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Technology Stocks : Google - Moderated - Information and discussion Thread
GOOG 1,347-0.3%Dec 13 9:59 AM EST

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To: Lizzie Tudor who wrote (325)6/11/2007 12:24:15 AM
From: Lizzie Tudor  Read Replies (1) of 348
 
another tremendous post on WMW about the June update- of course this guy applauds it but that I not why I am posting it, he has presented a lot of good info here.

As a publisher on the content network, I am thrilled to learn that Google finally tunes their systems towards quality. All the recent changes have one thing in common: the focus on quality. I applaud for this.

I think Google (now) sees the world differently. In the past, the value chain looked like any of this:

a) End consumer - Google Search - MFA - Google - Merchant
b) End consumer - Google Search - MFA - Google - Affiliate - Merchant
c) End consumer - Google Search - Affiliate - Merchant
d) End consumer - Adsense publisher - Google - MFA - Google - Merchant
e) End consumer - Adsense publisher - Google - MFA - Google - Affiliate - Merchant
f) End consumer - Adsense publisher - Google - Affiliate - Merchant
g) End consumer - Google search - Adsense publisher - Google - Merchant

(a and b were nuked with the Quality Score 1.0)

Current focus is c, and d-f on the Adsense side.

I guess that Google has now decided to leave the massive growth area and enter the sustainable and more solid area of quality. Only this protects their brand and secures future growth opportunities.

The new value chain looks like this:

a) End consumer - Google - Merchant
b) End consumer - Adsense publisher - Google - Merchant
c) End consumer - Google search - Adsense publisher - Google - Merchant

The rationale for this change is clear: on the Internet, there is no need for a middle man. This is even more true if you are Google who have all the resources and data to cut out the middle man altogether. In order to stay competitive, the middle man needs to be cut out as he is only grabbing money along the value chain without adding value. (And this, dear friends, is a risk for Google as the presence of a middle man clearly indicates an inefficiency of the system. As soon as someone comes along who removes the middle man, they are out of the game.)

Google don't care whether those who in the past could successfully run their tiny affiliate sites without adding anything to the user experience have trouble paying their bills now. I guess they want to see unique content around the site topic, e.g. a site selling trips to Elbonia better has unique user reviews for hotels and car rentals in Elbonia. Just slapping up a logo and the generic/unchanged GUI of a reservation engine will not be sufficient as is does not add anything to the user experience.

Again, Google - you are on the right path! Go, Google, go, go, go!
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