For years now, Google and Yahoo have been making a significant portion of their income on the paid sponsored ads to the right of the search listings, and that is about to expand. Google has recently discovered a loop-hole in anti-trust legislation which will allow for the ultimate sale of organic rankings - the catch – they must partner with Yahoo.
Current laws do not allow for paid sponsorship of unlabeled organic listings; however Google has found a way around this – by spidering and indexing paid listings at competing site Yahoo, and including them within their own search results.
Google will soon start to spider and index select ads posted through the Yahoo Search Marketing platform, and rank them within Google’s own organic results. These paid ads will be given an artificially high ranking and will appear at the top of the organic results – appearing as free listings to searchers. Google will receive 80% on the per-click spend; this in itself may sound great, but it barely scratches the surface.
In order for Yahoo Advertisers to open up their ads to Google, they will need to pay a monthly service fee, of which Google will take the lion’s share. While the actual dollar amount for these fees has not been officially released, industry experts are anticipating the flat rate fee to be well in excess of $10,000/month - a small price to pay for first place ranking in a competitive industry.
It is expected that the increased revenue from this initiative will result in a boost in Google’s market value by as much as 30% in as little as a year; however, this may be an understatement given a 21% jump in Google’s stock shortly after markets opened this morning (increasing by $81.01 to $424.37).
This is only one of a number of plans that Google has for the very near future in order to ramp up its overall market value. With a looming sale to occur in April of 2010, Google wants to ensure that they get top dollar. Earlier this week, the next phase of buy-out negotiations was reported between Google and the White House with an agreement in principle that the US government will pay fair market value in April of next year.
Google has become one of the biggest players in the technological world, but lesser known is its growth as a high-level power in the political world and the US government wants control of this power. This potential government acquisition of the search giant is no big surprise given the extensive bank of in-depth information Google has amassed over the years.
“Google has been selling information to the US government now for several years,” Frederick Grinder, head of Google’s Secret Search Team, noted in a press conference early this morning. “An acquisition seems like a natural step.”
Several years ago, Google was fined $15.5 Billion by the World Court for unleashing a virus-like spider that infiltrated many world-wide government databases and amassed an immense amount of sensitive information. (You didn’t think that Google actually paid $2.2 billion for YouTube, $3.1 billion for DoubleClick, and billions more for others did you? These were merely cover-ups for the fine). While part of the court order was to have this data permanently deleted, many conspiracy theorists believe that Google still holds all this information, and the US government wants unrestricted access. The only way to secure this access is through full ownership of Google.
You’ve probably heard of Google Webmaster Tools, well Google also has Google People; A complex database consisting of confidential information on the vast majority of the world’s population accessible only to those with high-level clearance. Google knows what you bought using your super market discount card, they know what you charge to your Visa, they know your SSI and all your personal numbers, and they have all your internet passwords. For the US government to have access to all this same information they can significantly expand their anti-terrorism campaign which began during the Bush administration.
“With the help of our top secret satellite imagery and foreign personnel files we were instrumental in the capture of Saddam Hussein – with unrestricted access there is no telling how far the US can go to increase the safety of our nation,” Grinder went on to say.
We will continue to keep you informed as this story develops. In the mean time, have a wonderful April 1st.