Sep 27, 2006
1 comment
Perverse Economics of Google?
Does Google’s very economic model cause it to violate its principle to “do no evil?”
In all fairness, the same question could be asked of all automated ad distribution networks, not just Google’s Adwords program.
Looking at how the ad networks work, it seems that the more content there is on a subject (that is, the more popular or broad a keyword is), the more competition there will be for producers of that content to get noticed.
Therefore, producers will bid-up the price of an ad on that keyword. Is this the most efficient way for searchers to find relevant results?
Read the rest of this post »
