Google has acquired Like.com, a visual search engine for online shopping. The deal is believed to be aimed at boosting Google's shopping search capabilities and services like its Product search engine.
Like.com announced the deal on its home page on Friday and a Google spokesperson confirmed it.
Using computer vision and machine learning technology, Like.com provides a visual search engine focused on shoes, clothes, jewelry and décor. According to a company description on the website, "We've developed technology that lets us understand visually what terms like 'red high-heeled pumps' and 'floral patterned sleeveless dress' mean and created algorithms to understand whether those pumps complement or clash with that dress."
On pcmag.com, David Murphy described Like.com as "a bit like online shopping with a twist -- instead of pushing through products and pages in a manner similar to flipping through a print catalog, Like.com focuses on identifying characteristics to drive user interest. Or, in other words, its 'Visual Shopping' technology drills down to the core of what makes a product interesting to a potential purchaser. Like a particular color? Like.com will serve up all items, within a particular category, that best match the shade you're looking for. The same goes for patterns, shapes, and details."
Mr. Murphy said Google has dabbled in such technology. Last year, it rolled out its "Similar Images" functionality for its normal Image search but that technology has yet to be extended to its Product search.
Like.com makes money on affiliate links which are estimated to be as high as 10 percent. It also owns Covet.com, an online personal shopper for fashion products, and virtual fashion studio Couturious.com.
The deal, which had been rumored, comes amid speculation that Google is further looking to maximize the potential of its product search business, according to Fortune. In a note in July, Merrill Lynch analyst Justin Post saw Google's pending acquisition of ITA flight tracking software as one of the first steps toward that goal.
"These changes are transforming Google into a more competitive, closer-to-the-transaction e-commerce platform, with the potential benefit of: 1) bettering traffic share gains and 2) improving conversion rates (up to 30 percent in some formats), leading to higher CPCs (cost per clicks)," wrote Mr. Post.
Squeezing e-commerce intermediaries out of referral fees could net Google as much as $1-2 billion annually over the next three years, estimated Mr. Post. Google could start ranking results by the commission it receives to further increase revenue from product search.
"Product Search has evolved to become the number one comparison shipping site," wrote Mr. Post "While Product Search has the potential to provide incremental monetization of $200 to $300 million per year, it is more likely that Google will continue to use Product Search data feeds to help funnel merchant data to higher value ad formats."
Discussion Questions: What do you think Google's purchase of Like.com? Do you think Google will be able to reshape online comparison shopping and the product search market?