The Internet, you know, 10 or 15 years ago sort of felt like the wild West. You could go out there and do anything and search for things, and, you know, find out about stuff. Now always in the back of my mind, you know, whether it's email or whatever else, it's like, well, is this going to show up somewhere? Is someone going to keep track of this and, you know, know I was searching for - maybe it's an embarrassing disease, maybe it's a weird hobby?
Tim WuI think that's been really the key, the idea of trying to harness social capital for selling purposes. That we've let this happen so easily without clearly getting something in exchange is kind of amazing to me.
Tim WuI do think the best thing for companies like Google and Facebook, if they are afraid of this ethical trap of advertising, is they should start letting people pay who want to pay and avoid some of the advertising.
Tim WuGoogle has - at least at this point - maintained the line where it keeps organic results separate from the advertisements. But over time - so in other words, you still get the - there still are honest to goodness results which are based on an algorithm which is based on how important or how many people link to that particular site, so there's that. At the very beginning, there were unobtrusive advertisements on the side that sort of showed up when you typed in certain phrases. Over time, the amount of real estate that those ads take up has increased.
Tim WuWhat's so interesting about the internet - I keep saying this - is the web has gotten worse over the last five years as opposed to better.
Tim WuGoogle's AdWords, they allow you to bid on words that people will type into the search engine, and they cost more or less. For example, I think mortgage refinancing can cost - now, it's probably hundreds, maybe thousands of dollars. So, in other words, they are allowing you to bid on what people are going to type, and that is the AdWords program. So you own certain terms, and then your ads show up as opposed to someone else's.
Tim Wu