Wednesday, September 01, 2004

What's Google's Growth Strategy?

Motley Fool Ultimately, one has to argue what business is Google in? It's not search, exactly. Last year, selling advertising accounted for 97% of the company's revenues, and that figure has edged up to 98% so far this year.

So if the bulk of your intake comes from selling ads -- whether it's on paid search results, email pages, or my rent-ready forehead -- isn't Google's goal to grow the number of pages that it serves up?

Google has the traffic. It's a gift that shouldn't be squandered. Does that mean that Google should roll out online services like personals or job ads like Yahoo! has or enter the auction game to face a formidable eBay (Nasdaq: EBAY)? Should it branch out into proprietary content? I don't think that Google needs to diversify its revenue base. Paid search is a growing field. However, now that Google is a public company, it is all but mandated to forge ahead and grow. That means serving up more pages to satisfy the sponsored demand. Be the portal, Google!

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