Quote:
Originally Posted by mynameisjim
Well, Google can afford to lose money on it, but for how long.
Don't forget, they only have one profitable product and everything else pretty much loses money. You can't ride that forever. I'm not saying they are in any immediate danger, but at some point they need these things to become profitable, not just dominant.
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This recession will take a long time to recover from. Companies will be going out of business while other cot their costs. Advertising on a site that can't prove it's worth money is going to find it hard to justify $750 a day.
Quote:
Originally Posted by Blazed
If video advertising ever kicks off like it was expected then things could change very quickly, is that not the reason they bought it in the first place because they saw video advertising as the future?
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Go look at the TV stations that live off advertising then think about it on Youtube. Every clip opens with an advert, an advert every 10 minutes and all on a medium used by people who there to not spend money.
Do you see the flaw in your thinking?
It might piss off more people than it encourages. Remember it has fuck all to do with traffic. It's ALL about what that traffic spends against what it costs. Could it be some at Google think traffic is king?
In good times it's a tax loss, in bad times it's a drain.