Google's focus on search will become a critical weakness

The focus on the search market is likely to become a critical weakness of the search giant Google, because the growth in this market has begun to slow down, and almost all of Google's revenue comes from the business of search habits. In addition, the focus on the search field may expose Google to the eye, thus losing opportunities in other fields.

Real-time Google does not predict the value of a few texts: text advertisements based on search results often have only a few sparse words (10 to 15),
These lines of text increase the net income of search giant Google by 468% in the past two years, reaching $2 billion.

The search market has cooled down. Google is pinned on overseas markets.
However, some analysts in the industry pointed out that Google's focus on the search market is likely to become its critical weakness. At present, almost all of Google's revenue comes from the search business. However, this market growth has begun to slow down. According to the consulting firm Forrester, in the increasingly mature U.S. search market, its growth rate will decline from 45% to 30% this year.

It is expected that the search market is cooling down. In February, the two analysts lowered Google's stock grade, which directly led to a 5% drop in Google's share price this month, at $185. Since Google launched its IPO in last August, its share price has increased by 121%, and its market value has also increased to $50 billion.

The company's management layer is still full of confidence in the text advertisement business based on search results, and believes that this business is still growing in overseas markets, after all, the search traffic in overseas markets is more than half of the total traffic, but its revenue is less than three points of Google's overall revenue.

Google is attracting many traditional large advertisers. Only 1000 of the world's 227 large companies have become Google customers. Eric E. Schmidt, CEO of Google, said that this is almost an undeveloped market.

Google's new business is still inseparable from search
However, it is the focus on the search field, which may expose Google to the eye, thus losing opportunities in other fields.

Looking at the competitor Yahoo, Google will understand what it lacks. Without doubt, Yahoo's diversified business model is now successful: Although the search market has created 45% of its revenue, nearly 1/3 of Yahoo's revenue comes from display ads) in the market, another 16% of revenue comes from user subscription. In contrast, 98% of Google's revenue comes from the text search ad market.

Of course, this does not mean that Google has not invested in other businesses. Search giants plan to invest almost 30% of their R & D funds on non-search technology projects. Although this is good, Google's non-search projects are almost related to text search advertisements.

Take G-mail, an email service widely publicized by Google, for example, it does not charge $10 or $20 a month for users to use their large email addresses, google focuses on text search ads that are sent to users along with the content of the email. The content may be an NBA contest advertisement from online ticket booking agencies. Google expects these email users to click the ad link to bring revenue to advertisers. However, most observers in the industry doubt this because most email users seldom click on these links.