The beginning of the end? Google in danger of being shut out of rapidly changing Internet

“The upcoming IPO of Facebook, the flak surrounding Twitter’s decision to censor some tweets, and Google’s weaker-than-expected 4th-quarter earnings all point to one of the big events of our times: The crazy, chaotic, idealistic days of the Internet are ending,” Keith Woolcock reports for TIME Magazine. “Once, the Prairies were open and shared by everyone. Then the farmers arrived and fenced them in. The same is happening to the Internet: Apple, Amazon and Facebook are putting up fences — and Google is increasingly being left outside.”

“When Google reported its results two weeks ago, the first headlines focused on the 25% increase in fourth quarter revenues compared to last year. Investors, however, focused on the drop in the cost per click that Google is able to charge advertisers,” Woolcock reports. “The main reasons for the decline in this all-important metric is increased competition from Facebook, Amazon, and Apple.”

“Start with Facebook, which has erected a cyber fence around its 800 million-plus users and refuses to share some important data with Google. This means that Google’s searches are not quite as valuable to advertisers as they used to be when the Internet was open and when Facebook was much smaller than it is today,” Woolcock reports. “Apple’s land grab, meanwhile, may be the most definitive. The Apple universe is like a cable TV network that owns content or aggregates it. It’s phones, computers and tablets are like the set-top boxes your cable company gives you. The content you consume might be a film that you download, a song, a book, an application or something you buy on line, like a pair of shoes. And none of the data Apple’s customers generate is available to Google… Android may have market share, but more than half of mobile searches come from iPhone users. Google may have developed Android but, unlike Apple’s iPhone, it does not really control it… And smart companies like Amazon are getting a free ride on Android while sharing little of the spoils with Google.”

Woolcock writes, “The danger to Google, in other words, is that as social networking, smartphones and tablets increasingly come to dominate the Internet, Google’s chance to earn advertising revenues from searching will shrink along with its influence.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Dale E.” for the heads up.]

Related articles:
Aftershocks from Android market share dive rumble through mobile market – January 31, 2012
Legendary judge hands Apple key patent interpretation victory against Android – January 30, 2012
ABI: Apple iPhone tops smartphone market as Android suffers its first decline in share – January 27, 2012
Apple overtakes Samsung to take world’s largest smartphone vendor crown – January 27, 2012
These charts will make the Fandroids want to puke – January 26, 2012
AT&T sold 7.6 million iPhones and fewer than 1.8 million Android phones in Q411 – January 26, 2012
Apple’s iOS passes Google’s Android to take U.S. smartphone market share crown – January 25, 2012
Analyst: Verizon’s record iPhone sales signal waning demand for Google Android phones – January 24, 2012

37 Comments

    1. What is grossly missed is that Siri doesn’t stop to read ads. Siri is in Beta. Siri will be on all Apple products and devices before the year is over. Google RIP … the biggest Apple iRoadKill of them all. I think Steve Jobs called it “going thermonuclear on them”.

  1. Android is stolen technology. Google has sowed the seed of thievery, so they reap a harvest of sorrow. May sickness and unhappiness follow them and their shareholders for the rest of their days. And when they do die, let them be cast into the flames of perdition to be torn asunder be demons until the end of time. Or, as the young people say: F*ck Google!

  2. I think this guy’s premise is wrong. Google’s problem is not Apple, Amazon & Facebook. Google’s worst enemy is Google. They’ve taken their eye off their core business and forgotten their mantra of not doing evil.

    1. Nailed it. Google’s best product used to be their search engine. But they have ceased to improve it and now it sucks, delivering 90% irrelevant results. Now they are adding even more clutter and skewing the results by adding in their own social network results. Someone else is going to invent a better search engine and then Google is gone.

      1. Nothing so benign as ignoring search… they purposely have been dumbing results down – it was too good! People a year + ago were clicking less on ads…. what to do? Make ads return more accurate results by dumbing down search results… Yeah thats it!

        The biggest concentration of smart (phd’s etc) in history is now an organized crime ring. Be very afraid!

  3. I do not believe any of this. Whenever Time magazine fails to name Steve Jobs Person of the year MDN is quick to remind us that Time magazine has gone downhill and is worthless. Obviously they are wrong about this too!

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.