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I have been looking at many startups in the networking, internet video and internet advertising areas. It occurred to me when reading Google’s (NASDAQ:GOOG) recent financial results, and while reviewing a few companies that want to build products to narrow advertising bands for service providers of cable, telco and wireless heritage, that this is what Google has accomplished. Google developed their proprietary search algorithms for data mining, but the real brilliance seems to be how they used search to narrow advertising bands to a single unit.

I have spoken with many service provider executives as well as venture capitalists and entrepreneurs and I have read countless blogs and papers on advertising revenues and the shift from old media to new media. I think it can all be summarized by the following: the companies with broad user bases, distribution ability through content applications (i.e. video, voice, gaming, search, etc) and who have the ability to narrow advertising bands to small units, ultimately a unit of one, are the revenue winners.

As always, thoughts and comments welcome, whether private or public.

Full Disclosure: I do not own shares of any of the companies mentioned in this post.

Source: The Key to Google's Success