Google Inc (GOOGL)’s Latest Innovation Is an Ad-Cutting Experiment

Google (GOOG)

For avid Internet surfers who like to explore various websites, advertisements are a bane which need to be put up with and it is with the intention of toning down, if not eliminating, this disruption that Google Inc (NASDAQ:GOOGL) has introduced the concept of a Contributor. Courtesy of this feature, your website surfing experience will be relatively free of advertisements hosted by this particular search engine. In lieu, Google intends to levy a monthly charge ranging between $1 and $3 for users which it says will be split between itself and the website.

Following is the statement which the Google Inc (NASDAQ:GOOGL) released to explain its source of inspiration –

“Today’s Internet is mostly funded by advertising. But what if there were a way to directly support the people who create the sites you visit each day?”

In order to avail this service, websites would need to sign up with the search engine and enter into a pact wherein the monthly charges paid by the subscribers would be split between the two parties. While the proportion is yet to be revealed, Google Inc (NASDAQ:GOOGL)’s spokesperson explained the modus operandi as follows –

“We keep a portion [of the subscription fee] to operate our advertising network on which Contributor runs. This is the same amount we charge advertisers to show their ads. The spaces where the thank you messages show are ad spaces where publishers use the Google ad auction to show ads.”

Google (GOOG)

So far ten websites have opted for the Contributor program, largest amongst them being Imgur with 100 million visitors per month, and these have been put on trial basis to check how well the system works. If it clicks, it could completely transform the current scenario wherein the Internet need not depend solely on advertisements as a source of funding.

For Google Inc (NASDAQ:GOOGL), it is just a matter of shifting its source of income from ad companies to subscriptions while the revenue would be more or less the same.

This article has been written by Vinita Basu.

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