Whitey - 11:27 am on Jul 10, 2011 (gmt 0)
people who follow this kind of thing can see that there are now plenty of ways of getting onto the 1st page without having to build up a quality site
The people Google is chasing include folks who are often unsophisticated. To capture them requires a variety of strategic techniques, which will damage Adwords in the short term occassionally, but reward Google in the long run.
Without doubt this is a high level strategy, and I don't buy the argument that product divisions within Google don't respond to commercial strategic guidelines.
But, as you say , Google is looking at the bigger picture. Google is looking at expanding's it's media real estate, so when you look at a page, imagine one day it will be full of paid options and contain all the information organic listings could offer in most e-commerce business verticals, in as many accessable ways as Google can compete in.
Google's business has an insatiable appetite and would gobble up half the planet if it could.
Why did google acquire ITA travel software company?
Possibly to position at the strongest possible market distribution points a tool that they could invest in so strongly that no other competitor would be able to equal them. This is a trillion dollar market, and flowing a little bit of it via Google might help their business, to put it politely. But the point is dominance , and organic listings will be weak in the face of this.