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Google Getting Aggressive with Advertising

It's Not Just About Adwords Anymore

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Google is trying to get advertising agencies to warm up to it after years of not being their favorite entity. After all, think of all the marketing dollars spent on search engine advertising (and SEO campaigns for that matter) that agencies missed out on because of a certain search giant.

Google Shows Off

Stephanie Clifford at the New York Times writes about Google invading the offices of advertising agency Leo Burnett back in July, setting up some kind of mini-carnival of sorts to show off their advertising technology. It seems that the company wants to recruit agencies to use its tools, but some of these agencies believe Google has ulterior motives.

"As Google begins trying to sell television, radio and print advertising and creates tools for buying and planning media campaigns, some advertising executives and academics say that the company is working with the agencies in order to eventually displace them," writes Clifford.

Aggressive Advertising

It’s not unreasonable to suspect that Google has its own best interests in mind. Why wouldn’t it? The company does seem to be working its way further into the advertising world more aggressively than ever. For example, they’re talking about not even waiting for Federal approval before going forward with their ad deal with Yahoo.

That’s being investigated as a possible antitrust issue. Imagine if Google was able to phase out ad agencies. I don’t anticipate that happening anytime soon, however. Google is big, and it has a lot of pull, but it’s not everything. It’s a notion that even Google itself dismisses.

"I don’t see how we would be able to actually provide a better customer experience to an individual client than an agency can today," says Google Vice President for North American ad sales, Penry Price. "There’s no way we could actually line up behind one customer and offer the services and information that an agency can today."

A Lot of Ads in Google’s Future

Don’t mark the extinction of agencies yet, but there is no question that Google is getting a lot bigger in its advertising britches these days. You got YouTube ads starting to come out, RSS ads in Feedburner, and don’t forget that DoubleClick aquisition. If that Yahoo! deal goes through unscathed, that’s going to be one big chunk of the advertising market that’s going to get even bigger.

Google Getting Aggressive with Advertising
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  • http://www.artemisinternetmarketing.com PJ

    Well I wonder how the guys at Mozilla are feeling right now. I am sure I read a while ago that Google had no plans to launch a browser.

    Hmmm look out ad agencies is all I can say

  • http://www.alliedwarmachine.com watching

    Personally – I tend to view Google as an internet based Wal-Mart – they like to move into a small niche market and take it apart brick by brick until they dominate the niche.  Google is also more or less perceived as a necessary evil – most people think if you don’t rank well on Google – then you wont get any traffic – just a note here – most of my traffic comes in from other places than Google and I am clear 1/2 million visitors so far this year and actually making money.

    Not bad for an upstart game community web site.

  • http://www.theinfogroup.com Mark

    While it’s easy to see how an ad agency could be threatened by Google’s move into traditional advertising offerings I would look at Adwords and the impact it has had on SEM Agencies for an indication of the impact Google makes when entering a new market.  None that I can tell. 

    There will always be Mom & Pop shops, entrepenuers and small business owners, etc..  who prefer to keep all their marketing tasks in-house but there will always be those who want to outsource their advertising even if this new method of delivering traditional ad buys is overwhelmingly successful.  If this weren’t the case than the Search Engine Marketers who managed ppc campaigns before Adwords would be out of business.

    Last I checked that segement of the industry is still growing.  I welcome this as another way to enhance my clients success and to those ad agencies that are scared, maybe it’s time to re-think your business plan.

  • http://www.doneright.com Paul T. Ryan

    As we’ve watched Google move (with fits and starts) into more traditional advertising media (radio, tv, newspapers), I think they are learning (maybe the hard way) that offline advertising (you know — the vast majority of advertising spend) is a lot different than AdWords.  In several ways:

    • Most offline advertising from the advertiser’s point of view is low involvement.  Make the creative, pay the man, and run the hell out of the ad.  This includes things like Yellow Pages, TV, newspaper (with the exception of things like FSI)
    • Most/all offline and traditional advertising is non-performance based.  Or I should say — performance is akin to impression based advertising online.  You pay for audience, not actions (as in paid search).
    • Most/all of the offline spend from the larger players run through agencies.  even smaller advertisers use local agencies.  The agencies provide a combination of creative development, testing, scheduling, negotiation, etc.

    Now — all of these characteristics of offline advertising are changing — but you have to acknowledge the history of this stuff to realize what is expected from a advertising channel like Google when then enter new channels.  This is why Google hasn’t set the world on fire with Google Print, Radio, TV — you’ve got to tailor the product to the expectations of the channel and/or come up with a new way to build the product that makes the expectations moot (for TV, for example, check out spotrunner.com).

  • http://selectcar.com Clectcar

    How long will offline and traditional advertising continue to be non-performance based?  With new tracking techniques how long can advertising be sold on an audience basis?  Advertisers have "paid for actions" and results. These advertisers have had a positive "ring the cash register" – "move boxes" experience with paid search. At some point, these ad buyers will no longer be willing to pay for an audienceCPM). Google has a database of these advertisers and most importantly a billing relationship.

  • http://www.pacificwestglobal.com Construction & Contractors Advertising

    Google will not be able to dominate advertising universally. Partnerships with a giant comprise an opportunity for small to medium size companies to learn from Google. 

    Traditional markets such as <a haref="http://wwww.pacificwestglobal.com">Contractors, Construction, And Industrial advertising</a> will continue to remain true to traditional forms of advertising such as magazines, direct sales, newspapers and journals.

    There is a need for streamlined processes to bring advertising agencies up to speed on the skills and technologies used by Google. Have you tried to talk to ad agencies about Google AdWords lately?

    Many think that its print and media advertising. 

    What I think will happen is this:  advertising agencies will begin to buy small search engine and internet advertising firms to consolidate the market; Google will continue to partner and provide educational rich environments to Ad Agencies; niche search engines and Ad Agencies will target specific communities and social networks. 

     

    The world, ultimately, is too big for 1 player. 

     

     

     

  • http://www.tellurgently.com TellUrgently

    Google ‘ s recent overture to offline AD Agencies is like an attempt by the elephant to invade villages . The giant that Google is in online advertise ment will gain strategically  by   integrating   with the print   &    TV media . Moreover       it shall   bring down cost of AD and        drive away   smaller , disorganised players not having deep financial pocket and pose serious challenge to the bigger ones . Good for AD spender . Lot of churning in this sector expected !

     

    • Bijan

      It is not easy for Google elephant to invade villages . Smaller players in AD space enjoy much more customer loyality and bond which is difficult to break so easily .

  • http://www.skintagsolution.com Skin Tag Removal

    Unfortunately there doesn’t seem to be any type of filtering in place when businesses get to the point where theyare monopolies, as is the case here.

  • http://vb.maas1.com ???????

    Thanks ,,,,,

     

     

  • http://www.seowebmarketing.co.uk Guest

    Hi there, I dont think Google will be able to do this solely but with the correct people onboard it could well be possible to create one global market media which more than likely Google will be behind until one of the big giants (Microsoft, Yahoo!) catches them up in global audience.  I am sure a higher platform to incorporate search, social networking, business, etc all via the mobile phone is on it’s way (with Nokia?)…….Thanx for the interesting article Web Pro News.

    Have a lovely day! – Sue,

    SEO Web Marketing – Freelance Google Expert

    http://www.seowebmarketing.co.uk

  • http://acheapwebdesign.com WebDesign

    When Yahoo Publishers Network comes out of Beta, it is bound to affect Google’s dominance as Yahoo is considered a better quality Ad platform. Advertisers go for Google only for its size and not quality.

    • http://woodlogsplitter.com/ used log splitters

      I think that AdWords has more potential than YSM and I think that Google is far better than Yahoo.

      Just my 2 cents.

  • http://car2be.com Tom

    But yet we have to wait for the final word as neither Yahoo nor Google has revealed about their negotiations. During the trial run, Google had supplied a small portion of the text-based ads that appeared alongside the search results on Yahoo

  • http://officialdeadseasalt.com deadseasalt

    Nice Work
    :)

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