Post #9 by hedgehog444 on the Alphabet board

Stocks A to Z / Stocks G / Alphabet (GOOG)

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Google is presently delivering ads *extremely poorly*.

I wonder how much control Google has over this problem. As I understand it a company can buy "ad words" that they want to be associated with. So if you search for roller skates Acme Products wants you to see an ad for their rocket-powered skates. Perhaps you aren't interested in that version, but Acme has outbid everyone else for that ad word. So while Google can do a great job of monetizing ad words the effectiveness of the result depends on what the purchaser does with it. A "two to tango" kinda problem. There should be a feedback loop so that Google can show Acme that the return on investment for their ad isn't great, but it is up to Acme to try a new ad (maybe knee pads and crash helmets?).

Rgds,
HH/Sean

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