Wednesday, November 18, 2009

Google exec: Company doesn't need news to make money

Image representing Google as depicted in Crunc...Image via CrunchBase

The newspaper industry's claims that Google is taking its money have always made me wonder how much of the company's revenue actually comes from ads related to news stories or searches. My gut has been not much.

I don't know the answer. But these comments in England by the country's top Google exec reinforce my view. If he's right, what does it mean for the newspaper industry? Do you believe him?

Here's what Matt Brittin is quoted as saying: "Does Google need news content to survive? No. If you look at the amount of advertising we serve around news content in Google News it’s zero."

I do believe him. Just think about how you use search. Of course people use it to find out more about news topics they're interested in. But...I believe they use Google and other search engines far more often for non-news topics.
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  3. Also remember that Microsoft is picking up Yahoo search, which should give it closer to a 20% share. If this were a multi-year deal it would take that into account. Still seems far-fetched to get so much of the industry to line up this way -- room for a collusion charge in there someplace? -- but stranger has happened.

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