The Changing World of Search - SES London 2008 Keynote RoundTable
I was reading searchmarketinggurus.com about the panel discussion regarding the Changing world of search and read this portion
“Kevin: Do you think that Yahoo!’s has conceded Defeat?
Bryan: Defeat no, that they ever will regain dominance, yes. Their focus is on everything else but search.
Steve: I agree, and Jerry came and spoke to us when we were there. Yahoo! has the largest display advertising server on the planet.
Bryan: They are a media company not a search company
Mike: If you take a look at Yahoo! land they are focising on social media and media, its not just about search.”
I think it is very true that search engines such as Yahoo and Google are really a “media company” not a search company. They don’t make money on search, they make money on ads just like any media company. And just like any media company, the more “eyeballs” you have, the more income you can get. In the world of internet, “eyeballs” is “pageviews”.
It is true that yahoo has bigger “pageviews” than “google” (see graph below) but how come yahoo’s share price trend is generally going down while google’s share price since 2005 is generally on the uptrend?
I strongly believe that the profitability and the potential for more profits greatly affects the shareprices. Google having a bigger, uptrend share price makes me think that Google is more profitable than Yahoo despite the fact that yahoo has bigger traffic as compared to Google. Why is this?
The genius of Google is that it does not rely only on its website assets. Think about it for a moment, Google relied heavily in “brokering” ads (the adsense program). I won’t be surprised if their income from non-google websites is higher than the income generated by google controlled websites (ie gmail.com, google.com..etc).
In general terms, the saying “user other peoples time or user other peoples money” in creating passive income was implemented by Google as “use other people’s websites”. And that’s how I think Yahoo should play the game.
[via searchmarketinggurus.com ]
Tags: goog, Google, Microsoft, msft, ses london, Yahoo, yhooRelated Stories
POSTED IN: General News, Google, Yahoo
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