Re:Ohio sues Google, seeks to declare the internet company a...
by ethbr0 on Tuesday June 08, 2021 @04:48PM
(#27440582)
> It's really just a single business (advertising) with a gaggle of loss leaders adding up to less than 20% of revenue
A better way of looking at it is that Google is a collection of traffic drivers (YouTube, Gmail, etc) and monetizers (ads).
If you break the monetization into a separate company, the traffic drivers aren't profitless: because a large part of the ad profit was created from their traffic.
If Google Ads had to buy space / share ad revenue from Google YouTube, Google Gmail, etc then economics would look a lot more reasonable.
And I'd frankly be shocked if that isn't what they do internally, albeit more in the sense of "How much ad traffic do you drive, from your corner of the company?"
A better way of looking at it is that Google is a collection of traffic drivers (YouTube, Gmail, etc) and monetizers (ads).
If you break the monetization into a separate company, the traffic drivers aren't profitless: because a large part of the ad profit was created from their traffic.
If Google Ads had to buy space / share ad revenue from Google YouTube, Google Gmail, etc then economics would look a lot more reasonable.
And I'd frankly be shocked if that isn't what they do internally, albeit more in the sense of "How much ad traffic do you drive, from your corner of the company?"