What Makes Google Tick? A Pointer to an Analysis

Why does Google do what it does? A report by the faberNovel management consulting firm describes Google’s “key success factors” and how it goes about achieving them. The report talks about “Google as platform” and goes on to describe how it makes money serving the network effects of that platform. For instance, it subsidizes one side of its platform — search engine users searching for free — to gain large amounts of traffic (eyeballs) that advertisers want (the network effect). Even more than that, though, Google sees advertising as a form of information in and of itself. The report says: “With [its system of selecting ads to be placed on a page], Google is able to claim that their ads are in fact a way for them to provide additional information to the user.”