AOL Money & Finance

Google's latest attack plan -- join with established winners

More

Kent Newsome's blog entry here made a lot of sense when I read it. Google has made a killing with Internet search and should be able to maintain that business momentum for many years to come. But with recent product releases not hitting pay dirt -- yet -- like its search business, what is Google to do to ensure it can keep growing? As I've written before, Google, while incredibly successful, still needs to expand beyond one revenue source to ensure long-term success and make sure that investors don't have to face future surprises in its business model and revenue.

Diversification is a sound strategy in any business, regardless of present success. Not that Google is anything but a success now. Its products, which I use above all the competition, are fantastic. But the fact that these products are free, but are all supported by a single revenue source, concerns me going forward.

With that said, Google has made large recent strides to partner with established and traditional media to weave its way into more advertising revenue beyond pure Internet search. This is a good diversification strategy -- advertising revenue is Google's boon right now, and I've said many times before that I think Google's aim is to become the world's largest advertising network. But I do agree with Kent on one slightly-important thing here -- when ad partners (large ones) see the loot Google is bringing in, will these companies want to keep some (or most) of it for themselves? Why, without Google's reach, these companies may not even have an advertising business in many ways -- but that won't stop greed.

Brian White has worked in various executive positions in technology and telecommunications and now focuses on editing and writing.

Reader Comments (Page 1 of 1)

Add your comments

Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments.

When you enter your name and email address, you'll be sent a link to confirm your comment, and a password. To leave another comment, just use that password.

To create a live link, simply type the URL (including http://) or email address and we will make it a live link for you. You can put up to 3 URLs in your comments. Line breaks and paragraphs are automatically converted — no need to use <p> or <br /> tags.

Symbol Lookup
IndexesChangePrice
DJIA+132.7910,450.95
NASDAQ+29.972,176.01
S&P 500+14.861,106.24

Last updated: November 23, 2009: 08:43 PM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

WalletPop Headlines