Monday 29 April 2019

Google’s advertising business

The data for Google’s advertising business was disappointing and drove the after-market price down by 7 percent. The strong results from Facebook had increased people’s expectations for the tech giant before the release. I always have some questions about Google, though these questions can be stupid and irrelevant, given I have no industry experience.
The search engine is able to generate profits for advertising. The companies which pay Google for advertising their companies are listed above the search results when relavent words or phrases are searched. However, for some influential and well-known companies, does advertising on Google make sense? When we search the word, ‘Facebook”, Facebook will definitely be displayed on the top of the search result, and there will likely be an advertise from Facebook just above the search result. Then is there a point for Facebook to pay Google for advertising since it is already on the top of the list? Of course, there are some cases where Facebook wants Google users to see its name. For example, when people search “social media”, Facebook wants its name on the top of the advertising list.
In addition to advertising via Google, how much advertise do those influential and well-known need to let people see? Do they really need such public attention when they cannot be ignored in the market?

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