Google execs look ahead and see even more more from their powerful business model
By Richard Koman - April 21, 2005
I've transcribed my notes from the analyst conference call Google held today to discuss their earnings. It was a pretty interesting conversation, I must say. I believe they really care about providing great user experiences. Ultimately, I think they're mostly interested in the improvements that also allow a rich stream of data to flow back to Google, from which they can figure out better ways to sell advertising and targeted marketing. I don't think it's any more nefarious than that; but I do think it's the basis of their ability to monetize user patterns as brilliantly as they do.
OK, here's the conversation, at least the part that I managed to take notes on.
Q: Can you talk about monetizing some of the non-search products, such as Google News and Froogle?
A: We don't think about it that way. Many of our products are integrated into the main search product. These products improve our core products and the core products enhance our ability to monetize the other products.
Q: Are you going to extend the advertising content to support graphical ads/more brand-oriented ads?
A: There are a number of efforts to make advertising more graphical which will be rolled out in coming months. We're also working on doing more targeting, which is pretty minimal right now.
Q: Can you explain the increased capital expenditures (which went from $86m to $142m)?
A: We invest in technology needed to provice services at the level we do. We build very sophisticated hardware platforms to do that. Not all of that money is in computer equipment but most of it is.
Q: I know you've said you're not building a browser, but are you thinking about products that let users get at content without having to go through IE or Firefox?
A: Well, you can already do that through Google Desktop. But our goal is to solve very large user problems. You can see amazing things are going to be possible inside the browser if you look at Google Maps.
Q: [Some question about Adsense]
A: We're looking at a number of ways to extend the advertising network. We're already shipping image ads and testing targeting techniques.
Q: MSN is running on 64-bit architecture. Do you think you'll also switch to 64-bit?
A: I think architecture is invisible to users, so it's not really a competitive factor.
Q: Talk about how you'll monetize video?
A: Right now we're just collecting video, we're not distributing although we want to. We're not sure what the details are.
Q: Enhancements to advertiser support?
A: [Eric Schmidt:] For large advertisers, we have support teams and people we call maximizers, who make sure the creative really works well. We have automatic tools to submit, rank and change your advertising, so they can change what they're doing every week, day, hour, minute.
[Sergey Brin:] The system is really optimized for the middle. We do special solutions for larger advertisers. We need to achieve greater simplicity for new and smaller advertisers.
Q: Is there some intention to monetize the new Search History function (which recently came out in beta]?
A: The only intent is to deal with a real user issue. It's a great research tool. I don't think anyone has thought about advertising with respect to Search History.
Q: Any plans to institue a stock buyback plan?
A: We're focused on accumulating cash right now, so no.
Q: Have you thought about extending Google's approach and brand into offline media?
A: The way we look at questions like that is, what is the end user benefit? Our advertising model is a beautiful thing and we're certainly going to extend it as far as we can.
Q: Comment on the French news service AFP's suit against Google News?
A: We've got a number of situations where we've become an important distribution channel. Our strategy is to work with copyright holders; our goal is to make all information available and accessible while respecting the rights and needs of copyright owners.
Final comment from Sergey: We are very busy here at Google.
We're focused on end users. We're focused on making better products for end users and advertising will flow into that. This is a very powerful model.
cd1355
By Richard Koman - April 21, 2005 | Permalink
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Comments
Kevin Cimring on Steve Ballmer Warns Financial Crisis Will Impact Tech Sector
Hi Tom,
It's become widely recognised and reported now that the financial crisis is and will continue to impact the tech sector. In order to survive, new start-ups will need to define revenue models upfront and will no longer be able to rely on the old "web 2.0" approach of first launching and only then worrying about revenue strategies at a later stage. For those types of companies, VC funding will be scarce.
Kevin Cimring on The "Experiential Gap" . . . and the Growing Cosmos of Twitter Applications
Hi Tom,
I enjoyed your "Experiential" piece on Twitter, as this has been my exact experience. Initially I couldn't see what all the hype was about, but I succumbed to the wave of growing publicity and gave Twitter a try. Even then, I was a little circumspect but several weeks later and I am benefitting from Twitter immensely, in various ways. I have tried to explain Twitter to my colleagues, but they still look at me as if I'm crazy - like you say, you have to be "in it" to understand
Sabrina Horn on Thought Leader Interview: - Sabrina Horn Says "Sell Like Hell!"
Thanks Tom, it was a rare opportunity to have the time to talk and ponder so many important topics. We look forward to hosting you at our place, for an under the hood look at PR at Horn Group.
Sabrina
Tom Foremski on Silicon Valley Heads for Germany as Governor Schwarzenegger Pushes for Cebit Trade Show Alliance
Thanks Florian, I did look up Rampenfest, it's pretty funny!
http://www.youtube.com/watch?v=R2uZZzHfgOk
Florian on Silicon Valley Heads for Germany as Governor Schwarzenegger Pushes for Cebit Trade Show Alliance
Thanks Tom for this article.
I watched the video and laughed about the German accents. They reminded me of a video called rampenfest (google it :))
Cheers and greetings from Germany,
Florian
Bravia on Worth Watching: Silicon Valley Turns Out for Steve Ballmer at Churchill Club
Thanks for that video. It was great.
Matt on Worth Watching: Silicon Valley Turns Out for Steve Ballmer at Churchill Club
good stuff, thanks Tom.
Tim Cohn on GOOG Founders Could Buy All US Newspapers and Still Have $12bn
Maybe the SEC should ban shorting them along with the Yellow Pages too.
adrian Chan on The "Experiential Gap" . . . and the Growing Cosmos of Twitter Applications
Tom,
Sounds like it might be a case of "design to the rescue!" I've been expecting that one of the next waves of innovation will come in the form of design solutions to information/data problems. Visualizations, aggregation but with more compelling visual presentation layer (and thus better or at least more interesting interactions!).
The title of your piece had me thinking that the service finds doppelgangers -- twins of interest and like mind. Are they approaching that one
Tom Foremski on Silicon Valley Rocks! Charity Event for Local Schools
Yes, we should be doing a lot more for our schools. Silicon Valley area schools should be shining showcases not basket cases. Get your tickets now!
Tom Foremski on Chris Anderson's PR Blacklist Backlash - The Long Tail of Bad PR
Branko: As as journalist for nearly 25 years I got used to the fact that not all PR people know what they are doing. And the fact that I get hundreds of pitches per day and many of them are of no use to me--is just part of the job. I screen them out without a second glance. I don't know why some journalists like Chris, get their underwear in a twist because someone pitched them an inappropriate pitch...
Andrew Pass on Silicon Valley Rocks! Charity Event for Local Schools
It's great to see people doing good for children and schools!!
Branko Collin on Chris Anderson's PR Blacklist Backlash - The Long Tail of Bad PR
"My view is that part of the problem [...]"
You mentioned earlier that there's a lot of money in PR. If that's true, then the real problem is that PR has become too successful. Which is why I don't understand these hissyfits you people throw here and at Anderson's blog. Is that part of the game of Harass the Journalist? Having some extra fun by pretending not to understand Anderson?
As for the new rift between journalists and flacks, ten years ago us journalists couldn'
Jeff on Fishwrap: Changing Media and PR . . . Plus a Great Pep Talk
Thanks for linking up to our blog! Keep up the great work and let me know of any ideas how we can cross promote...
Take care!
Wallen's on Silicon Valley and Wall Street: We're Not Immune - Here's Why
Very interesting read. Those factors should have effects at different time horizon. For example, pension funds investing less in VC funds will impact start-ups in a few years while angel wealth reduction impacts seed financing today.
There are two other factors to consider. First, lower valuation levels of public companies should indirectly affect valuation levels of start-ups' funding rounds. The second is more geared towards web start-ups: such a banking crisis could translate in s
rawdawgbuffalo on FT Anger on AIG Bailout
The the vultures are circling and the fat lady aint started singin' yet
Todd Defren on Shift Happens . . . A Visit With One of My Favorite PR Companies
It was great to spend some quality time with you, Tom. Hope to catch up again the next time I am in town!
Julie Crabill on Shift Happens . . . A Visit With One of My Favorite PR Companies
Thanks for coming by, Tom, it was great to see you and hear your always insightful commentary on the media biz. Hopefully some of the things we talked about will happen - and hopefully some of the others won't. :-)
Beyondmusic on Silicon Valley and Wall Street: We're Not Immune - Here's Why
Very interesting read..
Tom Foremski on Silicon Valley and Wall Street: We're Not Immune - Here's Why
Greg: You make a fair point. Investing in startups can be incredibly profitable but only one in 20 succeed. And it all depends on which stage of investment. Angel investors hold the highest risks and can be wiped out by later stage financing.
And how will investors get their money out if the exits are closed? Granted, the exits won't be closed forever but the liquidity of markets is a key factor in continuing the cycles of investment.