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Horace Dediu's (asymco) graph of Googles rapidly declining margins probably illustrates why Google is now resorting to this sort of thing. http://www.asymco.co
by skc 13y ago
Horace Dediu's (asymco) graph of Googles rapidly declining margins probably illustrates why Google is now resorting to this sort of thing.
http://www.asymco.com/wp-content/uploads/2013/07/Screen-Shot-2013-07-19-at-7-19-8.57.54-AM.png http://www.asymco.com/wp-content/uploads/2013/07/Screen-Shot...
And related post.
http://www.asymco.com/2013/07/19/whats-an-android-user-worth/ http://www.asymco.com/2013/07/19/whats-an-android-user-worth...
- notintokyo 13y agoAnyone have an idea what is happening to their margins by the way? Who is competing against the same ad dollars as Google (FB seems a bit different), if cost per click is going down, why?
- Bognar 13y agoThe explanation I'd heard was that more people are using mobile devices and ads are less effective there.
- Spooky23 13y agoI think they are like any other big industrial company. They build out factories (datacenters, networks, etc) based on a projection of long-term growth. Once you start missing those growth targets, it's like compounded interest... the impact of a small miss in year 1 has a big impact on the year 5 bottom line. They have a few issues IMO: - The market is saturated... how many more tiny classified ads can you sell? - The "less sophisticated" users who click on ads use Bing -- the Windows default. - There are real competitors out there... Bing, Facebook, etc. - They piss off their hardcore users too much. Google+: enough said.
- badclient 13y agoAlso, because mobile has less space for adword ads.
- awj 13y agoI would guess it's mobile/tablets. I rarely see tasteful advertising geared towards that space, and "regular" pages shown on a mobile phone force me to zoom in on content and scroll past ads.