Chao Lam

Working on the next small things …

Google’s success has seeds of its own destruction?

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Fred Wilson has an interesting take on the oft-lamented sentiment that we are just in the first few innings of search. Even Google likes to say it will take hundreds of years to accomplish their mission.

Wilson’s blog entry made me recall an earlier blog entry on topix.net which speculated that “search pages [on Yahoo] earn $50 CPM while non-search pages for Yahoo earn an average of about $4 CPM site wide.

This got me thinking that the better search gets, the more Google’s current business model will suffer (yes, suffer is hardly the right word). Put simply, users click on Google’s AdWords today mainly because their organic search results are often not as good.

This doesn’t necessarily spell doom for Google, of course. It will take a long time before a search engine can consistently provide what the user wants exactly. And, of course, GOOG can and probably will find significant new sources of revenue.

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Written by Chao

March 1, 2006 at 12:33 am

Posted in Uncategorized

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