wheel - 5:37 pm on May 31, 2011 (gmt 0)
Is someone getting desperate about their ad revenue growth?
Google's got a looming problem. Investors I believe are expecting not just profits, but excessive growth.
There's no place Google's ever managed to make any money other than adwords. So other products aren't going to do it.
There's about a dozen ad spaces on the front page. They're full for just about every search.
So how are you going to maintain 10% growth next year? Charge more from the same thing. That's what they're doing.
And thanks to their closed policy on everything, nobody ever really knows who's paying what - we just see money going in to Google and that's it. If they decide to bump the revenue up by 10% by doing something that people would scream about if they knew - who would actually know?
But that's the only option to them at the moment. Give it max 5 years - this model can't continue. (well, it can continue with profit, but it can't continue with growth).