I don't see a problem. Google continues to create more and more applications where they can include AdSense, and as long as they have more and more space to put those ads, then companies will continue to buy.
Google, which shared $504 million in ad revenues with its various distribution partners in 2003, controlled roughly 20 percent of the paid-search market last year and was effectively one of the biggest ad agencies on the Web.
While overseas growth could further bolster ad revenues at Google, the company cautioned investors in its prospectus that ad spending has historically been tied to economic cycles.
1. This is an extremely flawed statement.
"I don’t see a problem. Google continues to create more and more applications where they can include AdSense, and as long as they have more and more space to put those ads, then companies will continue to buy."
This would be better:
Advertisers will continue to buy inventory at premium prices as long as AdSense has an ROI higher than other methods of advertising.
The more applications that Google develops where they can include Adsense, the larger percentage of the profit they can keep for themselves.
They're riding high now, but something will come along that is a more effective advertising medium, eventually. I am not sure what, but it'll come.
Posted at 4:40AM on Dec 19th 2005 by Peter