Google has $1Billion deferred revenue in their books - money that isn't paid out because the $100 level wasn't reached, this is according to an article published in The customer collective.com. I don't know how much is credited for a click but then the no. of clicks that contributed to that $1 Billion number must be very huge even if one wants to discount some 50% of it as accidental.
The article linked claims that "advertising revenue is just not a business model - not in the long run - not for publishers - not for bloggers - and not for software publishers". The author talks about failure of ad income as a business model.
On the other side is ingeniousness of Google in making money. What a business model? Blogs are not going die and every optimistic blogger provides Google an opportunity to make money. May be one in a thousand will make money for himself but revenue from other blogs will go to Google. Even if it is treated as a deferred expenditure by Google, it still is a huge money to have in your hand as income from it would shore up profits. Every blog created increases Google's potential income with little additional captital expenditure.
I am just amazed at Google's inventive ways of making money, no complaints. Google has some interesting times ahead, the kind of times that Microsoft had to endure in the 2000's. The war between Microsoft and Google will be interesting too.
They are brilliant, aren't they?
ReplyDeleteThat is what I like it with Google- they are game to try anything: and when something works, they make money out of it.