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> I don’t see any mention in this article of what seems like the most obvious way to split up Google, separating their search and ad businesses. What would be

> I don’t see any mention in this article of what seems like the most obvious way to split up Google, separating their search and ad businesses. What would be the revenue model for their search then?

JumpCrisscross 7y ago
> What would be the revenue model for their search then? I read OP's proposal as separating Google search business (search + search ads) from its third-party ad business (e.g. AdSense).
samscully 7y ago
The ad business would pay the search business for ad placement. The search business would also be free to auction ad space to other providers.
- epicide 7y ago
  > The search business would also be free to auction ad space to other providers. Doesn't that make them an ad business?
  - ailideex 7y ago
    I agree, to me it seems like that really does not change anything except it mandates one more middle man.
    - GordonS 7y ago
      Yep, it just makes what likely already operates as an "internal" customer an "external" one. Not really sure how it helps with competition?
      - iainmerrick 7y ago
        That’s exactly the point, to make that internal customer external, and make any special access or APIs they have available to competitors on an equal footing.
  - echelon 7y ago
    It makes them like the New York Times, which sells ad real estate. It's a much different business.
    - ailideex 7y ago
      Is that not what google's ad business does already? Not sure where the difference is actually. Basically the request seems to be: Pre Split: - Company A - provides: search - sells: ad space Post Split: - Company A - provides: search - sells: ad space - Company B - (re-)sells: ad space Seems like this solves nothing and can be repeated ad infinitum. There are many companies which already does what Company B does - what exactly will this fix?
      - iainmerrick 7y ago
        Here’s a question that may clarify: who runs the ad auction? If post-split that’s company B, I’d argue that is a genuinely new structure with some different properties. Company A would still have an ads team to manage the integration, but they would explicitly outsource ad selection to (potentially) multiple partner companies.
- bduerst 7y ago
  >The ad business would pay the search business for ad placement. The search business would also be free to auction ad space to other providers. What you're describing is exactly what Google ads are today.

JumpCrisscross 7y ago

> What would be the revenue model for their search then? I read OP's proposal as separating Google search business (search + search ads) from its third-party ad business (e.g. AdSense).

samscully 7y ago

The ad business would pay the search business for ad placement. The search business would also be free to auction ad space to other providers.

epicide 7y ago
> The search business would also be free to auction ad space to other providers. Doesn't that make them an ad business?
- ailideex 7y ago
  I agree, to me it seems like that really does not change anything except it mandates one more middle man.
  - GordonS 7y ago
    Yep, it just makes what likely already operates as an "internal" customer an "external" one. Not really sure how it helps with competition?
    - iainmerrick 7y ago
      That’s exactly the point, to make that internal customer external, and make any special access or APIs they have available to competitors on an equal footing.
- echelon 7y ago
  It makes them like the New York Times, which sells ad real estate. It's a much different business.
  - ailideex 7y ago
    Is that not what google's ad business does already? Not sure where the difference is actually. Basically the request seems to be: Pre Split: - Company A - provides: search - sells: ad space Post Split: - Company A - provides: search - sells: ad space - Company B - (re-)sells: ad space Seems like this solves nothing and can be repeated ad infinitum. There are many companies which already does what Company B does - what exactly will this fix?
    - iainmerrick 7y ago
      Here’s a question that may clarify: who runs the ad auction? If post-split that’s company B, I’d argue that is a genuinely new structure with some different properties. Company A would still have an ads team to manage the integration, but they would explicitly outsource ad selection to (potentially) multiple partner companies.
bduerst 7y ago
>The ad business would pay the search business for ad placement. The search business would also be free to auction ad space to other providers. What you're describing is exactly what Google ads are today.