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Success, Criticism, Profit, Scrutiny: Just Another Day for Google


The conglomo's life is
a mixed bag at best

In just another day, the search/ad giant has claimed a bit of success, been criticized by a competitor, had its business model scrutinized, and come under fire over privacy concerns.

Bloomberg News reports Google's multimedia ad formats are performing well. These include YouTube ads, gadget ads and other products.

Google says the new formats are being tested by a number of advertisers and will soon account for a good chunk of its income.

At the same time, Microsoft fired another public relations salvo at Google, telling a panel audience at the Web 2.0 Summit that Google gets way too much credit for search ad clicks.

A Microsoft exec says search ads often get clicked on after someone sees a banner ad, then runs a Google search for the brand name, resulting in a click that shouldn't really have been. Microsoft is currently working on a system to track that sort of behavior and give credit to the banner ad.

Meanwhile, Henry Blodgett crunched the numbers in Google's latest report and found the company's advertising business runs on a 75 percent profit margin. He arrived at that figure based on the number of employees likely to be working in advertising, and the revenue generated from those businesses.

Scrutiny of Google's recent purchase of Jaiku has also begun. Privacy experts say Google's access to the whereabouts, activities and contacts of Jaiku users raises major concerns because of the "live" nature of the information.

Far from a simple micro-blogging service, Jaiku is considered by some to be a mobile content business that maintains a constantly updated address book, where people can see where friends and contacts are — information Google could put to significant use.

And finally, the European Commission extended the deadline for its review of Google's purchase of DoubleClick. The panel reviewing the purchase now has until November 13th to make a decision, including coming up with possible alterations to the deal to address concerns over its impact on competition.

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