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Re:To Figure Out Google’s Priorities, Just Look At Team Larry by brudgers on Friday April 08, 2011 @02:49PM (#2425121)
The ability to consistently identify the consumption habits of a small demographic with large purchasing power and target advertising directly at those individuals is immensely more valuable to advertisers than Adwords. It's the reason Apple does so much print advertising.

Improved browser speed and increased bandwidth means that you can perform more searches in a given time. Degraded search results mean that you will do so, and thereby generate more advertising impressions and hence more potential for revenue. Or to put it another way, anyone ever becomes so frustrated with the Google Search's results that they clicked on a sponsored link or other ad to see if that's what they wanted?

Re:To Figure Out Google’s Priorities, Just Look At Team Larry by MatthewPhillips on Friday April 08, 2011 @02:53PM (#2425137)
Have to disagree strongly with your first paragraph. What is valuable to advertisers is intent. It's why Facebook ads have such low CTR compared to Adwords. A person searching for "auto loans" is more valuable to the advertiser than someone whose buddies all drive Porsches.
Re:To Figure Out Google’s Priorities, Just Look At Team Larry by flyt on Friday April 08, 2011 @04:10PM (#2425408)
Yet the bulk of advertising dollars goes to demand generation (i.e. Drink Pepsi!) and not fulfillment (i.e. searching for Pepsi on Google & seeing a targeted ad for Pepsi).

Companies pay a lot to get people that don't know about their products to be aware and interested in them. The other side is actually the smaller market.