The news item was indeed the validation of long tail in advertising..62% of the revenues came from adsense as compared to 25% couple of years back. Reminds me of Goto.com case where the revenues from syndicate business reached 90% of their total and the management for some reason decided to concentrate on syndicate business ..Thus goto.com as a search destination slowly vanished…Such situation will never happen with google..or will it ? What if 99 % of the revenues come from adsense ? What will be the fate of adwords ?

Google’s net income nearly tripled to $1.03 billion as the Internet giant continues to gain market share in Web search and online advertising. Revenue rose 67% to $3.21 billion, including $976 million in commissions paid to marketing partners.

Revenue growth on Google-owned sites outpaced revenue from its Adsense program. Google-owned sites generated revenue of $1.98 billion, or 62% of the quarter’s business.