Detroit Sure Understands Hollow Out and May Have Google Insight
February 7, 2020
Detroit. Interesting place. DarkCyber read “Google’s Cash Cow Search Business Is Being ‘Hollowed Out’.” If there is one city whose residents and businesses understand the concept, it is probably Detroit.
DarkCyber noted this statement in the write up:
“This hollowing out of search is real,” Mark Shmulik, an analyst at Sanford C. Bernstein, wrote in a note to investors after the results. To maintain growth at even this lower level, Google will have to generate more revenue from its Maps service, image search and shopping search ads, he said.
Why is this an issue? The article states:
Google search is one of the most profitable businesses ever created, helping the company amass a cash hoard of more than $100 billion. It took Google from a garage in Silicon Valley to a trillion-dollar giant that dominates digital advertising, online video, maps and email.
The report points out:
Google can only stuff so many ads onto its website without lowering the quality of search results. On mobile phones, ads often fill the entire screen, forcing users to scroll down if they want to see free listings.
What’s the problem? Mobile search is booming. Yep, but peak mobile may be approaching.
Good points and from Detroit.
Stephen E Arnold, February 7, 2020
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