Google and Its Revenue Diversity
October 16, 2010
Don’t get the goose wrong. Most companies would kill for Google’s torrent of cash. There is no bank in Harrod’s Creek large enough to hold a quarter’s profits. Nevertheless I was surprised at the information in “Google’s Long-Range Projects Appear to be Paying Off.” The story explained that Google’s revenue diversification was a result of three types of ad revenue. Er, advertising revenue is advertising. With 96 percent of Google’s $30 billion over the last 12 months coming from advertising, the goose is struggling with the meaning of diversification. To me, diversification means chunky revenues from enterprise licensing, OEM deals, an IBM like solutions business, or a line of toasters. The Google wants to grow. That’s good. After more than a decade, Google is selling ads. That seems to be one stream of revenue.
Stephen E Arnold, October 16, 2010
Freebie