Ok. Here is my first blog. Never thought I would write a blog this way.
There were couple of thought that's just flicked my mind during the class discussion. Below is one such random thought.
Where would Google/Facebook head towards?
Although Google is a search company, the main source of revenue for Google is ad based revenue. Display of non intrusive ads on the side of the computer screen make sense. Interested consumers click on the ad links and companies pay for the number of clicks generated. Now that is non intrusive at least on a display as big as a notebook. But what happens with miniaturization of displays? Would the ads still be non-intrusive?
The trend of exponential smart phone growth, stable desktop growth and linear netbook growth shows that more and more people are shifting towards smart phones (see slide 5) . Because of the size of the mobile screen, the ad will no more remain non-intrusive (at least what I think). So will location based advertising be the only source of revenue or is there another stream that will open up?
For that matter even Facebook cannot have ads when used on mobile via mobile apps. How are they going to generate revenue? Would they (Google/Facebook) sell all our privacy information to companies just to make money? Clearly we are living in a much more dangerous world than we think we are in!!!
Other biggest source of revenue for google is youtube. Its not the adsense, but ads which you see on some of the youtube video before it start actual content. In last google conference call I heard revenue of 2 billion from those type of ads.
ReplyDeleteShould google buy hulu?
I believe that's why Google is looking for additional revenue sources and that is why it tried to buy Groupon to tap the local sales force of groupon and move away from ad revenue only.Also it is going being into Travel industry (recently they bought a company in Boston Area) to get revenue through online travel booking.I am sure in recent future (5 yrs from now) we will see less than 50% of revenue of google from ad comparing to around 75-80% now.
ReplyDeleteNarender
To address the Facebook/Google App on mobile phones issue: I think Facebook and Google recognize that having an App on a smart phone is more to keep their exposure. Regular users of Facebook and Google utilize these from a laptop/desktop so the traditional advertising is still being utilized.
ReplyDelete