I’m here talking with Pete Flint, CEO of Trulia, a real estate search engine, and I just told him that Henry Blodgett was wrong and I was right. Pete agrees.
But, Henry is sticking to his guns.
Truth is that Google is the new Yellow Pages. If you aren’t advertising on Google you simply aren’t in business because most searchers who are looking for things like “San Francisco Real Estate” are using Google. That’s not me saying that, it’s Pete. He’s showing me his referer logs, and they definitely show that Google sends more traffic his way than any other search engine.
Anyway, I believe Henry is wrong. I think Google is still gaining strength in the advertising market when compared to Yahoo and Microsoft. With YouTube entering the picture Google is positioned to gain even more.
There’s still lots of businesses out there who don’t realize that Google is the new Yellow Pages. But, as stories like what Pete just told me get around, more businesses will start advertising on Google.
To underscore that. Reuters reports that Google’s growth rate is TWICE that of eBay, Yahoo, or Microsoft’s growth rate. Translation: Google is outrunning any softness that might be in the marketplace (at least in the short term) through its growth. That’ll continue unless the economy takes a turn for the worse (and, according to every number on CNBC lately, shows signs of picking up, not weakening further).
Now, yeah, Yahoo and Microsoft are coming out with advertising systems that act a lot like Google’s does, but it’s going to be hard for those search services to convince new advertisers that the hottest traffic is there.
Pete certainly doesn’t believe that Google is losing any share to Yahoo and Microsoft.
Translation: Henry is wrong. He’ll continue to be wrong. As long as the economy doesn’t get hit hard by something none of us are forseeing.
Oh, and Steve Rubel, you are wrong too.
Disclaimer: I don’t own shares or have any interest in any of the big three search and advertising companies.
UPDATE: Om Malik agrees with me and takes a subtle potshot at those who bought into the Blackfriars’ report, as Rubel did.
Scobleizer 
Google are going to continue to be massive….I think that Google are in an unprecedented position of power and will continue from strength to strength
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Google are going to continue to be massive….I think that Google are in an unprecedented position of power and will continue from strength to strength
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Which part do you disagree with – the state of the overall industry or startup dependancy? If Google’s grabbing a lot of the share, what’s left for the startups?
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Which part do you disagree with – the state of the overall industry or startup dependancy? If Google’s grabbing a lot of the share, what’s left for the startups?
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I know you have a lot of blogs to read in your Google Reader, but don’t press the ‘j’ key so fast. Steve didn’t say Google wasn’t growing, just that the overall market is shrinking and startups will get hurt.
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I know you have a lot of blogs to read in your Google Reader, but don’t press the ‘j’ key so fast. Steve didn’t say Google wasn’t growing, just that the overall market is shrinking and startups will get hurt.
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Steve: many of the startups I know have Google ads and/or get much of their revenue from Google (like Flock, Maxthon, and Mozilla foundation, who get the majority of their revenues from Google). So, if Google’s share is increasing, so is the amount of money out there that startups are getting.
I also disagree with your overall industry outlook. Online advertising is increasing, not decreasing, and Google is also increasing share.
Jack: but that’s clearly wrong. Online advertising spending went up 20% this year according to CNBC.
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Steve: many of the startups I know have Google ads and/or get much of their revenue from Google (like Flock, Maxthon, and Mozilla foundation, who get the majority of their revenues from Google). So, if Google’s share is increasing, so is the amount of money out there that startups are getting.
I also disagree with your overall industry outlook. Online advertising is increasing, not decreasing, and Google is also increasing share.
Jack: but that’s clearly wrong. Online advertising spending went up 20% this year according to CNBC.
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With the latest move on YouTube, what do you think will be the next big takeover bid made by Google?
Thanks!
Stewart
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With the latest move on YouTube, what do you think will be the next big takeover bid made by Google?
Thanks!
Stewart
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Did “Google prove advertising industry is quite robust” or only that their own advertising biz is robust? If only Google is getting the money (which you say over and over), that doesn’t imply a “robust” industry. A “robust” industry is one where many players are getting rich, not just one.
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Did “Google prove advertising industry is quite robust” or only that their own advertising biz is robust? If only Google is getting the money (which you say over and over), that doesn’t imply a “robust” industry. A “robust” industry is one where many players are getting rich, not just one.
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Steve Rubel – silent on fake PR blogs – pledges troth to employer over blog – simply not credible any more. End of.
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Steve Rubel – silent on fake PR blogs – pledges troth to employer over blog – simply not credible any more. End of.
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Bat: really? So the Microsoft/Intel industry wasn’t a robust one? I think you should go back and study your economics. That created more wealth than any combination previously.
Or, go back to the railroads. That wasn’t a “robust industry?” It certainly was.
Shareholders love monopolies.
But, the total dollar spend on online advertising is going up. Google is just taking more and more share of that increasingly large pie. They did that by turning down the ad dollars that came from banner ads. Billions of dollars have been spent on banner ads and Google turned it all down and are now reaping the rewards because the usage model changed. Hurray for them!
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Bat: really? So the Microsoft/Intel industry wasn’t a robust one? I think you should go back and study your economics. That created more wealth than any combination previously.
Or, go back to the railroads. That wasn’t a “robust industry?” It certainly was.
Shareholders love monopolies.
But, the total dollar spend on online advertising is going up. Google is just taking more and more share of that increasingly large pie. They did that by turning down the ad dollars that came from banner ads. Billions of dollars have been spent on banner ads and Google turned it all down and are now reaping the rewards because the usage model changed. Hurray for them!
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Any breakdown on how much they earned though advertising in their search engine and how much using their other applications like google maps etc??
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Any breakdown on how much they earned though advertising in their search engine and how much using their other applications like google maps etc??
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@9. I haven’t seen it but my guess would be: search engine ad rev: 99.9999999999999%, all other google applications. .00000000000000001%
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@9. I haven’t seen it but my guess would be: search engine ad rev: 99.9999999999999%, all other google applications. .00000000000000001%
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It is interesting to compare Google’s market cap ($140bn) next to that of the largest Yellow Pages publisher Yell Group ($8bn) The total Yellow Pages market place is estimated to be worth $45bn/annum. Obviously Google’s overheads are tiny in relation to the traditional Yellow Pages publishers; but it does give you some idea of the total size of the market place they are fighting over.
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It is interesting to compare Google’s market cap ($140bn) next to that of the largest Yellow Pages publisher Yell Group ($8bn) The total Yellow Pages market place is estimated to be worth $45bn/annum. Obviously Google’s overheads are tiny in relation to the traditional Yellow Pages publishers; but it does give you some idea of the total size of the market place they are fighting over.
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