Quote:
Originally Posted by Curtis2011  I am not saying add more ads to Google or add spam to it.
I am saying, instead of having the top 1 slot of an Adsense ad be an ad for a product from a different company, if it was an ad for a Google-made product, then Google could increase their revenue by millions and eventually billions.
My suggestion would not change Google at all. It would merely place an ad for a Google-manufactured product above the ads for non-Google-manufactured products.
The only problem is that Google is not at all experienced with physical product markets. Only software and technology. If they were willing to expand in the direction of manufacturing/shipping, they could make billions with very low marketing expenses. |
Curtis,
You're a little off.
Keep in mind that when you talk about maximizing profit at a company, the real goal is to maximize profit for the owners. A company might have higher end profits by soliciting venture capital and expanding-but this doesn't mean that their owners will benefit.
One major consideration in Business is not just maximizing profit, but maximizing profit
margins and return on investment. As a publicly owned company, to make money for its owners, Google's goal is to achieve the highest possible ROI with the cash they already have. Not to mention that Google has extremely high profit margins, since they have very few costs. On the other hand, profit margins for manufacturing companies are extremely low on average.
You should also know that the top ad spot is enormously valuable. Do you realize that Google would get a lot less revenue from advertisers if they kept the top spot for themselves?
So in effect, manufacturing and marketing their own products would be trading in a high ROI channel for a low ROI channel.