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Google executives have privately told the board that revenue will soar from less than $300 million in 2002 to $750 million or more this year, with gross profit margins of 30 percent
BTW without making any recent changes, my AdWords expenditure hit an all time high today - almost 20% more than a typical monday. Perhaps more people are not finding what they seek in the regular SERP.
-Hanlon's Razor
While I do strongly suspect Google is doing this to increase Adword sales, the theory that Google just screwed up the algo and blew it does tend to explain a lot. Consider Windows. Microsoft has no economic incentive to make Windows crash a lot. This hasn't stopped this from being so. ;)
While I do strongly suspect Google is doing this to increase Adword sales, the theory that Google just screwed up the algo and blew it does tend to explain a lot. Consider Windows. Microsoft has no economic incentive to make Windows crash a lot. This hasn't stopped this from being so. ;)
On the other hand, Microsoft has no economic incentive to prevent Windows from crashing a lot. Face it: they're a marketing company, and they've figured out how to win either way (monopoly).
Google does not have a monopoly. There are other players out there who are ready and quite willing to take not only their users but their Adwords revenue too. If Google loses searcher market share, Adwords goes down the drain with it.
So I can't give much credence to conspiracy theories. (Actually, this seems completely consistent with a major code change -- hey, this stuff happens. I just hope the end result was worth the effort.)
fixed my spelling -- silly me
[edited by: berli at 4:09 am (utc) on May 20, 2003]
To the original poster i just want to remind us all that the data reported in the google's revenue article was published a LONG time before dominic hit the scene.
An index that provides great value for USERS is absolutely essential for adword sales. No good index - no page views - no adword views - no advertisers.
Like to think Google learned from the mistakes of others.