Google+ lately which include realtime search and the support of hashtags (smells a lot like Twitter bird cookin' doesn't it?) one can take a pretty safe guess that as Google+ looks more like Twitter in some areas, Twitter won't be very happy.

That makes sense. So is there hope for a deal? Not if this statement is any indication.

Costolo said that despite 25 per cent of Twitter's workforce having previously worked at Google, with many good relationships still intact, he "didn't know" when tweets would start appearing in the search engine's index.

The real losers in all of this are folks like us, the searchers. It's obvious that people prefer Google for search and would like it to provide everything it can to make search results relevant. Without Twitter (and Facebook for that matter) Google's ability to use social as a search cue is hampered. While they can say that 40 million users on Google+ will provide the difference we all know that the actual use of Google+ is not even remotely close to the current level of Twitter and Facebook. It's in this scenario that the Coca-Cola metaphor referred to earlier gets turned against Google. Their version of social cues are a poor substitute for the real thing of Twitter and Facebook.

Of course, like anything else these tables could turn but for the near term it is not likely.

If you were Google would you be doing anything within your power to bring Twitter back to your search index or would you be betting the search farm on Google+ gaining enough real traction to take its place as a social powerhouse? Personally, I would be working like crazy to get another two year deal (like the origianl) in place which would give Google+ enough time to prove whether or not it can provide the depth of data to go it alone without Twitter.

But hey, Google is packed with PhD's and other really decorated folks who know better, right?

Google Wallet In Action

Posted: 18 Oct 2011 04:32 AM PDT

About a month ago, we wrote about the introduction of Google Wallet.

The video below comes from the Google Mobile blog. The point is to show Google Wallet in action and the general reaction to the service. There are plenty of smiling faces and strong reactions. What it not so clear is whether the reaction is to the Google Wallet functionality (which is pretty cool) or the fact that Google was making these purchases for these people. Let' assume there was a fair mix of both :-) . Take a look at the video though because this technology (which is only available on the Google Nexus S 4G from Sprint currently).

What's important to note is that Google Wallet also manages discounts and loyalty rewards for the merchants that are currently involved in the program.

Today, our partners American Eagle Outfitters, The Container Store, Foot Locker, Guess, Jamba Juice, Macy's, OfficeMax and Toys"R"Us are rolling out an even better Google Wallet experience. For the first time ever in the U.S., at these select stores, you can not only pay but also redeem coupons and/or earn rewards points—all with a single tap of your phone. This is what we call the Google Wallet SingleTap experience.

It's a pretty neat concept that could quickly become a real alternative to a daily deals mentality. Imagine the ability to walk down a street and get a notification (like Groupon Now) through your phone then go in and pay for it with one swipe (no fumbling for cash or cards) and you are on your way. Sounds interesting really.

When it becomes more widespread, could functionality like this be the reason to consider an Android device over an iPhone? What's your take?

Got Milk? Online Grocery Shopping Soars in Asia, Fails in US

Posted: 17 Oct 2011 01:50 PM PDT

No one in the US thinks twice about buying a book or DVD online, but when it comes to groceries, that's a whole different mind set.

According to Nielsen's 2011 Global Online Survey, only 20% of Americans said they were likely to try online grocery shopping. Compare that to Asia where 77% of the respondents said they were happy to have their dinner ingredients delivered. The numbers were also pretty high for the Middle East/Africa (48%) and Latin America (51%) all saying they were likely to shop for groceries online for home delivery.

It's funny because ordering groceries to be delivered is actually an age-old concept. Watch episodes of The Donna Reed Show, I Love Lucy or Leave it to Beaver and you'll see the grocery boy dropping off a box at the house. Sometimes he even comes in and helps put it all away. I grew up with a milkbox on my porch, which was routinely filled with fresh bottles, plus bread, eggs and other goodies. And don't get me started on the Charlie Chip man who delivered cans of potato chips and pretzels every other week.

So why are Americans so opposed to buying groceries online? Nielsen's Director Retailer Industry Insights suggests that it's because there are too many physical grocery stores in the US. We also have more access to cars and public transportation and fewer moms are at home watching the kids. Grocery shopping is easy. I have six major chain stores within ten minutes of my home and even more stop and shops if I just need a gallon of milk or a soda.

But is that the real reason we resist buying our groceries online or is it more of a visceral thing? A can of Campbell's soup is a can of Campbell's soup, but what about a steak or a bag of apples? Would you trust some picker in a store to choose the best of the lot?

For me, it's all about the price point. In a store, I can take advantage of sales and redeem coupons in order to get the best deal. I can't do that online. Then you add in the delivery fee, issues of out of stock items, and other logistics and it's simply not worth the effort. Sure, it saves me a trip out of the house and I don't have to carry the groceries. That would have been a real boon when I lived in a second story walk-up with a newborn baby. But now, grocery shopping is actually one of my favorite activities. I admit that I'm probably in the minority there which brings me right back to my question. Why aren't people buying groceries online?

The Nielsen report also examined the idea of the online/offline hybrid. Buy online, then pick it up at the store. Globally, only 27% of respondents said they'd be willing to pick up their order curbside, only 30% agreed to a drive-up window, and oddly, 36% said they were willing to go inside a store to get what they bought online.

I've no doubt that eventually, more Americans will be buying their daily bread online for delivery to their home. Once it becomes popular, we'll all sit around and talk about how modern technology has changed the way we buy groceries. By then, everyone will have forgotten about how Donna Reed used to buy her groceries and have them delivered using an instrument called the home telephone.

Sears Embraces Online for Offline with in Store WiFi and iPad Access

Posted: 17 Oct 2011 12:11 PM PDT

A few weeks ago, I went to Best Buy to purchase a new printer. We got it down to two options and wanted to compare the specs but a lot of the information was missing from the shelf tag.

Next best thing, ask the salesman, who politely suggested we could find that information online. Good idea, except that my favorite electronics retailer doesn't offer free in-store WiFi and 3G connection within their walls is spotty and highly reliant on standing in exactly the right spot.

How sad is it when technology retailer can't get the tech right?

Enter Sears, America's die-hard, age-old, retail institution. This holiday season, they'll not only be offering free WiFi at many of their locations, they'll be encouraging shoppers to go online while shopping in their stores.

Mobile Marketer reports that Sears will also be placing iPads and iPod Touch units in nearly 450 retail locations to help shoppers bridge the online / offline gap.

Joy Liuzzo, senior director of mobile research at InsightExpress is quoted as saying:

"These devices will allow floor sales people to engage with customers right where they are standing, sharing the screen rather than having a monitor in between them. It's another way to break down barriers and make the sales process better for everyone involved."

Smart move, Sears. Getting a customer into a conversation with a salesperson is a huge step toward closing the sale. Particularly at holiday time, shoppers are short on money, time and patience. It's also when they're shopping for items that don't know anything about. "My son wants this video game I've never heard of. . . "

With an iPad in hand, the salesperson can show off the benefits of a product, access product details, online reviews and prove that Sears really does have the lowest price. What more could you want in a shopping experience?