Few people remember it, but the same thing happened at HP. It used to be that HP engineers were expressly given Friday afternoons and full access to company resources to just play with new ideas. Among other things, this led to HP owning the printer market. Then "professional" management came in and killed the proverbial goose. They had to focus more on the "bottom line". To do what was easy to measure and track, rat…
It boggles my mind, given the big money involved, why so many people continue to bet huge sums of cash on the proven short-term penny-wise/pound-foolish idiocy of MBA-think. I mean sure-- if your company is under cash flow pressure you have to pinch pennies. You have no choice. Spreadsheet says so, and spreadsheet's the boss. But if you're not, you should be investing and thinking long term cause the other guys proba…
Google's per-ad revenue was down 6% last year. Ads are 95% of their revenue. They have huge data to see trends.
Just because Google is still profitable doesn't mean that they aren't seeing a near future of red ink. Say per-ad revenue goes down 10% next year with the same costs and their profit goes from $10 billion-ish down to $5 billion. And if this decrease is a trend?
Competition from iAd and Bing Ads, smaller screens that are harder to advertize on, and so on. It's easy to see a near future Google that has to spam ads or make huge cuts to remain profitable.