I’ve been told by adtech professionals that a funny thing about their business is that Google and Facebook are terribly jealous of each other: Google is jealous of Facebook because Facebook can get especially personal with its users, while Facebook is jealous of Google because Google can advertise all over the Web. And yet both are missing real human relationships with their users, because the users are not customers. They are the products being sold to the companies’ real customers, which are advertisers.
What’s keeping Facebook from offering paid services to individuals — or Google from offering more than the few they do? Here’s one reason I got from a Google executive: it costs too much money to serve individual human customers. This isn’t verbatim, but it’s close: If our users were actually customers, we would have to support them with human beings, and we don’t want to make less than $1 million per employee (Yes, that was the number they gave.) And yet, all advertising-supported businesses could benefit a great deal by having at least some of their users become subscribers.
[What a mess…]
Source: Doc Searls Weblog