
It seems at though Google is taking the flak that is has been receiving recently to heart in regards to straying from their main revenue streams to be involved with their green initiatives, the moon footage competition etc. instead of building out the revenue streams from their primary products such as search, maps, and videos.
Well let's first take a look at YouTube. This is the video wonder child who absolutely dominates the online video segment for user generated videos, but has failed to really bring in serious enough cash to justify the 1.65 billion dollar purchase price that Google paid out for the asset. Recently, they have upped the asking price for home page sponsorships, and have linked in click-to-buy features where visitors can easily obtain legal downloads of music from iTunes and Amazon when viewing a music video online. This move greatly reinforces the paradigm shift that I expect to happen with online advertising which I will get deep into in a future post.
Google Maps: This product has some real untapped value when you consider geographically targeted advertising, not only to your particular location, but perhaps locations that are seeking out for a potential vacation. For instance if you were looking at the Italy on Google maps to see what areas might be a great area to stay, local hotels could offer an advertisement along the bottom touting what they offer over the other local competition. This type of geographical targeting just makes sense for this hugely popular and effective tool, that has broadened it's reach and solidified it's lead in the handheld market as well (a la iPhone, iPod touch, Android).
Search Advertising + Adsense
Google is looking to draw more revenue from each search made both on their search engine (see: Yahoo Monopoly) as well as their syndication network known as Adsense. The adsense program in particular is what will most likely be their focusing driver in future financial quarters as Google attempts to draw more revenue from domain assets not directly under their control. And while they have pretty strict policies about what kind of Adwords prices are asked based upon the percentage of web space that is taken up by advertisements, do not be surprised if their search engine gave a preference - if even small to those sites running their Adsense content which converts well.
Sunday, October 19, 2008
Google Reaching Deep for Cashflow
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