You say it like it's a good thing. The issue with the future of advertising lies within bounds of privacy. At this point, with using Google applications and the Internet in general, we are giving up a lot of privacy and although we realize it, we don't really care. It will be interesting to see in the future what Google and other software companies will do with the massive amounts of information they've collected from us. There will be a backlash against the technocrats.
Well, I study information management and while most of my courses are either IT or Business I also had a lot of lectures about the information itself and companies like Google also.
Most of all people don't actually understand the value of information in the first place. Google understands that gathering information is important and it will be more and more expensive with time. The value of information rises and most people yet don't understand that it's a very important resource. Picture a database full of information about people, their habits, interests and text messages as well as emails. They have rights to use them for their own causes. We give away our info "for free" - for services that we want to receive. Why not? E-mail address? Why not? Search history? Why not?
In reality it's worth way more than we receive in exchange which is usually a specific service.
People getting information emails or popups, ads on youtube they agreed to see - think it's okay, it's normal.
Convincing someone that receiving a spam e-mail is equal to "getting robbed" would be pretty hard.
However right now this database is valuable because it helps their clients reach potential customers with their products on almost perfect conditions. However possibilities are almost endless. I can see them shooting customization of their partners offers to our specific needs and interests to a whole another level.
Google succeeds because they seem to offer services for free using people who are unaware of what they're actually paying and they are subtle enough to get away with it. They don't sell our information. Actually selling it would be stupid. A company having the most information about people has all the power. In the future I can see them being a leader middleman between companies and their clients and opening endless possibilities selling services to anyone willing to use these information for any cause. However I doubt they'll ever be too aggressive with it as people would stop trusting them. There's a perfect balance right now and it probably won't stop as there's always more info to gain.
Apple employs top talent. Steve Jobs is a visionary (cliche term describing him), and he's a good manager. He brings the best out of the best brains.
Yeah business wise that's very true.