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Google failing in Korea?

G struggles in one of the world's most internet tech advanced countries.

         

GrendelKhan TSU

6:02 pm on Apr 30, 2006 (gmt 0)

10+ Year Member



this shouldn't be anything new to folks around here, but I figured I might as well post the article.

Google fails to make inroads in S. Korea

Google Inc. has seeped into many aspects of online life across the globe, but the Internet search engine has failed so far to make any notable inroads in one of the world's most-wired countries: South Korea.

the reasons are many and for once, the article does a decent job of summarizing the main issues. search WebmasterWorld for many of my opinions on it...but they are basically just repeats of stuff mentioned here. but I think this quote basically said it straight...

"Google's site is just not enough for everything. Their search results especially are too limited,"

article [seattlepi.nwsource.com]

quite a different tune than the one everyone is used to hear around these parts huh?

so sayeth GrendelKhan{TSU}^^

Woz

11:39 pm on May 1, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Interesting Grendel, this seems to be a good example of trying to push current technology/practices onto a marketplace instead of evaluating the marketplace and adapting to it's needs.

"It's sort of a unique place - South Korea is a place where humans and search still survive and thrive," he said.

As the article says, Google relies on automation, whereas the Korean community thrives on interaction, partly due (only partly) to the lack of information available in native tongue.

A lesson for us all I am sure.

Onya
Woz

rohitj

3:30 am on May 2, 2006 (gmt 0)

10+ Year Member



the big question is--who is doing right?

GrendelKhan TSU

5:55 am on May 2, 2006 (gmt 0)

10+ Year Member



been a while since I've delved into a topic...so might as well.. (you've been warned. lol ;))

Interesting Grendel, this seems to be a good example of trying to push current technology/practices onto a marketplace instead of evaluating the marketplace and adapting to it's needs.

well its partly that.

1. G Korea talks a lot about localizing and being very sensitive to local practices etc blah blah blah. but in the end, I've seen little in terms of proof (or actually results). Up to now...(years)...its been just that....
talk.

2. To be fair to the big G though, they are not really playing from a level playing field. Korea is very VERY proprietary in ....everything. Everyone (portals included) are very protective of their "stuff", especially any technology. For example, Korean internet banking is often sighted to be the most secure in the world--- mostly because there are so many dang korean hackers that they had to massive upgrade. heh. I can personally attest to banging my head against many walls in frustration with 239847239847 hoops one needs to jump through just to some internet banking or buy something online.

What does that mean for G?
Well..most significantly, this has translated into all the portals (the one that count at least) blocking the googlebot from crawling their precious content. ie: So all the "best" info is basically....cut off from google. They get the news and well...the scraps, so to speak.

so.....
* blocked for the "automated crawl" from all the best content. Imagine blocking Gbot from WebmasterWorld! o_0 heaven forbid. =p
* and no real efforts (certainly not effective ones) to generate their own USER CREATED content.

yikes. now what?

well.. they have the now infamous Google Bus and some informal stuff going on with a local blog company, desktop search...er...personalize webpage.....
but none are equal to anything but a blip on the massive Korean internet screen. (I even think koreaclick overestimates G's referrals, but that's another story).

I've said it plenty in the past, Korea is like a huge LOCAL market... one that thrives on a heavily wired, tech savvy, slick interfaced and proprietarily SOCIAL networks. So, you are in or you are out. And G is out.

UCC (User Created Content) or interaction is key out here. And Korean portals provide community and social networks in comfortable (koreanized) proprietary settings.

and G has none of this. worse still...it looks like crap to Koreans. Even yesterday, I had to "convince" co-workers that Google is large company with good, technologies. He scoffed with the remark of "just look at it!". lol its quite surreal.

Gaming market is a good example of this korean social network phenonmon (if it can be called that)...

Korea is by far number ONE in the world for MULTI-PLAYER/INTERACTIVE gaming (in everyway) and harbors more than 50,000, 24hour PC rooms across the nation (its like institutionized LAN gamer parties. lol). Yet still falls behind other countries (like japan) for console gaming. ie: Koreans love games and tech, but will take something interactive and community based over single player anyday.

This also supports the idea that is a lack of Korean content to crawl (as the article states)...
Korea is an active highly localized (they like things to look and feel "korean"), social network that generates massive amounts of user created, PROPRIETARY (no else gets access) content.

So, it stands to reason, koreans just don't make many websites (relatively speaking) outside of the protected walls of the largest Korean portals.

ie: nothing for G to crawl. wah!

the big question is--who is doing right?

depends on what you mean by that.

The ubiquitous and egalitarian, making the world's information more accessible mission of Google is exactly makes Google Korea bad. Its only useful (in effect) for those people looking for information "outside of korea", so to speak. Sure there are lots of those people. (Apparently, about 10% according to Koreanclick. lol.) How many times do you search for information that can only come from sources NOT in english for example or related to something ultimately "local"/personal?

Without breakin the UCC or proprietary wall (either with a dramatic shift in priorities or a big Korean company buyout), G Korea has little chance (imo) making headway in this market.

Granted, as it stands now...
G korea IS making money (so say the recent reports)... which is good. But there were also recent public announcements that they are losing two of the biggest --almost ONLY-- portal partners....which is bad.

are they losing the game overall? (so far)

-in terms of raw numbers or current status....
-in terms of market share --- yes.
-in terms of branding --- yes.
-in terms of localizing succesfully -- yes
-in terms of long term distribution -- yes.
-in terms of successfully acquiring local players -- yes.
-in terms of their actual internal goals? who knows.

One could argue that their success/failure is relative to the amount of effort they have put into the market here or level of their actual expectations here ("everyone knows China is the market of choice, so to speak. and they seem to be doing ok there. )

...but that's call only Gmen can make.

I have stopped saying "they are gearing for a big move" a while back. I really starting to sound foolish. It still may happen.... but as the market looks right now.... their problems in Korea are gunna take a lot more than any bandband fix buyout at this point (imo).

ON a side note: its interesting that from a globalizing perspective... developing such blatantly INaccessible internet technologies is a bad idea. Develop for the masses. Bigger is better. you will do better if the whole world can play too.

Yet, do to broadband from the beginning, and korean culture factors...

this strategy seems to be working out quite nice for Korea, I recently read an article that many countries are now benchmarking Korean sites). So, "holding out for this long" (with the help of 28million active users).... has lead unique internet technologies and business models that are have quite literally grown completely outside the radar of the rest of the world.

I mentioned cyworld long time as something to watch popping up as a new biz model for other parts of the world. And so it has.

- Korean mini-hompy? Enter Lycos Planet
- Knowledge search? Enter Yahoo Answers.
- Avatar search? its happening with a..(crap can't remember the company name...but some US company)
- I still contend that the new "mixed results" listing that Google people are here have noticed G testing out (eg: SERPS divided into sections for different kinds of results)... is straight from the Korean "combined search" playbook.

the list doesn't end there...and I KNOW there will be more. Don't even get me started on some of the cool mobile stuff. (I believe KoreaTelecom just made a deal with some big US firms to help them develop wi-bro and DMB mobile services (already growing fast in Korea now)

You want a crystal ball internet technologies on the market in the US (engish speaking word)? ....

start learning Korean. ;)

so sayeth GrendelKhan{TSU}

Woz

6:41 am on May 2, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Ahhhh, so there is more to it than meets the eye. Not having access to local content is certainly going to hobble any search engine's ability to index and serve that market. Even so, there is a lot more at play here given the need to understand the local culture before trying to index it.

As has been said many times before (can't remember who by though ;) ) Sth Korea is a Community Based market, and Search Engines in their raw state are not, and do not have, communities. Hence Naver's success.

I have always thought Grendel though that your post regarding Alternate Serps in Korea [webmasterworld.com] had a lot to offer to the Search Market in general, and I am not surprised at Lycos taking up some of those options. I suspect we will see even more Search Alternatives enter Western Mainstream Search in the near future. The so-called WEB 2.0 springs to mind.

But then, we digress. How do you think Google, or any other Search Engine for that matter, can combat the "content access" problem?

Onya
Woz

GrendelKhan TSU

12:13 pm on May 2, 2006 (gmt 0)

10+ Year Member



How do you think Google, or any other Search Engine for that matter, can combat the "content access" problem?

the obvious ways...

1. Can't access content? Start building your own. Building their own channel for user contributed content (and that'd be very "googley" of them too). Knowledge search is not THAT different from Google Answers. If they opened that up (made it free)... they at least have something to start messing with.

There are actually a bunch of things they could do to build their own user contributed content...but..... Well... I don't want to give away ALL my ideas. ;) :p

2. Don't deal with it.

Daum stock fell on rumors of G starting up an R&D center here. (Don't know what happened after initial report ...but it was a big enough rumor to make the paper.) So, just avoid the issue (or hang out till you get lucky) and just concentrated on developing cool new stuff to unleash upon the world that actually like them.

3. buy out, buy out, buy out.

Timing is right for some interesting purchases (imo)....not necessarily in the areas you might expect either. Korea has tons of cool "up and coming" stuff. Might not be a bad idea to buy and play around with some of them while they can. (look what happened with Keyhole... no one knew what the heck that was gunna be good for at the time). lol

4. um.. they could *heaven forbid*...ADVERTISE! o_0 Overt korea did. Big time all across their own network. And now Over dominates PPC while G continues to lose its PPC partners.

So after a bit of a design upgrade of course or finishing developing a UCC channel of their own.

G could find an angle (positioning) and ACTIVELY implement a smart and interactive MARKETING and Advertising plan. you know...like 99% of the other companies in the world. heh. I said, Korea is a tight local/niche market...so it stands to reason that some more traditional national advertising (done well) would actually have pretty powerful impact. "National" advertising is effect would be "national level target marketing"(from a global G viewpoint).

G is different from the rest out here for sure, but they don't try to leverage that all....as GOOD point (bus notwithstanding). It feels to me, like a situation where you have to apologize and explain them...for being simple and er...lacking in design...rather than where that as a badge of pride. They are TOOOOO used to just naturally rising to the top...that its like they don't how to actually put any effort into creating a brand image and advertising.

And truth be told, I think Korea is the only country where they actually HAVE made attempts AT ALL for it (again, enter the Google Bus and banners all over the "popular" area of Seoul). So they aren't totally blind to the issue. But the whole "testing the market/learning the local market" thing is tired...they've had...like... 5 years to learn it. Are we still on internet time or what?

Now...I understand why a big company wouldn't want to advertise during the SuperBowl -- the ultimate in NON-target marketing. But korea is relatively small, a homogenous culture with relatively similiar tastes. Market Penetration is HUGE...which is why a single color page ad for one day is about $60,000 - $80,000 (yes you read that right). But does G REALLY need to zero in on whatever market that much in a market where they are battling portals that control 90% of a homogenous market?

ok. ok. yes, the Korean market also historically responds VERY well to in-the-trenches guerrilla type marketing (see, touch, feel), but the "word" is spread through those aforementioned channels (eg: portal blogs, and mini-hompies) and/or via mobile. both of which wouldn't help G much.

That said, smart Product Placement (referred to as "PPL") in TV drama and movies could be a great way to start the "what is google?" buzz. Simple yet VERY effective in this market. VERY. (Korean Dramas are a huge trend throughout Asia right now in fact...so secondary benefits would be great as well). Its expensive and you need the right connections.... but Big G should enough of those.

A combination of all three would be a sure way to make a statement (for G or whatever upandcoming SE). Difference is G Korea has the resources to do so... just not the mind to (or so it seems). go figure.

I wish they'd stop sitting on the fence being super cool and waiting to grow naturally via they're own Googliness. Hey G! IT DOESN'T WORK HERE. GET OVER IT.

Buy in or sell out... but one or the other....SOON. sheeesh.

<sorry...had to vent. you know I've been tooting the G horn for years now.>

your post regarding Alternate Serps in Korea had a lot to offer to the Search Market in general

wow Thanks! I forgot abut that post.^^ I always kinda figured people just glazed their eyes when I go off. heh.

actaully, its interesting to look at that now...since we talked a lot about knowledge search at that time and now Yahoo Answers has launched (direct copy of the KS search model). I wonder how Yahoo Answers will hold up in terms of search in the English markets compared with Korea. time will tell..but I bet eventually there will be some converters once it hits critical mass and incentives start up proper.

but that's just me. :)

GrendelKhan TSU

2:20 pm on May 2, 2006 (gmt 0)

10+ Year Member



btw...it should be noted... Google is not the only example of powerhouses failing in Korea.

There is an impressive list of global giants that enter Korea with all the muscle of a number 1 global brand and leave while shaking their heads with the perplexed "what happened?" look.

How do Wal-Mart, Nokia, Nestle, Bestfoods and yes, Yahoo sound as just a few examples? (yahoo started out ok....but is now got big troubles: Yahoo Korea is in trouble [webmasterworld.com])

They are all world’s No. 1 companies in their industries.
... and all have failed to succeed in Korea. Many have already pulled their units out of Korea (eg: Nokia) or are still flailing about trying to figure out what to do with their performances (eg: Google).

Google's failure here thus far is deeper than being locked out of the crawl. Its a failure to localize and captilize on a OBVIOUSLY wired community based market (as of yet). Ironic given everything.

There is still time, imo....
but for how long is anyone's guess. The longer G waits...the more expensive it will be to break into the market to any significant degree.

--so sayeth GrendelKhan{TSU}

Avatar search? its happening with a..(crap can't remember the company name...but some US company

ps. I double checked...Yahoo! is the culprit. Their avatar service is borrowed from local Korean company Neowiz. (Makes sense, I mean they have the most direct line via Yahoo Korea...now if only the US corporates used it more! =P )

LifeinAsia

3:59 pm on May 2, 2006 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



It's so difficult for "foreign" (i.e., non-Korean) companies to comprehend that the Korean market is significantly different from the domestic market (or even world markets) they are used to. This is so true not just at the country-level market, but the various sectors as well.

The other problem is that even for those companies that do understand the differences, they still have to deal with "outsiders" (e.g., shareholders, end customers) that don't understand the differences. So they are stuck in the uncomfortable position between the Koreans doing things one way and the other groups who still want things done another way.

Yet a third issue is the dichotomy between the domestic Koreans and overseas Koreans. Many overseas Koreans are very Westernized, yet still have stronger Korean language skills. The overseas Koreans represent a huge market, yet are very difficult to target because companies can not target them the exact same way they target other markets in English, not can they use the exact same way they target the domestic Korean market.

GrendelKhan TSU

9:31 pm on May 2, 2006 (gmt 0)

10+ Year Member



As the article says, Google relies on automation, whereas the Korean community thrives on interaction, partly due (only partly) to the lack of information available in native tongue.

A lesson for us all I am sure.

very true.

And actually...

although this lesson is highlighted by Google Korea (imo) but applies universally. I mean, isn't this the exact lesson markus007 and his "how I made a million dollars in 3 months [webmasterworld.com]" site gave? From what I understand, his site is almost 100% about the interaction of its members.

I even recall him saying that if all the search engines disappeared tomorrow, he'd hardly notice.

Marcus' first post could be an analogy to Korean portal search vs. Korean Google...

Have your users create content and lots of it.... Build your site around your users and make them part of your site, don't build your site for consumption.

a good lesson indeed. ^^

JohnDoealias

3:59 am on May 3, 2006 (gmt 0)

10+ Year Member



Hello all,

Hmmm. This is first time I write post at this forum.
I am from Korea. I have lived here all of my life except 6 years abroading U.S.
What you've discussed were right. But in the other hand, you are all wrong. You all are missing big, big thing...

1. There is no such thing as Google Korea.

Means, there is no official Google in Korea. No subsidiary, no branch. Only a 'marketing office', Google said. Therefor no official representitive.

Woops. It is going to be long post. I am going to have come back after lunch. To be continued...