Google’s revenue model is largely tied to the sales of ads. Newspaper’s revenue model is also mainly tied to selling ads.

It works quite simple: the more people either attract, the more money they might make.

The Wall Street Journal printed a very interesting story today, “Google This: U.K. Papers Vie to Buy Search Terms” by Aaron O. Patrick.

This story reveals the tactics followed by some newspapers to get more readers: Google Adwords.

At first, the idea of advertising to increase “circulation” to generate more income from advertising seemed a little silly. But at the end of the day, if their ventures are net positive, then they should keep at it.

More and more I thought about it, the more sense it made. After all, I have seen ads on one TV network for shows in another TV network. How is the newspapers’ strategy any different?

Anyway, the real issue here is Google. It is becoming so large and powerful, that other companies with similar revenue models have to purchase space in order to stay in business.

Google has about 50% of the search market. And most people start their web experiences with a search. Over 90% of the people searching don’t make it past the first page of search results, so it makes good sense for advertisers to purchase space on that first page.

So, it seems, Google has wedged itself between eyeballs and content. I wonder if there is a way to wedge another revenue source between eyeballs and Google. Start thinking!

Labels: advertising, Google, Online Advertising

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posted by Andres Zapata @ 3:24 PM