Comments on: The dirty little secret behind Google’s business model http://www.technovia.co.uk/2010/04/the-dirty-little-secret-behind-googles-business-model.html Ian Betteridge on Macs, mobiles, and technology Sat, 28 Jan 2012 00:45:26 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Ian Betteridge http://www.technovia.co.uk/2010/04/the-dirty-little-secret-behind-googles-business-model.html/comment-page-1#comment-4409 Ian Betteridge Wed, 16 Jun 2010 13:01:50 +0000 http://www.technovia.co.uk/?p=2906#comment-4409 <p>Sam, you're missing the point: Ads on Google's own properties are also contextual, especially of course search. But contextual advertising is getting, well, less contextual and more useless. There's a good reason that Google has been upping the priority of advertising on its results pages - the click throughs have been declining.</p> Sam, you’re missing the point: Ads on Google’s own properties are also contextual, especially of course search. But contextual advertising is getting, well, less contextual and more useless. There’s a good reason that Google has been upping the priority of advertising on its results pages – the click throughs have been declining.

]]> By: martin http://www.technovia.co.uk/2010/04/the-dirty-little-secret-behind-googles-business-model.html/comment-page-1#comment-4277 martin Thu, 29 Apr 2010 15:27:58 +0000 http://www.technovia.co.uk/?p=2906#comment-4277 <p>i'd rather think, that advertising itself is the fantasy here and that it really <em>is</em> dying. that is: paying money for publishing "ads". what will be coming after ads? nothing that will replace this business model, i'm afraid.</p> i’d rather think, that advertising itself is the fantasy here and that it really is dying. that is: paying money for publishing “ads”. what will be coming after ads? nothing that will replace this business model, i’m afraid.

]]> By: Sam Needham http://www.technovia.co.uk/2010/04/the-dirty-little-secret-behind-googles-business-model.html/comment-page-1#comment-4276 Sam Needham Thu, 29 Apr 2010 11:41:57 +0000 http://www.technovia.co.uk/?p=2906#comment-4276 <p>How about reading that paragon of tech journalism, The Independent, for some actual reporting, some actual numbers? Like, what proportion of Google's revenue is on its own sites (paid search etc) vs 3rd party contextual (Adsense for content, Doubleclick etc) ?</p> <p>http://www.independent.co.uk/news/business/analysis-and-features/google-juggernaut-rolls-on-1947316.html</p> <blockquote>"Google makes almost all its revenue through online advertising. Ads on its sites generated $4.4bn (£2.9bn), up 20 per cent year on year. Those it placed on third-party sites for clients generated $2bn (£1.3bn), up almost a fifth" </blockquote> <p>Google makes 69% of its advertising revenue from its own sites, a ratio which is rising and has been (rapidly) for several years. I'd look up the numbers, but rather like you, I can't be bothered.</p> <p>Google's business model is "founded on a fantasy"? Even taking out <em>all</em> 3rd party revenue still leaves quarterly revenues of $4.4bn, rising 20% y-on-y. That's the kind of fantasy I like.</p> How about reading that paragon of tech journalism, The Independent, for some actual reporting, some actual numbers? Like, what proportion of Google’s revenue is on its own sites (paid search etc) vs 3rd party contextual (Adsense for content, Doubleclick etc) ?

http://www.independent.co.uk/news/business/analysis-and-features/google-juggernaut-rolls-on-1947316.html

“Google makes almost all its revenue through online advertising. Ads on its sites generated $4.4bn (£2.9bn), up 20 per cent year on year. Those it placed on third-party sites for clients generated $2bn (£1.3bn), up almost a fifth”

Google makes 69% of its advertising revenue from its own sites, a ratio which is rising and has been (rapidly) for several years. I’d look up the numbers, but rather like you, I can’t be bothered.

Google’s business model is “founded on a fantasy”? Even taking out all 3rd party revenue still leaves quarterly revenues of $4.4bn, rising 20% y-on-y. That’s the kind of fantasy I like.

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