dsforeman - 4:54 am on Aug 25, 2005 (gmt 0) [edited by: tedster at 4:27 am (utc) on Feb. 18, 2009]
Fact is G has nothing to loose here. It's all play money. MSFT has burned billions on X box for no reason. They invest in stupid #*$! they do not innovate. Google is Like
Apple they #*$! with ideas, some work some don't. Steve Jobs has has a few hits swinging for the fences, having fun with technology, that's all it takes. I think these guys are much smarter than YHOO or MSFT or Comcast and certainly a notch above VZ SBC and AOL. I don't know what they have up thier sleeve but I will certainly allow these guys a false start or two before they hit thier next home run. The question I have to ask as an investor. Would I use the technology. Would I use free Wifi from Google? Absolutely. Would Google make money from it? I don't know but it fits a hell of alot better with thier strategy than X box fits with MSFT or Disney fit with Comcast. Does Google offer content, no they do not, they only orgnize, catalogue i it and deliver it. Free wifi would make information more accessible from any location, would make any business more prone to advertise to targeted locations. Would a resteraunt want to buy adwords on a wifi hub that serves the 10 block radius around it? Would a car dealship, a hair salon, a Starbucks. I use adwords to drive sales volumes at local business up by 100% and drive down lead costs. It's targeted advertising. to the extent that I can target more accurately I will do it. I will run ads for Philadelphia Lawyers in Philadlephia. I don't want to show those ads to Washington D.C. or San Francisco. If google gives me more control to geo target I will not only do it I will bid higher for the keywords. If I know my ads are reaching low income people who use to be on dial up and used to use a phone book but now use a google wifi appliance (phone) I will bid even higher. As and advertiser I want to segment my market, target my customer and deliver the exact ad that they want to see. If google gives me that tool I will use it and pay more for it than a scatter shot approach. Even if Google only captures low income people who cannot afford ad free broad band this is a segment that I want to target. Not everyone on the planet can part with 40 bucks a month to search for consumer goods and services. Yellow pages are Free aren't they? I don't hear anyone wonder why Verizon spends so much time and money delivering free Yellow Pages. Why not charge for Yellow pages? Because that would be retarded. The more yellow pages in home the higher your ads sell for. 18 million to set up wifi for 2 million people thats 9 bucks a person. If it costs 2 million a year to maintain that's a buck a person. Each person spends at least 10K a year on local consumer goods and services.
[edited by: tedster at 4:27 am (utc) on Feb. 18, 2009]