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- Search and the social graph cdixon.org – chris dixon's blog (December 14th, 2009 Chris Dixon)
...Searches related to news, blog posts, funny videos, etc. are mostly a loss leaders for Google. Googleâs real business is selling ads for plane tickets, dvd players, and malpractice lawyers. (I realize this might be depressing to some internet idealists, but itâs a reality). Online advertising revenue is directly correlated with finding users who have purchasing intent. Googleâs true primary competitive threats are product-related sites, especially Amazon. As it gets harder to find a washing machine on Google, people will skip search and go directly to Amazon and other product-related sites.
This is not to say that the links shared on social networks canât be extremely valuable. But most likely they will be valuable as critical inputs to better search-ranking algorithms...