Book Review- Googled: The End of the World As We Know It
nytimes.com
nytimes.com
Google makes money by making other people's content accessible to a wide audience in the most efficient way. In most cases you bypass search engines and go straight to the sites you're interested in because you have an expectation it's worth reading most of the front page and some of the individual stories. If a site cannot manage to capture a loyal audience they have no one to blame but themselves. When the user is seeking out new information with no preferred source of the content they goto search engines because they want the most relevant results. They're not interested in going to 20 or 30 individual sites and searching these little islands of information. The old media is still convinced they can be the gatekeepers of culture and information while Google focuses on giving people what they actually want. It's pretty obvious who's going to win here.
Don't these content producers realize that there's probably more than half their traffic coming from Google? Google helps people find their stuff. How is that bad?
Google is making money from people's content. The people making the content might be making some money, too, but Google is making much more. The content producers are all using....Google Adsense, to try and turn Google traffic into money. And Google has relentlessly "smart-priced" its adsense payouts down into oblivion. So Google's scooping up content to power its index, sending people to these sites, where they click on ads that pay Google an advantageous share of the wealth. Sounds like they're making money off people's content.
I'm not sure that I want to read the book, but that was an interesting review of it. The last paragraph had me thinking about 'free' in the context of music. We've had free music before - radio. It was a lot more restricted than todays 'free' music, but it was free (beyond the initial hardware purchase). Of course there was a monetization strategy (radio = ads = physical albums sales + other revenue).
The solution for the problems today isn't a return to yesterday. But also, importantly, things of value yesterday aren't always going to be valuable today (and vice versa). Things change.
Someone always pays, though... it simply may not be the end user.
But, substantively, what does 'free' mean? When a reporter writes about a book he didn't write for a publisher he only works for likely in a freelance basis about a company who's existence drives traffic to and is the subject of the article, who values whom from what?
I mean, the value chain (if you will) goes from Google (my employer, inclsude standard disclaimers here, as I'm just chatting) crawling the web, then showing ads next to the results that lead people to click through (organically or via the ads) to an article about a book based on a number of visits to Google.
It seems to be turtles all the way down.