Google co-founders on the reduction of controversial ads

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Google chief economist哈尔瓦里雅安(Hal Varian) said on a conference call, although the car rental companies, real estate agents advertising in the areas of weakness, but from other areas vulnerable to macro-economic impact of — – Such as household electrical appliances can coolers- the ads are on the rise. Waliyaan that, as shoppers look online discount merchandise, instead of benefiting from Google, “We in part by the ‘Wal-Mart effect’ impact. As the economy becomes sluggish, people spend money more carefully, in most cases This also means that more people are willing to conduct online shopping. ”

“Walmart effect” refers to the: When a Walmart started in new regions to sell food, it not only in our own implementation of low-priced stores, but also through the pressure of competition so that the whole area of food retail prices reduced.

So, Google advertising revenues weak, in part because of self-management issues. Google senior vice president of product management, Jonathan Rosenberg (Jonathan Rosenberg) had said the company has decided to target advertising rate (that is, hose clamp running pages show ads of the proportion of the total pages) fell to historic lows.

On the surface, this approach is some confusion. In fact, other Internet companies in the face of economic slowdown, it will increase Pages ads, rather than cut advertising.

Rosenborg also made this explanation: Google ads do not increase the rate to increase because of the so-called the “ad quality,” that is, Google users must be truly loved by running ads In addition, Rosenberg also disclosed that the Internet Marketing company co-founder Larry Page (Larry Page) or even to fewer ad pages. He explained: “Larry always said that, if we only run one ad, that is, the perfect ad, we will be better the performance.” On that day, Pec did not attend the conference call, and this interpretation.

In a conference call, Google co-founder Sergey Brin (Sergey Brin) the company’s move it has made a public objection, “Now there is evidence that, we cut some advertising too radical.” He also Pointed out that Google has developed to increase revenue through advertising technology (that is, users will be found mainly interested in the ads).

Brin said: “It is obvious that (cut ads) was not the ideal strategic considerationsLaptop computer bags, because we do not want to close down because there is no advertising.” Perhaps, investors have heard this statement to the relief.

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