The Stalwart submits: Bear Stearns analyst Robert S. Peck recently upped his price target on Google to $550 due to what he calls the emerging "Google Ecosystem", i.e. all the companies whose business-model is predicated on selling ads through Google. But it's hard to value the Google ecosystem since we can't get a peak inside these companies' books (of course that didn't stop Bear Stearns from identifying $550 as the lever that properly reflects the value of the ecosystem).
There is one company, Seth Godin's Squidoo which, for some reason, displays how much money they've made, or it least it appears to on their front page. Now we have no interest in taking pot shots at the company; doubtcasting is soooo 2005. But according to their website, after over a month in operation, with 10,913 user-generated Lenses created a total of $1,491.76 has been generated via Google ads. Yes, one-thousand, four-hundred and ninety-one dollars and seventy-six cents. And this is a very well-publicized, well-capitalized startup with lots of user-generated content goodness. Of course this is just one datapoint, but a pretty shocking one.
So while there's a whole industry of companies trying to sell Google ads, it's not clear exactly how sustainable they are, or exactly what kind of profits they are getting. If anyone has any more data, please let us know.