Google Migrates into Aggregation by Acquiring BeatThatQuote

March 8, 2011 - PRLog -- Google spent US$1.6 billion in acquiring 40 companies during the first nine months of 2010 as the Internet search engine company aggressively implemented a strategy to acquire talent, companies and technology. The recent acquisition of UK's BeatThatQuote, a financial services price comparison and aggregation site represents one of the first investments for Google in the consumer finance aggregation field. The beginning of 2011 has been relatively quiet in terms of acquisitions although Google is seeking to accelerate this activity, supposedly buying a company every fortnight.

The consumer aggregation sector along with affiliate schemes, represent key sectors in the Internet eCommerce field. A significant volume of independent players operate in this sector and Google's recent move into buying aggregator websites and brands will cause concern for some large players such as moneysupermarket.com. The importance of affiliate and comparison websites is often over-looked. For instance, the Amazon affiliate network via Amazon Associates accounts for 40% of the company's total revenue.

Google has acquired BeatThatQuote for a total of £37.7 million despite the company making a loss of £2 million with revenues of £8.5 million. This recent purchase expands Google's involvement in price comparison products having already acquired Comparison Ads in the US and operating a limited UK focused offering on credit cards and insurance. Google's acquisition of BeatThatQuote represents a further step for Google to operate websites which directly compete with the consumer finance aggregators such as moneysupermarket.com and comparethemarket.com. Interestingly, Google plans to build up BeatThatQuote as a standalone UK brand; a move which will most possibly result in Google's involvement behind these brands being hidden to the consumer.

The consumer finance aggregation field is viewed by Google as being too complex, with consumers having to click too many times to view the relevant information online and with the major players bombarding consumers with email marketing; a trait which Google sees needs to be improved and changed.

The major independent players in the aggregation and price comparison field for financial services are likely to be nervous about Google's acquisition of BeatThatQuote and as Google continues with an aggressive strategy of acquiring companies in 2011, this situation is only likely to become more prevalent. The Internet could be entering a new phase where Google begins migrating from search and more into aggregation and price comparison.

Author: Mike King, Analyst

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