Google makes money by selling targeted advertising space. That’s its core business. Providing search results is simply the vehicle for doing so. Search doesn’t generate revenue in itself.

Has it ever occurred to you how contradictory the goals of these two activities are?

One being to provide perfectly targeted search results, the other to sell as much advertising as possible?

What would happen if every time someone performed a search, they found EXACTLY what they were looking for in the first few results?

This is what would happen: people would hardly ever click on the Adsense ads displayed on the results pages.

Why do people click on ANY link?

Because they think that it will take them to a page about whatever it is they are looking for.

Why do people click on the Adsense ads around the search results?

Because they think the ad is more likely to take them to a page about whatever it is they are looking for than the other links they see on the page.

Key Point:

Whilst many people are still trying to understand what Web 2.0 is, the other day I came across an interesting post, How To Define Web 3.0 by Steve Spalding at How To Split An Atom.

In it he attempts to predict the defining aspects of the next phase in the evolution of the Internet, which is being tagged Web 3.0.

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Here are a couple of excerpts:

Definition [Web 3.0]: Highly specialized information silos, moderated by a cult of personality, validated by the community, and put into context with the inclusion of meta-data through widgets.

And:

Analyzing Web 3.0 is an exercise in understanding how human beings naturally consume data. We tend to gravitate towards specialized information silos for the majority of our information. That’s why we have television stations instead of one massive GooTube, and why we buy magazines about our favorite subjects instead of white sheets containing random news articles.

Web 1.0 lacked context, Web 2.0 lacked interoperability, Web 3.0 will be a web where websites become web services and access to any information you desire is no more difficult than installing a widget onto your website.

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