[zelphirkalt]

At the same time it is also a huge bubble, that Google is just hoping will never burst. People and businesses way overestimate the impact their ads are having and way underestimate the impact, that treating customers well can have.

[quadcore]

I definitely think this is the strategy of google leaders, they've heard to much of "how do you monetize your products?" from investors and now they are maximizing profits for that current software generation. I wonder though if that bulk of money will be that much of an advantage when the tides turn. It could attract the wrong kind of leadership amongst other things like customer distrusts and turn the company into an IBM of some sort. Namely, I would rather maximize youtube premium memberships (which is at "only" 50 millions) over ads (surely they've local-maximized the balance between the two as it is) - but its easier said than done.

[sharemywin]

I think both are important. Word of mouth is useful and important but no one would use google to search to buy stuff if that was the only way to reach customers.

Also, if your established it probably a good idea not to let new competitors get a foot hold in the market with an easy google win.

It's also pretty effective for local businesses because not a lot of local businesses are tech savvy enough use it effectively.