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Google faces legacy system issues

GLASGOW, UNITED KINGDOM - APRIL 12: (FILE PHOT...Image by Getty Images via DaylifeGoogle reported that its second quarter profit rose 35% but its flag ship ad business is slowing as the number of paid clicks at the Web giant continued to slow.

Summary:

The #1 search engine that redefined internet is facing legacy system issues as they grow bigger and bigger as company. Getting ad money from YouTube has become a challenge for Google. YouTube with one billion plus page views got a meager $200 million last year. The challenge for Google is take their legacy applications which are popular with text ads to next level i.e. video ads. Besides technology issues the advertisers are hesitant to display their ads besides amateur videos. The lessons learned from Google’s issues is that continuous focus is required on legacy systems by improving them to stay on top in the business.

Analysis :

I feel part of the revenue loss can be attributed to the cautious steps that Google is taking as infringement law suits are increasingly filed against YouTube business of Google. It is surprising to note that a world class company like Google lacks fully automated billing system for YouTube and the bills are counted manually. Advertisers had to pore over three separate legal contracts for Google sales people to get back to the advertisers shows how worse is the usability of the legacy system. The team found 105 ad sales problems with YouTube and 24 internal systems are touched to customize to what advertisers need, this shows us the growing problems of complicated system. It is good for Google that it faced similar issues in the past with the “Project Drano” because of overlap of sales database and disparate billing systems. With the current problems the “Project Spaghetti” is aimed to fix the issues and start gaining market share. Combining acquired companies sales systems is always a challenge in acquisitions.

Video:

Source : Google Push to Sell Ads On YouTube Hits Snags

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Posted By: Kalyan | Date: July 17, 2008 | Categories: Uncategorized

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