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Ed Lee
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10 months ago
in I can has bizness model? on Mathew's comments
interesting - i would've thought that a good business model for these guys would be to have their own in-house ad department that would be able to produce ad-creative that are in keeping with the rest of the site.
not only do you sell the space, but you sell what's on the space...
not only do you sell the space, but you sell what's on the space...
1 reply
mathewi
That's a great idea, Ed.
1 year ago
in Google brings the hurt to comScore on Mathew's comments
something that i hardly ever seen mentioned is that google's "devotion to free services" is not because of the huge pile of cash it generates on an hourly basis. on the contrary, the majority of services google releases or buys is geared to increasing the size of the pile.
for instance:
if i'm an e-commerce Web site owner, and i sign up for free analytics, i can put a price on my traffic, based on conversions. when traffic has a price, i'm now more likely to try to buy traffic using AdWords
the more blogs there are in the world (blogger.com), the more content needs to be indexed and the more competition there is around key words. now as a marketer, in order to ensure i'm top of the pile when it comes to people searching for my key terms, i buy them.
similarly, the more marketers know about the Web, and its metric driven effectiveness, the more they will spend on AdWords to attract new users and new customers.
ed
for instance:
if i'm an e-commerce Web site owner, and i sign up for free analytics, i can put a price on my traffic, based on conversions. when traffic has a price, i'm now more likely to try to buy traffic using AdWords
the more blogs there are in the world (blogger.com), the more content needs to be indexed and the more competition there is around key words. now as a marketer, in order to ensure i'm top of the pile when it comes to people searching for my key terms, i buy them.
similarly, the more marketers know about the Web, and its metric driven effectiveness, the more they will spend on AdWords to attract new users and new customers.
ed
1 reply
mathewi
That's a good point, Ed -- and something I meant to note in my post.
It's not just the fact that Google *can* offer things for free, but
also that offering those things produces demand for other things
(namely advertising) that the company makes money on. In a lot of
ways, it's an example of Mike Masnick's "economics of abundance"
theory -- give away the things that are abundant and free (or can be
made abundant and free), and use that to drive demand for things that
aren't.
It's not just the fact that Google *can* offer things for free, but
also that offering those things produces demand for other things
(namely advertising) that the company makes money on. In a lot of
ways, it's an example of Mike Masnick's "economics of abundance"
theory -- give away the things that are abundant and free (or can be
made abundant and free), and use that to drive demand for things that
aren't.
