Thursday, June 30, 2005

Have You Ever Looked At Google This Way?

I have been reading a fair amount of articles about Google’s stock price. Is it a bubble, is it undervalued, and what price “target” should be put on it. I have no idea and I really don’t care.

What I have realized is what type of information Google gets every day and I don’t know WHAT kind of value you can put on that. I also wonder why the privacy groups haven't squawked more about this.

Google is becoming more like a portal every day. It is a central location where many services are offered, in spite of what the “do no evil” people say. With that concept comes more Internet traffic. The more focal, the more information. But did you ever stop to think what Google is doing or really becoming?

I would say Google is THE Sociologist of the Internet…. HUH?

Every day you use one of Google’s services, you are telling them more about your interests/habits/patterns by your queries. Every keyword you put into the search bar, every news item you click on and every SMS request you make. Think about that.

YOUR behavior can be measured could be predicted by all of their servers and some software algorithms.

Not only is Google the advertising powerhouse for the "digital Internet", they are becoming THE WEB ANALYTICS company for the digital Internet too. Notice I said "digital Internet", the physical world Internet will have a completely different analytical tool.

That my friends has more value than any pay-per-click statistic.

So when I hear these “analysts” give price targets on TV for Google stock, I listen to see if they really “get it”. Cost per click, online advertising and Internet traffic are the stats I hear regurgitated. There’s also the issue of click fraud and that search is just an advertising commodity.

For right now, Google is numero uno. The more services they introduce, the more of a portal they will become, and the advertising dollars will follow. It's self fulfilling.

When you think about how much is spent on ALL forms of advertising, the database that Google has compiled/is compiling with YOUR interests and habits, I don’t really know how you can value something as big as that.

Thoughts, comments?


Anonymous said...

In a sense you are paraphrasing words from a very old song:
Google has:
Goo-Goo Googly eyes!

Anonymous said...

What if the FBI comes knocking on Google's doors to scan their database for whatever reason?
Or is it that anything you say, search or do is automaticly public, just like your garbage is?



Scott Shaffer said...

By using Google, you are indirectly giving them permission to market to you (ads)..
To find out what other info you are giving them ,read their privacy policy.

As far as Govt looking into their database for info, it wouldn't surprise me in the least.