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Shares of Web Search leader Google Inc. (GOOG.O: Quote, Profile, Research) on Tuesday surged past the highly anticipated $500 milestone for the first time, continuing its strong climb since it became public company in August 2004.
The stock was last up 2 percent at $505.15 and ranked as the biggest advancer on the Nasdaq.
Google charges ahead, tops $500 mark [today.reuters.com]
You are right Google is a one trick pony at the moment, but it is being rode hard and put up wet. Give them time, what you are seeing as "free" right now will be monetized sometime in the near future.
To see example, type in very popular, single keyword: "internet".
The 95% of the visitors typing above keyword are looking for the internet access providers. What they get are results that are totally NOT RELEVANT TO THEM and have to use "sponsored links" which in this case are 100% relevant, thanks to webmasters who know better what people are looking for!
Now, do you think G does not know about it?
Of course they know about it. It is as it should be. The organic serps are more informational than commercial now. For instance, we use adwords...we pay to play. A user types in the type of widgets we sell and above the fold and down the side are websites that sell our widgets. The top 10 organic results include only two of the widget sellers...ours and our main competitor (our two websites are both over 12 years old). The rest of the results are informational sites about our widgets to better inform the potential customer on how to use them, what qualities to look for in their purchasing decision, etc.
This is as it should be. You cannot expect Google to give you a free ride on its trick pony by including you at the top of the organic serps. If a product or service cannot afford to have an advertising budget...then it is time to go back to the drawing board.
Paying to play assures us the search exposure we need to achieve financial stability and growth. Before adwords we only employed 11 people, now we employ over 50...and our profits grew accordingly with employment growth. Google's one trick pony is the best bargain around if you do your research and implement a sound strategy.
Give them time, what you are seeing as "free" right now will be monetized sometime in the near future
That's what I was saying in the post that you wanted me to read a paper about. They *need* to monetize or the crash could be hard and fast.
Media fortunes have been built on advertising revenue, and there are plenty of other megabusinesses that earn all or nearly all of their profits from a single type of product or service (e.g., salted snacks, door-to-door delivery, cruise travel, or hotels)
Absolutely true but the big difference is the speed at which things change in the online world. It takes a long time and a lot of money to build a cruise ship or a hotel etc. The Internet world is ironically much smaller yet much bigger as everything is a script and click away.
Don't get me wrong though, Google has a good thing going right now without a doubt but they must find something other than AdWords advertisers to sustain the growth indefinitely. The good old days of placing an ad in the Yellow Pages and having it there for a year at a set price are long gone and advertisers can shift ad spend as fast as a script can move a campaign from one place to another.
The other thing they need to watch out for is what I saw first hand with the little bit of code my machine caught that foiled their cash register. The bigger Google gets the more people will want to do them harm with software just because it is easy to do just as they do with Microsoft today.
Of course they know about it. It is as it should be. The organic serps are more informational than commercial now
Why is it as it should be? The natural index is supposed to deliver the best results and I haven't heard Google say it should be the best *informational* results.
Google's one trick pony is the best bargain around if you do your research and implement a sound strategy
Best bargain? That depends on many things but it's been my experience that in general MSN coverts better than Google and Yahoo! paid inclusion converts the best in nearly all cases. And before the question comes up...I've been in the business for many years and have helped push many types of campaigns through most engines starting years before Google even existed so while I certainly don't know everything what I know is based on some experience :-)
Best bargain? That depends on many things but it's been my experience that in general MSN coverts better than Google and Yahoo! paid inclusion converts the best in nearly all cases
The conversion rates for products and services are different depending on the target market. For instance we have one product that converts better on MSN than Google because as far as I can figure MSN users tend to be baby boomers and older...while another product we have does better on Google as it naturally appeals to a younger crowd. Of course this is antedotal evidence, but I think we all have different experiences depending on what we are selling or doing. In every case YSM is the most expensive for us with the least ROI.
Maybe I should have stated PPC/CPM is the best advertising bargain around...that is what I really mean't. I wasn't trying to say that Google is a better bargain than YSM or Adcenter. Sometimes it is sometimes it isn't.