[I]t's an open question whether Google will make the same kind of money in a post-advertising marketplace. I'm betting they won't.

Not sure how relevant the display ad figure Doc uses is to GOOG's business, and I'm guessing that the "post-advertising marketplace" will be more like a "different sort of advertising marketplace," and that this is one reason Google is pushing its high-speed program.

Comments

[Bubba]

As someone who is thinking about setting loose at least one of my dogs to hunt in Google Ad words, I find this very interesting.

I'm also interested in seeing the study that says "8% account for 85% of clicks" on display ads. If I recall correctly, recent intelligence from other sources would indicate that 8% number is low.

[Roch101]

Clicks are good. They are the one thing no other advertising media can deliver through its native media. They are not, however the measure of success or failure for an online ad. Like other forms advertising, online ads can inform, motivate and build awareness even without the click through.

[Ed Cone]

Search ads would seem to be built on clicks, though, rather than branding etc. They're search-specific rather than the traditional shotgun approach -- less like a billboard and more like the Yellow Pages. I think its a more resilient model than other display advertising.

[Jim Caserta]

What if google uses its 1GBPs bandwidth to your home to deliver video-on-demand, but that video takes from your preferences what ads will be most successful. With the amount of personal information facebook has, I am surprised they do not have better targeted ads. Video delivery in and of itself is a pretty lucrative business. Up front costs high, but marginal costs near zero.