Monday, March 01, 2010

With 95% of it's profit coming from Adwords is Google still a one trick pony?

Don't get me wrong, I love Google and I know they are diversifying and investing in new products and services. But none have been the cash cow that AdWords has been or shows potential to generate that kind of revenue.
I think the Android OS has a lot of potential, but I'm not ready to pitch my IPhone yet. Google Apps and cloud services are making money, but will it become mainstream with all the privacy issues that Google has been facing? Another concern is the shrinking profit margin as these services become even more of a commodity.
Google search is here to stay and it is a free service they offer, the advertising they show on the top and down the right side of the page is where they make money. Will this increase? Stay the same? or drop?
More and more web sites are learning and adopting organic search. I know I don't click on search ad unless it is something very hard to find. Before our site ranked organically we used AdWords and yes they do work and are great if your just starting out. But with organic search if done right you will get a much higher return on investment. The key element is relevance to what end users are looking for. Remember Google is a research tool not an e commerce tool although if you are smart you can do that by providing relevant informant ion and inform your end users.

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