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editorialGoogle: the alpha or omega of advertising?By Tiffany Louie
Google has been on the rise of the advertising industry, as they continue to successfully implement their target-based advertising methods through AdSense and AdWords. While Google seems to be successful with their rising advertising revenue, what makes up for Google's success? According to two seasoned ad professionals, Rex Briggs and Greg Stuart, in their book "What Sticks: Why Most Advertising Fails and How to Guarantee Yours Succeeds," 37% of advertising dollars are wasted, amounting to some $85 billion dollars of waste per year. In addition to Briggs and Stuart's points addressed in their book, Google continues to pave the way for a 2006 advertising transformation in the following ways:
1) Advertising through various vehicles - Google is running a test offering about 2,000 premium videos available for free streaming viewing, inserting a persistent banner-type ad at the top of the screen and showing an additional post-roll video ad once the premium content has finished streaming. More - Google is preparing to deliver "targeted measurable television ads" and Google CEO Eric Schmidt says Google has "a good shot at it." Schmidt believes Google should be "using our advertising system, our targetability, for every form of advertising." More
2) Teaming up with other Big partners - AOL: Google may pay $1 billion for a 5 percent stake in America Online as part of an exclusive deal with Time Warner that would strengthen ties with the search giant instead of dumping Google for Microsoft. More - eBay: Google will supply eBay with Web search advertising outside the United States, and the two will join forces on "click-to-call" ads that link online shoppers to customer service operators, the companies said on Monday. More - NewsCorp: Rupert Murdoch has locked in a three year $A1 billion advertising revenue sharing deal with search engine Google Inc. Google will now be the exclusive search provider for News Corp's websites, including the popular social networking site MySpace.com. More
3) Advertising through other services - Google Maps will begin offering printable coupons for everything from pizza to car washes on Wednesday as the search giant makes a move designed to appeal to peoples' appetites for a bargain. More
4) Competitive Advantage - Google offers higher monetization of keyword ads, which allows the company to promise higher minimum payments to big partner deals. Such is the case with Microsoft, who lags behind Google despite their Facebook deal. More
Google's future? - In July 2006, Merrill Lynch said they expect Google to continue to remain competitive for distribution partners and potentially gain search share over the next couple quarters, helped by toolbar deals with Dell and Adobe. More - While Google can bring many companies traffic, if they are listed near the top ten on a search result page, some may risk impending extinction due to Google's free software releases and "innovative approach to copyright law." More - Instead of embracing Google as one of their own, many in Silicon Valley are skittish about its size and power. They fret that the very strengths that made Google a search-engine phenomenon are distancing it from the entrepreneurial culture that produced it - and even transforming it into a threat. More The "Big Idea Chair Award" - October 4 and 5, 2006
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