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Google appears to be scaling up the ads it shows to Gmail users

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Re: Google appears to be scaling up the ads it shows to Gmail users

#121

Post by lumb63 »

Mistletoe wrote: post #63
ProjectArcturis wrote: post #20

Google now seems deep into the enshittification [1] process. Of all the big tech companies, they seemed the most customer-friendly, the least constrained by the need to optimize their money hose. But I guess the economic logic of tying executive compensation to short-term share price simply overwhelmed other considerations. The stock must go up, so revenues must grow, so Google must monetize everything to the maximum…

Am I naive to think that when you make $226 million in a year like Pichai that money should stop being your major driving force and that your reputation is more important? Like what else could he buy? But his reputation is taking severe hits. Maybe I just don't understand ultra rich people though. Maybe money is everything.

The CEO just executes the will of the board, who in turn execute the will of shareholders (types A and B shareholders, specifically, for Alphabet) who are mostly focused on delivering maximum returns. If you look at the voting power of Alphabet shareholders, it is dominated (~60%) by Sergey Brin and Larry Page.

Re: Google appears to be scaling up the ads it shows to Gmail users

#122

Post by fisherjeff »

Spivak wrote: post #118
fisherjeff wrote: post #73

Earlier quoted context omitted.

You can only comfortably say that if all of your co-investors are on board (or you have none - unlikely in Google’s case) and if you will never need to raise any additional capital for any reason. It’s very difficult to run a modern business, especially in tech, without being beholden to anyone.

All true, although in some cases you can avoid the "need to raise capital problem" by using normal business loans rather than selling ownership stake. You still need to grow to pay back the loan but you don't have the problem of new investors with their hands in the pot making demands.

Yes, but even then there’s a good chance your bank will impose covenants on you that are not necessarily aligned with your own goals.

Re: Google appears to be scaling up the ads it shows to Gmail users

#123

Post by heavyset_go »

crazygringo wrote: post #105
DerekBickerton wrote: post #64

I liken this to a sesame seed bun manufacturer. After some experimentation, they realize that shaving roughly 10 sesame seeds from each bun means they save one cent every 100 buns. They continue to sell the buns at the normal price and consumers are none the wiser: After all, who's going to notice 10 sesame seeds missing? But the sesame seed bun manufacturer continues the experiment. They continue to remove the seeds…

That analogy doesn't hold up. Because if consumers genuinely don't notice the sesame seeds are gone, that means they never cared in the first place, and this is a better outcome for everyone. Why were farmers growing useless sesame seeds in the first place? Now they can switch to blueberries or whatever and the world is better off. It's kind of like, thank god those nasty canned olive slices finally disappeared from…

If we replace 10% of food with sawdust and people keep buying it, that proves that consumers don't actually want to pay for the real thing and the company that sells it them is doing them a favor.

Re: Google appears to be scaling up the ads it shows to Gmail users

#125

Post by rchaud »

godshatter wrote: post #58
gruez wrote: post #37

Earlier quoted context omitted.

>We won't get anything other than this unless Google decides to do a huge round of buybacks and go private. The spice must flow because only growth makes money for the people who actually own Google. And after they go private why do you think they won't care about growth/money?

They will still care, but they have more freedom to take the longer view.

A longer view of what? Taking advertising market share from Amazon and Facebook? Let's be real, even if Google were private and didn't have to dance to the tune of Wall St come earnings season, it's not like they'd be using their billions for the betterment of humanity.

Re: Google appears to be scaling up the ads it shows to Gmail users

#126

Post by PurpleRamen »

rudasn wrote: post #56
laylomo2 wrote: post #11

Just another logical step in Google’s brand erosion. After a sufficient erosion has taken place a new CEO will be appointed to “bring back” the old Google. But by then it will be too late.

Marissa mayer?

The logical step would be Marissa.ai. Google is so deep in AI and Google-Scale optimization, automating their management with an AI including the CEO, should just be a matter of time.

Re: Google appears to be scaling up the ads it shows to Gmail users

#130

Post by rchaud »

lumb63 wrote: post #121
Mistletoe wrote: post #63

Earlier quoted context omitted.

Am I naive to think that when you make $226 million in a year like Pichai that money should stop being your major driving force and that your reputation is more important? Like what else could he buy? But his reputation is taking severe hits. Maybe I just don't understand ultra rich people though. Maybe money is everything.

The CEO just executes the will of the board, who in turn execute the will of shareholders (types A and B shareholders, specifically, for Alphabet) who are mostly focused on delivering maximum returns. If you look at the voting power of Alphabet shareholders, it is dominated (~60%) by Sergey Brin and Larry Page.

It is humorous to see posts laying the blame for increased ads on Gmail at the CEO's doorstep. What is Gmail's split of ad revenue compared to Search or YouTube? A hundredth of a percent?
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