Emergic: Rajesh Jain's Blog

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Google’s Money Machine

April 18th, 2007 · No Comments

Read/Write Web writes:

Google – through its text ads strategy – has managed to weave itself into the very fabric of the Web. In doing this, the company freed itself from even Internet geography and became ubiquitous. By empowering companies and individuals to publish Google ads on their sites, Google solved the unlimited supply and demand problem in one fell swoop.

So how does Google compare to Starbucks, which is a very good money making machine in the real world? The key differences between Google and Starbucks are:

* Starbucks spends money on expansion, but Google ads spread themselves;
* Starbucks spends a lot of money on maintenance, Google spends little;
* Starbucks spends money on marketing, but businesses flock to Google because it just works;
* Starbucks relies on people, Google relies on software.

These differences make Google by far the more attractive business, compared to Starbucks. To put it simply, Google has almost no friction.

Tags: Search Engines