Thursday, June 11, 2009

Google Generosity

From a post by on a talk by Google's chief economist:

Why does Google give away products like its browser, its apps, and the Android operating system for mobile phones? Anything that increases Internet use ultimately enriches Google, Varian says. And since using the Web without using Google is like dining at In-N-Out without ordering a hamburger, more eyeballs on the Web lead inexorably to more ad sales for Google.
So, it's enlightened self-interest. This comes from a long piece in Wired, which explained the auction logic behind Google's sales of ads. Complete and interesting.

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