Based on information from the New York Times, Google has assembled a team of 160 engineers dedicated to Project Magi.
Project Magi serves as a preliminary stage towards the development of a forthcoming search engine by Google that aims to replace the current iteration we are familiar with.
Although specific information about the new search engine remains scarce, there are some details available regarding Project Magi.
Chat like interface
Google aims to revolutionize the search experience by making it more conversational in nature. They envision a scenario where you can ask questions just as you would with a person and receive accurate responses, similar to the way ChatGPT functions.
Think of how you interact with an intelligent assistant like Alexa, but imagine a more advanced version that learns from your previous conversations and adapts and learns in real-time as you ask questions.
This represents the next natural progression in the field of search. We all desire answers, and more importantly, we desire relevant answers tailored to our individual needs.
The traditional approach of displaying ten search results per page, which may not necessarily provide the exact answer we seek, is the problem Google is attempting to address.
However, it’s important to note that this approach may not be suitable for all types of search queries. Instead, it should be seen as a stepping stone towards previous advancements like Google’s knowledge graph.
The significant change, though, lies not only in the search experience but also in how Google plans to facilitate transactions, indicating a broader shift in its overall strategy.
Transactions will be able to happen on Google
Google has decided to expand its services by incorporating transaction handling directly on its platform. This means that instead of being redirected to other websites for purchasing items like shoes or booking flights, Google aims to provide a seamless experience within its own ecosystem.
The idea is simple: why should you have to visit external websites to buy a specific pair of shoes when Google can utilize its knowledge about you to show you the exact shoes you desire, and then allow you to make the purchase with just a single click?
By leveraging the information they have about you, such as your shoe size, preferred color, and even whether you need wide or narrow shoes, Google intends to personalize the shopping experience. They also recognize that different brands may have variations in sizing, which they will take into account.
Moreover, Google already offers a payment service called Google Pay, which can be seamlessly integrated with this new feature, making the transaction process even smoother and more convenient.
What does this mean for Marketers?
Although ads will continue to exist, Google, being a business and a publicly traded company, has the imperative to generate profits in a sustainable manner.
However, the way ads function is expected to undergo significant changes in the long run.
Currently, advertisers pay for ads based on a cost-per-click model. From the advertiser’s perspective, they calculate the cost per acquisition and analyze the profitability of their campaigns from a profit and loss standpoint.
If a campaign proves to be profitable, advertisers allocate more funds to increase their click volume. Conversely, if it yields unsatisfactory results, they reduce the amount they are willing to spend per click.
Our belief is that Google will eventually transition to a cost-per-acquisition model. This shift would simplify the process for marketers and potentially enhance the overall user experience.
Plus if your website isn’t great you can still make money as it is all happening on Google’s end. From an SEO perspective, there are always keywords that will drive traffic to your site. At one point when you wanted to find out what the weather was you would have to go to a site like Weather.com. But now Google just shows you the weather.
Even with changes that may take clicks away from your site, overall they have still been driving more traffic.
I would expect these new features to increase traffic on Google, which will help counteract some of the clicks that would be taken away from your site.
Plus there will be a new form of SEO. When Google is searching for products or services to show people through Project Magi, how can you optimize your site so that they show your products and services.
It doesn’t matter as much if someone clicks on over to your site, what really matters is who is getting the sale. If you are, it’s still a win.
How specifically will Google’s Project Magi affect e-commerce?
Project Magi has the potential to significantly impact the world of e-commerce, presenting both opportunities and challenges for marketers, brands, and retailers. Here’s why they may need to reconsider their online selling strategies:
- On one hand, conducting transactions through Google would offer a streamlined checkout process with fewer hurdles. However, it is possible that Google may require a portion of the final sale, leading to potential pricing adjustments for sellers.
- With Google Magi’s focus on personalized search, it may become more challenging for marketers to capture the attention of new customers. Conversely, it could be easier to showcase new products to existing customers, as Google will tailor recommendations based on user preferences.
- Maintaining excellent product feed management will be crucial. It is essential to avoid penalties or negative consequences in search results imposed by Google due to improper feed management.
- Delivering a top-notch customer experience will gain even more significance. If Google detects customer dissatisfaction with a particular seller’s purchase experience, it may impact the visibility of their products in future searches.
- Advertising and campaigns may undergo transformations as well. Magi could potentially suggest product ideas as part of a marketing campaign, or ads might appear directly beneath search results, offering a convenient way to target a receptive audience.
These are just a few possibilities of how Magi might reshape the shopping experience within Google. While it is unlikely to immediately replace Google Shopping, contemplating its potential impact is indeed intriguing.
Contact Raging Bull Digital
The idea of e-commerce moving more towards selling on marketplaces, social commerce (selling on TikTok, Pinterest, etc.), and connected commerce has never been more true. Google’s latest project shows that the e-commerce industry is constantly iterating and revolutionizing how we shop. The rise of ChatGPT and AI means we may experience this new Google sooner rather than later.
If you wish to stay ahead of the game and ensure that your product feeds will always be fully fleshed out and optimized for Google, feel free to contact us to learn more about our e-commerce website solutions.