Wednesday, December 21, 2005

 

Google's Long Tail

Here is a very interesting theory about Google's strategy in general to reach out and empower anyone who could possibly become a publisher. The end product would be a new base to generate cash flow from.

Quote:
To me it's obvious that The Big G is all about the Long T - the Long Tail that is. They recognize that they win best by aggregating services for the niches and then building enough of a base to generate cash flow. It's all very smart and it's indicative of why Google will dominate all of its competitors - including AOL, Yahoo and Microsoft. Those guys all have a short tail focus (e.g. securing big brand name advertisers). It's too difficult to walk away from this revenue stream to aggregate niches.


It is always a clever strategy to avoid alienating a potential audience. Google perform this quite well in my opinion.

Sunday, December 18, 2005

 

Google to buy 5% of AOL for $1 billion and other treats

Microsoft had been courting AOL now for quite sometime but it looks to have been hype in order to get a great deal from Google. AOL have now got that great deal. It will see Google pay $1 billion for a 5% stake. The deal will strengthen the advertising partnership between Google and their biggest customer by allowing AOL to sell advertising on behalf of Google and also will see AOL image advertisements incorporated into Google's search results pages. These image advertisements will be the first time Google have allowed this. Google's stock price rose on the news.

Full story here: http://www.siliconvalley.com/mld/siliconvalley/13426237.htm

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