|
Not OP, but here's how I read it: the SEO operators are driving traffic to google's ad network, where google make's its money. They aren't necessarily paying google much: the ad buyers are doing that, but they deliver the eyeballs to google's ads. Its kind of like the US hospital system, where doctors are considered by the hospital, if not de jure then certainly de facto, to be the real customers of the hospital. Doctors don't pay the hospital much of anything -- the patients do, usually via their insurance company -- but without the doctors, no procedures happen (i.e., no "traffic.") Hospitals can't bill for room and board, nursing services, therapy, etc., where the hospital makes its operating income without the doctors, and in markets where multiple hospitals exist, doctors drive the patients to the hospital(s) of the doctor's choice. Ergo, the doctor is the "real" customer of the hospital. The hospitals can and have adapted to get a bigger share of the revenue pie by hiring their own doctors and buying up the clinics that drive a lot of customers to hospitals in the first place, just like Google has introduced products that are more vertically integrated, but the basic dynamic still exists where they are dependent on third parties to deliver customers. |