Google & YouTube: Bad for Google Shareholders, Bad for Brand Advertisers

YouTube would be a bad move for Google.

It is bad for shareholders since it makes Google less competitive on search since it provides a disincentive to make any advances in search technology. It also may create additional legal exposure for Google in terms of click-fraud lawsuits.

It is also bad for advertisers since it dilutes the value of Google’s ad distribution network. Advertisers are the life-blood of Google’s revenue model.

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