Google advertisements

I remain puzzled by the success of Google’s business model.  Obviously, I don’t have the makings of a good businessman, because Google is fantastically successful, with a torrential positive cashflow and high profits.  Google seems to have more of a right to the name Amazon than, given the relatively meagre profitability of the online bookstore cum emporium, despite it’s annual revenue, and should be called, say, Thames, a not all that impressive river.

Google gets its money from advertising, ads that Internet users click on after making a search.  I ran a very focused ad campaign for a specialized product related to my work, and it garnered a decent response, but if I had done a search for that product, I don’t think I would have clicked on the ads it presented.  I don’t think I have ever clicked on a Google ad, except for a few instances when I experimented to see just what they would turn up.  Once again, I am obviously not a judge of how people will behave.

My sense of the advertisements that appear on the Google sidebar is that they are generally vague, tangentially related to my search, and never better results than what I turn up with my Google search itself.  Why would I waste time with them?  When newspapers and magazines purchase advertising, they pay up front, and do so because they know their material will be seen by readers, and possibly read.  Some magazines, e.g., fashion publications, are all  about the ads.  Pay-per-click ads generate revenue only when browsing people click on them.  Why do they click?  But click they do!

So…I come to this rather depressing prospect.  Google is reaping megabucks off of billions of clicks by vast millions of users who are clicking on ads that are of limited value simply on the hope, the misconception, the belief, reflex action? of responding to an advert.  Their business model is built on the bedrock of consumer acculteration.  Countless people wasting countless hours in pointless activity is making Google rich.  People love to shop, they love advertisements, and they are happy to be led down the primrose path by ads that promise much and deliver little.  Why not, it’s all free!  We pay only with our time and attention!

3 Responses to Google advertisements

  1. Ducky's here says:

    You’ve pretty much got it. I qustion how much actual commerce it produces.

  2. visnow77 says:

    The thing about the internet is, everything is trackable. I would bet that those ads do generate sales. The keys are quantity and targeting. When I was in marketing for a publisher in pre-Internet days, it turned out a direct mail campaign only needed to generate responses from 1 percent of its recipients in order to be profitable. So if you send out 1000 flyers, and you get 10 sales, you make money. For Internet ads, which cost pennies, can hit millions of prospects, and are targeted automatically by keywords, if only a small percentage of users click on the ads, profit results. And desire is a strong motivator.

    I used to think I would never click on those ads, but when they pop up on my gmail account, I’m so amused and often curious, that I do occasionally click on something. I don’t think I’ve actually bought anything, but I did get an idea for an article from one link.

    • lichanos says:

      Of course, you are quite right. Millions view, thousands click, a few buy…Even if it doesn’t break even, the loss is probably minor, and they get to seem with it.

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