It’s very easy to misinterpret things when you don’t understand business.

Google has a number of different competitors in the market. Microsoft Bing being a big one. Yahoo being another, of which Microsoft acquired control. There are also a number of fly-by-night advertisers cropping up left and right, because this is where the money is at.

So, if you use Google as an advertiser and think they are giving you an unfair cut of the money, all you need to do is go to a competitor. If you don’t think there are any viable competitors, just acquire direct advertisers yourself.

It was possible before Google and is still possible today.

The real reason Google is so successful is because the competition aren’t giving terms which are much better. So, the one giving the best service is going to naturally rise to the top. Google is that clear winner (so far).

On a side note, this article is still a bit misleading. Saying that Google isn’t in the search business and is, instead, in the advertising business is a misnomer. It would be like saying Time Magazine is not in the magazine business but in the advertising business. And that NBC is not in the entertainment business but in the advertising business.

Just because a business makes the bulk of their income FROM advertising… does not mean they are only in the “advertising business”. Otherwise, you could say your local grocery store is in the advertising business because they “advertise third-party products on their store shelves.”

The fact of the matter is… if Google’s search engine vanished, they would lose a majority of their money. While they do make most of their money through advertising, that advertising is featured primarily on their search engine. Thus, their search engine is the mainstay of their business.

They have two ways of doing business as a search engine. Charge everyone money for using the search engine and make it ad-free… or, put up ads and provide free search to everyone. I think the latter model is a win-win for everyone because it gives advertisers an avenue for getting attention and it gives consumers a free service.

To somehow think this is a bad thing is just someone trying to get more blog hits. A blog which, no doubt, features advertising. A blog which probably earns most of its income from advertising. A blog which might not consider itself to be in the blogging business, but the advertising business, perhaps?

Recently Google Adsense adopt a new price policy invoked by the world economy crises while taking the same revenues from advertisers
they give less to publishers .
so if you a website or blog and you have lets say 100 clicks a day which
was yield 10 US$ for you you now get 2 US$
So great Google like Shylock in merchant of venice.

To Anand’s point, Google would be in the search business only if you as the search “customer” paid Google to access search results. This isn’t to say that search isn’t central to Google’s genetic makeup as a company. Rather, search is one of the strategic core competencies that supports, enables, and drives Google’s advertising business by connecting advertisers with potential customers.

As Charmaine points out, search-based advertising is only one of several channels through which Google monetizes on advertisements (albeit presumably the dominant one). AdSense, for example, has nothing to do with search, and everything to do with driving advertising revenue.