They might prefer to use different labels (so as to minimize fear in the marketplace & slow down regulators), and they might claim that aggregate statistics control the investments & thus they are not really publishers, but they plan on skimming a big piece off of the top of many big markets.

AdWords was just the start!

Videos, maps & product search…look how Google self-deals in each while managing to call it a value added feature (or some such).

If Google collects data, hosts data, sorts data, recommends personalized consumption habits, and then makes small investments in new content from proven past performers (and then give them a bit of stealth promotion on their network)…how is it possible for Google to lose money? (Outside of lawsuits)?

How much of the online ecosystem can Google consume before publishers promote other views of the web?

One way to fight this sort of strategy is Yahoo!’s sell or outsourceeverythingbutthelogostrategy. It increases short term margins, but in the longrun it makes one that much more vulnerable. Google can always buy the partner of choice and then ride off the free promotion & validation that the acquisition gained from earlier partnerships. Sure adding more noise to a noisy market can bring in eyeballs, but fleeting ones. Death by a thousand compromises.

The other is to work in markets too small for Google to be interested in. Or to define & create a new vertical, like Zynga did. Even with as shady as Zynga’s founder is, longterm that company is in a better position than Yahoo! is.

More: continued here