CBS News had a segment on Google recently. An excerpt from the transcript:
Eric Schmidt, Googles 49-year-old CEO who was hired in 2001 to be the resident grown-up, says that the pool of potential advertisers is almost limitless: “Theres a lot of evidence that the companies of which Google is a member are enabling a new kind of commerce, between very small communities, people who can find each other, for whom the traditional advertising mechanisms, whether its television advertising or radio, do not serve.
“An example: a friend of mine named Peter puts his credit card in and he give us $50 [for a sponsored link]. And his wife knits a particular kind of rug. I said, ‘Call me back, give me an update.’ So Peter calls back and says, ‘Were ecstatic. For $50, we got all these customers.’ And I said, ‘Well, how many did you get?’ And he said 100. And I thought, ‘Wow, you know, thats great. What a wonderful outcome.’ And he said, ‘Theres a problem…my wife does one rug per year.’ So thats all the revenue were ever gonna get from Peter.”
But there are millions of Peters out there, and billions in potential ad revenue. The business world is just beginning to grasp the potential.