[FoRK] NYTimes.com Article: Google' s Sale of Its Shares
Will Defy Wall St. Tradition
Gregory Alan Bolcer
gbolcer at endeavors.com
Fri Apr 30 11:54:55 PDT 2004
I think some of that 150,000 is either from Interchange,
Overture, and FAST. I know one or all three have
deals bringing their 80k+ advertisers to AskJeeves
and Google. We were working with Interchange (then
eLiberation/ePilot) to get 3rd party advertising adopted into
IM, but the project never went anywhere.
Given the surprising appeal of text messaging, I'm
wondering why Google doesn't put the same thing into the
2Billion text messages that go over IM every freakin' day.
AOL, MSN, and Yahoo really missed the boat on that one.
Their revs are amazing.
khare at alumni.caltech.edu wrote:
> Google reported that it earned $106 million on sales of
> $962 million last year. But after taking into account
> several unusual bookkeeping techniques, Google has actually
> generated much greater profits, largely from selling small
> targeted text ads tailored to the interests of the more
> than 200 million Web searches conducted through Google
> Jordan Rohan, an analyst with Schwab Soundview Capital
> Markets, calculates that in the first quarter of this year,
> Google had pretax profit margins of 59 percent.
> "That is extraordinarily profitable," Mr. Rohan said. "Very
> few companies of any sort reach those levels."
> Google's founders started the company with no clear idea
> how they would make money and they stumbled into one of the
> most potent business concepts in history. Unlike most
> advertising, which tries to interrupt and distract people,
> advertising on search engines often gives them exactly what
> they are looking for.
> And since ads on search engines are simply a few lines of
> text and links to Web sites, often purchased simply with
> nothing more than a credit card, companies that never could
> hire a Madison Avenue advertising agency have been able to
> find a way to reach a worldwide audience. Google claims
> more than 150,000 individual advertisers.
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