It depends what you search for. If you search for something Google can monetize, like this search for sofas
http://i.imgur.com/KAZ6zuq.jpg
then little room is left for "normal" results. But if you search for something non-monetizable, of course less ads will show up.
A page full of blah blah sofas is not very helpful if I'm looking to buy a sofa.
To me it seems actually more useful (and attractive) to show photos, prices and filters in the "Shopping" results seem actually much more attractive and useful, or a map, or some kind of ratings.
On a side note I don't actually get the map results most of the time anymore. Guess I'm in a separate test group.
Google probably has teams full of people figuring out that sort of thing. The problem with maximizing revenue is it annoys people, so if you can figure out how to selectively maximize revenue when it doesn't annoy people...
And I think Google did a good job here as most purchases for heavy items like Sofas will be made locally.
Google (well, I shouldn't pick on google. All brokers of advertising) optimize to push you towards the product that their customers are willing to pay the highest ad rates for.
Of course, In a company concerned with it's long-term reputation, googlers will point out, this is modulated by a knowledge that they need annoy the customer less than any alternative.
My point is that an ad is always going to cause the broker to have a conflict between what the user needs and what the customer is willing to pay for, while an organic search result (unless it competes with an ad, which it often does) does not cause that conflict for the ad broker.
Huh? Advertisers want to make as much money as possible. Consumers want to pay as little as possible for the best goods.
This is a fundamental conflict for a company that has no way to add value for the consumer.
First? google only displays ads from companies that pay them for ads. Next? they order those ads by how much money they can make from those ads.
Do you really think that how much a company is willing to pay to get a consumer to see an ad has anything to do with how good of a deal that product is? If anything, the relationship is going to be inverse. I'll pay you more for a high-margin customer than a low-margin customer.
Current revenue increase is because of YouTube's contribution that's finally happening. YouTube had been time bomb in terms of revenue explosion that has been ticking for a long while. YouTube probably generates more views then most popular TV channels but there were hardly any ads until recently. My guess is that YouTube might come close to revenues eventually to web search itself.