Terri Wells, who writes for
Search Engine News and looks frequently at the growth of Google, has a good piece online about the vast ambitions of the company--its relentless focus on new
markets, its scooping up of advertising dollars, its intrusion into areas previously dominated by old media. And old media definitely has reason to be frightened, Wells says. Google's business
model, which places ads where they are most relevant, is hard to beat. Print and broadcast businesses cannot do that, at least not with such precision. Google is therefore positioned to steal ad
dollars increasingly. On the other hand, says Wells, "Google is no threat to content, be it radio, TV, or print. It is, in effect, a large advertising company. If old media wants to work with Google
(which I think would be in their best interests at this point), they need to make sure that Google's advertising payments to them help pay their bills. They can do that by targeting their content
profitably. They can also diversify their revenue streams by charging for their content. Some are doing that already, by selling TV shows for a nominal fee in places such as Apple's iTunes." In sum,
Wells suggests old media learn to work in the new Google world or face slow, painful extinction. Fortunately, she believes there is ample opportunity for smart media companies, especially content
makers, to thrive in Google's shadow.
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