Does Google's Advertising Model Work?

Google is a runaway success. It makes money by auctioning advertising slots.

But, is that good enough reason to classify it as being in the advertising business? I really question that.

I really think Google is in the "information access business". Think library or librarians. Customers come to Google because of it's superiority in cataloging and indexing information, and making it easily available in a simple to use format without much clutter. They are the best at it. And that is why I choose them hands down, each time. And that's why I visit the reference section at the local library as well.

I don't recall clicking on the advertisements that show up on the sides. I know the people who advertise will pay Google IF and ONLY IF I click on their advertisements. But, really, many times I am searching for information that doesn't neccesarily lend itself to something I can buy. And even if there is, I would go to www.ebay.com or www.froogle.com or www.amazon.com to buy. I do all the "academic research" in Google.

In fact, for a majority of my recent expenses, I didn't click on Google advts before I purchased. Gas, groceries, photocopies, cable, phone, internet connections, taxi rides, and more -- don't require a Google search. When I bought my home, sure, I did research on Google -- but I didn't click on banner advertisements in Google. Or when I refinanced my home. Or when I bought my new car insurance. Or when I bought my new car.

What about you? Really, when was the last time you clicked on a banner advertisement that showed up on Google's search results page? And when was the last time you clicked on a banner advertisement AND then bought from the page that results.

I am also a marketer by profession. I really wonder if I would keep bidding up on keywords and raising the auction price for the keywords. In effect, while Google's cash machine is ringing, my competitor and I are on a bidding war. That model doesn't work for me.

And I have stopped playing it.

These days, I have stopped investing in Google adwords. I have begun investing in building "real" content on webpages, weblinks, websites -- that Google's search engines presents in its "actual" search results. As does MSN, as does Yahoo, or any other search engine. I tend have greater influence over my readers when they get to my webpages that has pictures, text, content, other user comments, references, etc., than when I bid for a 15 charecter length keyword using Google adwords. Finally, I don't see the direct connection between people clicking my advertisements and people buying my wares.

Thoughts?