When you think about Google, you think about Google Search, YouTube, Gmail, and, of course, Google AdSense. Google AdSense is the primary product that has evolved Google into a world-class company, and—what some would argue—one of the greatest companies in the world. So, when the advertising markets slow down, you would expect Google to push harder, right? Try to find ways to innovate amidst pressure. So, why does Google insist on reducing the amount of advertisements displayed on the internet? The answer isn’t that difficult, at least from Google’s perspective.
This story broke around a week ago, and Saul Hansell of The New York Times discussed what Google has in mind for the future. Google’s advertising revenue was not as impressive as it could have been, and Hansell believes that this was primarily “self-inflicted.”
Saul Hansell covered a conference call that was held by Google last week:
Virtually any other company facing slow economic times would be interested in increasing the places in which it could sell ads. It [Google] certainly wouldn’t take steps to reduce them.
But Mr. Rosenberg [Google’s senior VP for product management] said that Google had no plans to increase its coverage because of its efforts to improve what it calls ”ad quality” — the idea that Google should only show ads that users actually like. Mr. Rosenberg said that the company’s co-founder, Larry Page, would like to see even fewer ads.
Sergey Brin, Google’s co-founder, questioned if Google has gone too far. He believes that the company has decreased the amount of exposure that AdSense has by too much. While he believes that the company should have more quality and better targeted advertisements, he doesn’t want these actions to contribute to Google Adsense’s potential decline.
What are your thoughts on this?