Google First-Time 'Experiment' With Banner Ads in Search Causing a Stir

By Todd R. Weiss  |  Posted 2013-10-25 Print this article Print

Olds said he doubts that this will be a minor issue with search users. "So many users are working today with different form factors, such as tablets and smartphones, and they don't have a lot of screen real estate for their searches. So screen real estate is a very valuable commodity for users. When they are using Google on smaller devices, they just want to get their information and they don't want to scroll through ads."

The whole idea of exploring the introduction of banner ads on Google is even more preposterous when one thinks about Google's early days, when users were first attracted to its simplicity and clean design when it appeared on the scene in 1998, said Olds.

"I seem to clearly remember that one of the first reasons I started using Google way back when was that they didn't use banners," he said. "I thought this was one of their main competitive advantages back in the day. Because Google didn't do this, this was one of the reasons in my mind why they were so successful so quickly."

Experiments with banner ads today on Google's part is "a representation of the bad old days of search," said Olds.

Earlier in October, Google's stock did what had been rumored for months when it surpassed the magic $1,000-per-share mark, coming less than 24 hours after the company on Oct. 17 unveiled its generally positive earnings numbers for the third quarter of 2013. Google stock opened at $976.31 on NASDAQ, according to figures being tracked by Yahoo Finance, then went as high as $1,015.42 by early afternoon before lingering at the $1,011.01 per share mark by 2:50 p.m. EDT, and closing at $1,011.41.

The rising stock performance accompanied the company's pleasing third-quarter revenue and profit numbers, which beat analysts' estimates, with revenue coming in at $14.89 billion and profits of $2.97 billion. The $14.89 billion revenue total was up 12 percent from the same quarter a year ago, while the $2.97 billion profit was up from $2.18 billion in the third quarter of 2012, according to the company. The third quarter ended Sept. 30, 2013.


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