How does Google make money?


Recently Google held a press day, which has been widely covered by MSM, bloggers and others. There exists reams and reams of data on Google from non-Googlers to find out more about this great little start-up that has become increasingly tight-lipped on many things. We know all kinds of fluff data about Google, but that is it…

The LA Times in an article titled The One Bit of Google Withholds: How it Works (May 22, 2006) makes some interesting points. This is what it says/asks:

“Google’s unwillingness to disclose little more than the legally required basics of how it does what it does — and where it’s headed — has left advertisers puzzled, partners confused, competitors nervous and investors frustrated… All search companies are secretive. But as the largest and most idiosyncratic, Google has drawn the most scrutiny…So Google has kept its ranking formula — which the company says includes more than 200 signals — more secret than the recipe for Coca-Cola….All that depends on imponderably complex mathematical formulas, a sophisticated accounting system, an aloof corporate culture and a growth strategy secret to all but the upper echelon of the company — making Google one of the most mysterious companies of this century or last.”

I guess the pressure is mounting on Google to become more transparent, and as the LA Times article points out people  want to know on how it made over $6 billion in revenue last year.

What do you say?

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s