[tubemonkey]

Why Google is terrified about Alexa, and what it's doing in response

• Amazon controls about three-quarters of the market for home automation devices, according to a report last month.
  
• Google is adding reminders to its Google Home products to make the devices more personal.
  
• In moving to voice, Google has to protect privacy and figure out how to monetize data.

Amazon's early lead in the home is a problem for Google — and not just because Alexa is outselling Home by a wide margin.

In the new world of voice-powered computing, Amazon is rolling out popular features like skills and reminders that take users entirely out of Google's massive ecosystem. Late last month, Google added reminders to its home assistant, a long-awaited feature that lets consumers get voice prompts to walk their dog or take out the trash.

Even as Google plays catch-up with new functions and lures users with lower-priced products, the web giant faces a business model conundrum. Almost 90 percent of parent Alphabet's $90.3 billion in revenue last year came from advertising, mostly search, video and mobile.