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The Google Biz Model - Strong & Healthy - Can they Sustain it?

Thread Title:
9c per search for the mighty G
Thread Url:
http://www.webpronews.com/news/ebusinessnews/wpn-45-20041208GoogleEarnsNineCentsPerSearchEngineQuery.html
Thread Description:
It's a day or 2 old and I almost missed it but it seems G's quarterly report shows they are earning just under 9c for every search.
Nice business if you can get it and G definately HAS it!

- Y! MyWeb

They're a bit ropey

In my own humble opinion, G rushed out the desktop search to keep the feel-good factor going with the shares which prevented a premature plunge in share prices but this somewhat speculative conclusion begs the question about whether they can keep it going or not. Confidence is everything. I wonder how many jittery affiliates using adwords have begun jumping ship?

By McFox at Dec 9 2004 - 17:49

The Rule of Three

Mediapost's Search Insider just published this article: The Rule of Three - It talks about the proven fact that in any given industry, most often 3 major players will emerge as that industry matures and take a roughly 75% stake in the overall market combined, leaving the left overs for small, specialist companies.

Quote:
Name any industry and, more likely than not, you will find that the three strongest, most efficient companies control 70 to 90 percent of the market. Examples of this are abundant and include "Big Threes" such as McDonalds, Burger King, Wendy's; General Mills, Kellogg, Post; and Nike, Adidas, Reebok.

Based upon years of research on hundreds of both national and local companies, the authors go on to show that the three market leaders are eventually surrounded by smaller "specialists" who successfully concentrate on niche products (such as high-end audio gear) or niche markets (like fashions for professional women). Sheth and Sisodia describe most markets as resembling a shopping mall with specialty shops anchored by large stores.

and this:

Quote:
If the Rule of Three theory holds true in the search industry, the near future will have Google becoming less innovative, despite the largest R&D budget, Microsoft evolving as the innovator, with Google copying Microsoft and Yahoo! following. Google's market share will decrease, with Yahoo! and MSN increasing theirs at Google's expense. True, Microsoft has really never taken the innovation route and as the leader in many categories, it has always been the company copying others' technology, but it is way behind Google in search, and to catch up, it may have to innovate fast with offerings Google finds difficult to replicate.

By Nick W at Dec 9 2004 - 20:48

True of desktop search

Definitely holds true for the Desktop Search they are fumbling with now. It shows a real lack of innovation.

In desktop search, Copernic leads the way; which might give a clue as to the direction Microsoft may take as they develop their own product. With their huge reach with the Windows OS and other software, I think Google will have to produce something pretty special to compete against them.

Yahoo and MSN return near identical search results; which makes me wonder if they are sharing information.

Look out Google!

By McFox at Dec 9 2004 - 23:10

I thought

microsoft was planning to base the next gen file system and windows explorer on their SQL Server technology - if that doesn't have some impact on desktop search I will be very surprised.

By Kali at Dec 9 2004 - 23:52

9 cents a click

Assuming there is truth in the rumour that Google offer up 200 million searches a day that is 18 million dollars a day. How can you run a business on that sort of money??

By Web Diversity at Dec 10 2004 - 14:09