Is Google’s Diversification a Bad Move?
As Google moves into differnet aspects of the Internet you have to ask yourself whether it is a considered diversification of its Internet business or a doomed experiment to move away from search based advertising, which has been Googles core until now, to content production. Google has already struggled to monetise its youtube purchase which makes you wonder why they dont concentrate on the search based advertising that has seen them do so well.
One of Google’s forays into content production has been Google news. This could be seen as a move on Yahoo news, which has done well for Yahoo. Google’s move could be seen as a way to capitalise on its advertising business by keeping it in house, but it hasn’t even put its ads on this site. It seems like a lot of effort for no return, not relly good business.
Google has recently announce that it will be dropping its AdSense Referral ads from its advertising offerings and will be concentrating on its AdSense for Content ads. It sites the reason for this change as seeking to continually improve its products and perhaps Googles other moves are an attempt to improve its business, but seeing how other companies have struggled to be successful at this, notably Yahoo, one would hope that google can capitalise on these moves.
What ever Google does do, a move away from its very successful core business could spell disaster, which would be a shame for Google. Hopefully they can keep their focus as they test the waters in these other markets.