Hacker News new | ask | show | jobs
by tomlue 2105 days ago
I don't think he meant that other companies are bad at getting clicks. I think he meant his company relies on search engine driven ads. Google has a monopoly on the search engine. There are many companies that need to rely on search engine traffic, not social media, for online advertising.

Keep in mind that search engine traffic is enormous, and can fairly be called a "trade" or "commodity/service" that can be monopolized in it's own right.

I don't think anybody is saying that google has a monopoly on all advertising.

2 comments

But I don't think this tracks unless you treat search as something special. If I own a billboard then I have a monopoly on that billboard. Presumably I built/bought that billboard because I knew that the ad space would be valuable and that companies would need to pay me for it.

Google owns extremely valuable ad space but that to me doesn't make a monopoly just because Bing or Facebook's ad space isn't as good for certain companies.

And if only one company owned all the billboards in the world, that would be a monopoly too.

Monopolies are traditionally assessed in terms of product categories, not entire industries. Nobody ever said "standard oil isn't a monopoly, because you can also buy coal fuel"

And practically any company can build as many billboards as they want. Online ads aren't restricted by physical space. Google just happens to own most web traffic because they're really good at search.
Maybe a better analogy is Google owns the biggest road system (search) and all land beside it for billboards (ads). Very few people use other road systems.

Now, one might say "But users can choose other search engines." But users are the resource, not the customers. Right now, Google controls most of these resources. And the very nature of search means they're not sharing access with competitors.

> And if only one company owned all the billboards in the world, that would be a monopoly too.

You mean clearchannel? (Now iHeartRadio)

It makes sense to treat search as something special; when people are looking for a service, they search for it. They won't see ads for that service on, e.g. social media because social media won't know they want that service.
Google search ranking is critical and Alphabet knows it.

If I google search for "koop ebike" and you're not on the first page you might as well close your shop.