This is a great article of offensive and defensive customer retention strategies from both Amazon and Google. Whether they are defending current ad revenue or competing in cloud computing, the net outcome is great for customers as we benefit from linked technology and more intelligent AI. From a leadership perspective, the constant innovation and high level of inquisitiveness is making this a very interesting battle to follow.
That direct connection between Alexa and Amazon's web store poses a threat to Google. Many consumers are already turning to Amazon first when searching for products to buy, rather than using Google's search engine. Advertisers are catching on and starting to shift their ad dollars toward Amazon and away from Google. That's a big problem for Google, since ads are the company's bread and butter. And if Alexa makes it even easier to search for products and gets widely adopted, Google stands to lose even more. Google's not sitting still. It's been testing ways to have Assistant deliver ads. But the company has struggled to figure out how to do it in a way that doesn't repel users. An early experiment with using the Google Home speaker to advertise Disney's "Beauty and the Beast" resulted in user backlash.