What is Google? An advertising company

Posted on February 24, 2010 | 2 Comments

So says this chart:

Another great chart from CHART OF THE DAY: In Case You Had Any Doubts About Where Google’s Revenue Comes From

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2 responses to “What is Google? An advertising company”

  1. Aaron | February 24, 2010 at 11:37 pm |

    I’ve seen many people say that along the years, but I don’t understand the logic behind it. Many network tv stations used to have most of their revenues coming from advertising too, but I don’t see them as advertising companies. Movie theatres make most of their revenues from overpriced popcorn and soda. Should they be considered food companies?

    • smartpeopleiknow | February 25, 2010 at 12:23 am |

      Aaron, good counter! I might have changed my mind a few years ago, but as I see the decline of mainstream media, I think that yes, they are in the advertising business. Their major business is to sell advertising space to companies. If they can’t do that, they will go out of business. They do make money from media, but they are more about advertising.

      Actually, many advertising or marketing firms consider themselves Communications companies, so there is a blend there for media companies: they communicate directly, and support the communications of others (via ads).

      And movie houses are entertainment companies, and food is as much of the entertainment as the movie. Indeed, Silvercity has a Burger King and an arcade.

      The business of Google is to deliver the right content to people. I think that is their business: content provider. It’s what they do on YouTube as well. I can see them trying to do more of that: provide content.