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Actually making no profit, but at the same time not losing money is "good enough" for a company like Google. The massive amount of users allows for analyzing be
by iagooar 12y ago
Actually making no profit, but at the same time not losing money is "good enough" for a company like Google. The massive amount of users allows for analyzing behavior patterns and increasing the profile information that later on is used to improve targeted ads like adwords.
Not only this, but being able to have a larger pool of employees without losing money has its own benefits, like easily reallocating the best performing or fitting people on other, more profitable projects or urgent problems.
- fpgeek 12y agoIt's not that simple. Breaking even may be "good enough" strategically for Google, but, tactically, it is a problem for YouTube and everyone that works on it. The harder it is to concretely demonstrate YouTube's value to Google, the harder it is to make the case for investing in YouTube, rewarding employees competitively, against unwise cost-cutting and so on. Things don't fall apart overnight, but over time...