Is Google Really, Really Killing the Ad Industry?

June 16, 2021

I read “Google Is Also Killing Ad Industry like Apple.” There’s a caveat after this somewhat bold headline:

[Google] promises to put an end to personalized ads starting with Android 12

The write states:

Close to 80% of its revenue comes from advertising. But with pressure from regulators and consumers, Google had no choice but to follow Apple’s lead to protect users’ privacy and data.

Okay, the Google is reacting to what seems like on going legal hassles. Is Google “like Apple”? Well, Apple has diversified its revenue stream. The hardware, the App Store, the subscription businesses, and the other bits and pieces of the company that turn a buck are more robust than Google’s model.

Yep, that’s 80 percent advertising, and it is smart. Well, sort of smart. Some of the ads we’ve have been monitoring on YouTube and our Google Web search results pages seem a bit off the mark for whoever Google thinks “I” am. We love seeing ads for discounted auto insurance, Grammarly to improve the entity’s writing, and blandishments to consume a vegan health drink. Not exactly a cohesive line up of messages, but Google thinks we watch yacht videos, hacker and stolen software videos, and search for weaponized drone manufacturers. Normal stuff for the smart Google system.

That’s the problem. The 80 percent is based on some pretty crazy real life, rules based, and human tuned systems and methods. By virtue of zero meaningful regulation, the Google has become the embodiment of online advertising. Banners, personalized, scammy, whatever Google is there.

What if users opt out of Google data collection?

What difference will that make? The Floc you crowd believes that privacy is Job 1 at the Google. The cheerleaders for the weird “rumble” or “bumble” bundle think that subscriptions are the way to go. Google believes that its solving death and smart auto technology will become big winners. Then there’s the licensing opportunity for DeepMind’s smart software. Those who aren’t keen on saying, “We’ve got the secret sauce for artificial general intelligence” are gone or heading out the door. The AI ethics negative Nellies are history as well.

The problem is the 80 percent thing.

The write up has an answer:

As predicted, Google gave in to pressure from regulators and its users to implement these changes. However, it will be interesting to see, how Google will sustain these changes let alone other third-party ad providers. But only the future will tell how will these changes affect independent and small business owners as Facebook fears. Google recently introduced FLOC (Federated Learning Of Cohorts) an alternative method to replace the third-party cookies on Chrome which makes it difficult for advertisers to track user’s web activities to serve targeted ads. This FLOC will enable interest-based advertising on the web without letting advertisers know your identity. Probably, Google’s alternate solution to the Android app’s future personalized ads will probably reminiscent of FLOC. Overall, this is a welcome change from Google.

Got it? But 80 percent of $196 billion is a lot of smart auto and smart software licensing deals. Therefore, Steve Ballmer’s one trick pony observation is proving to be accurate or at least more accurate than Mr. Ballmer’s basketball team’s free thrown shooting percentage.

Stephen E Arnold, June 16, 2021


One Response to “Is Google Really, Really Killing the Ad Industry?”

  1. Nora on September 5th, 2021 8:57 pm

    when was charlottes web cbd marketed

  • Archives

  • Recent Posts

  • Meta