Margins: Google Network v/s Google Sites

As this post by Blodget points out, Google's margins on its sites are way ahead of its network revenues. They need to find ways to increase inventory on Google Sites.

Besides their radio/print experiments, Google's efforts at increasing ad inventory has primarily been on the user content side where again the margins are not high due to the revenue share model, as in Google Video and Blogger (where the share is most likely in the 70-30 range), and more recently Googlepages (no Adsense till now, but when they do introduce it they may have to share). Another way is to create and host their own content pages as in Yahoo!'s media properties which would be a completely new ball game.