30 December 2008
Can Google Survive Its Success?
As I understand (admittedly dimly) Google's success is based on an algorithm that does a particularly good job ranking search results based upon how many other web pages link to it. But what happens now that no one finds anything on the web other than through Google? Now Google's algorithm must basically be to rank pages in the order that Google ranks them. I understand that now they're concentrating on getting every web page in the world into their servers multiple times, but that seems like a pretty low-return game.
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Here's another aspect of their success. Google pays sites to post Google ads, and collects money from people who create the ads. When an ad is clicked on on a host site, the add buyer is debited immediately, but the ad seller has to accumulate $100 of credits before he can cash them in. I've had Google Adsense on the DD for two years, and I have $35 in credits. So that's $35 that Google has been able to invest and will continue to derive investment revenue from for at least the next 5 years at the current hit rate for the DD.
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