Alphabet creates opportunities for localization, according to new research from Forrester.
Last month Google restructured by splitting its core offerings – search, advertising, apps, maps, YouTube, and Android – from the most experimental facets of its business. In Google Alphabet Will Upend Local Marketing Practices, a brief released earlier this week, Forrester researchers claim that the split allows Google’s main properties to localize better and ultimately creates several new opportunities. Forrester adds that other companies can learn something from Alphabet, and emulate its approach to local and regional products and marketing.
Forrester’s report points out Google’s issues in other countries such as the recent anti-trust case in Europe, its contentious relationship with China, and even mentions its current legal situation in Russia. This restructuring allows Google to adapt more easily to regional regulations, changing the way it does business in foreign markets.
“We believe that, within 18 months, Google will launch Google Europe with a new search algorithm and fully localized servers,” the report’s authors say, adding that its operations will be split into a separate subsidiary of Alphabet. “Doing so will give it greater control over data processing for European residents and reduce its risk of running afoul of the [General Data Protection Regulation (GDPR).]”
Additionally, Forrester believes that Google China will be restructured in the near future in order to meet government demands. As a separate entity, Google China wouldn’t have the Western expectations of privacy and free speech, making the company more able to abide by Chinese regulations.
Another localization advantage of Alphabet involves leveraging different locations. With a greater presence in other countries that’s seen as distinctive from Google, the company will have an easier time using local servers for data storage, local talent for SEO, Google Wallet payments management, and local data for improved audience targeting around the world.
According to the report’s authors, “Hyperlocalization is crucial to multinational success. This isn’t just about compliance either – it’s about anticipating cultural differences and meeting them because it’s right for the customer.”
With a focus on hyperlocalization, Google could set a precedent for other companies. According to Forrester, localizing customer data protects digital businesses from the GDPR. It says, “Contextual privacy creates a digital paper trail for permission-based marketing, and lets firms respond to regulators’ data protection inquiries authoritatively.” This also keeps their data practices from being obsolete.