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Contributors: Douglas McIntyre Jon C. Ogg

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Wednesday, September 13, 2006

Yawning Over an Intuit and Google Alliance

Today Google (GOOG) has announced an alliance with Intuit (INTU). The companies are forming an alliance around QuickBooks with Google's reach that is aimed at helping small businesses attract new customers. This will be built into most QuickBooks 2007 products.

The focus is so small businesses can use QuickBooks to market themselves online by listing their businesses on Google Maps(TM), creating and managing advertising campaigns with Google AdWords(TM) and posting their products for sale on Google through Google Base(TM). QuickBooks customers will have the ability to attract new customers using Google, the world's leading search engine.

Here is the combined message on the product:

Two Companies, One Powerful Solution

QuickBooks 2007 will include several services that provide an easy way for small businesses to use Google to get their businesses and products noticed on the Internet -- right from an icon on the QuickBooks Home page.

Google AdWords -- Currently used by hundreds of thousands of businesses worldwide to gain new customers in a cost-effective way, AdWords relies on keywords to precisely target the delivery of an ad to Web users seeking information about a particular product or service. Starting with $50 in Google AdWords credits, QuickBooks users can use AdWords to advertise themselves online.

QuickBooks users can select search terms related to their product or service and create customized ads that show up when shoppers search on Google for those products or services. This feature gives small businesses full control over their budgets, allowing them to stop or pause their campaign, monitor their spending or change their advertising messages at any time.

The reaction:

There was an initial pop in Intuit (INTU) but the shares sold back off immediately. The shares are down 0.4% at $31.96 on the day, so it doesn't look like the market thinks this will drive much more to INTU's top-line or bottom-line. Google (GOOG) shares are still up 2.8%, or $11.10) at $403.00 after Cramer put a $500 target on the stock last night.

Any new interest in eithername is going to be from other issues, because this news is probably more noise than it is news.

Jon C. Ogg
September 13, 2006

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