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Monday, August 2, 2010

The End is Near for Google… Apparently!

Posted by @ 9:13 pm
10
  •  

googlebinAn article by Fortune Magazine recently outlined why the end is near for Google and it’s generating quite a bit of discussion.

Titled “Google: The search party is over”, the articles says that low android mobile revenue, Facebook competition and stock price decreases will see Google fail to maintain its status as one of the most world’s successful technology companies.

From the article:

The company seems unsure about how to move beyond the core search business that has brought it such massive success. Google has placed expensive bets on acquisitions, chief among them its $1.6 billion purchase of YouTube, a $3.1 billion wager on ad network DoubleClick, and more recently its $750 million purchase of mobile advertising platform AdMob. But none of those deals have yet significantly diversified Google’s $23-billion-a-year revenue stream: Google’s main focus continues to be driving people back to the search box and the ad dollars that Google collects for helping marketers reach highly targeted consumers. Even Google’s most successful new product, the Android operating system for smartphones, generates scant revenue for the company: Google gives the licenses free to mobile-phone operators to facilitate, you guessed it, searches and use of other Google services on mobile phones. And while it lets its whip-smart engineers dedicate a portion of their workdays to dreaming up the coolest products for the web, all that Googley experimentation hasn’t had a huge impact on the bottom line.

Apparently Google’s biggest downfall is the mobile and social web experience. They need to move beyond search if they want to keep up with the world’s biggest technology company – Apple. “Google is not the hot company anymore,” says Marc Benioff, CEO of Salesforce.com. “Their stock has been mostly flat for five or six years now. How can you claim to be a leader with equity performance like that? That’s starting to look like Microsoft or Yahoo. They have to get into some other place, and quickly.”

A thread at Webmaster World has been discussing the article and most forum members aren’t happy. Many can’t believe that anyone would write such an absurd article and I have to tend to agree with them.

While there are some points of merit in the article, Google is still one of the most profitable companies with some of the brightest minds in the business. I really can’t see its employees and shareholders sitting back and waiting for the end to come. No doubt they have something special up there sleeve to advance into new areas of the web, they’re just keeping it a secret from us!

What do you think about the article? Feel free to share your thoughts below.



Courtney Mills Courtney is an online marketing and communications specialist at ineedhits - a leading search engine marketing firm with over 16 years experience. Courtney has been living and breathing online marketing for over 5 years. She specializes in web and communication marketing, while providing news and opinion to online marketing communities.

View Courtney Mills's profile






Discussion (10 - comments)

Why the buzz? Google is going nowhere. They are here and no big deal, they’re not setting up a billion dollar expansion or merger. We are in a recession for God sake! We see newbie’s coming on board with profits today, but for Google to still be on top, their doing something right! Just like Toyota on top for last 12 years and finally conpetition devised a way to take them down a notch. The ploy initially has worked, but Toyota will come out of their dellima even stronger. It’s a case of the old “backfire” and we will see this with Google.

By Jim - August 3, 2010



Personally, I find it hard to believe that Google will fail any time soon. But I can see it getting into trouble if it strays too far away from it’s core business which is providing an advertising platform for advertisers.

By Jan - August 3, 2010



Not a chance… at least for now. Something would have to start a dismantling of the general public typing in “Google” when they want to look for something. When that happens, ad revenue will drop, but by then they should have a pretty good hold on the OS and Mobile OS market, even if they are not the leader forever, Google is here to stay.

By Joe - August 3, 2010



[...] via Tags: Marketing [...]

By The End is Near for Google… Apparently - August 3, 2010



Lets face it, the phrase “$23-billion-a-year revenue stream” really sort of sums it all up! I’m guessing the UK government (and quite a few others) would really like a revenue stream like that!

By Ian Beeby - August 3, 2010



Never never….Google can’t end up.
It is a earning source for millions.

By Sunny - August 3, 2010



This is a real joke! the end might come but not soon!!!!! Google still rules!!

By Kai - August 3, 2010



I think Google will fail…about 2 years after Microsoft files for bankruptcy.

What a moronic article, no not you Courtney, Fortune Magazine is just trawling controversy in a misguided attempt to drum up readers.

By Mr Bearly - August 5, 2010



One of Fortune’s most misguided articles ever.
what a joke

By Clay Cook - August 5, 2010



Of course Google isn’t going to disappear overnight – and I very much doubt that the original article suggested any such thing. But if stockmarket *perception* is that Google has lost the golden plot, then that will adversely affect its share price and pressure the management. And panicky management can end up making stupid mistakes… So don’t take this as a “The end is nigh!” prediction, but as an early grumble about Google’s future.

By Richard Lawton - August 18, 2010




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