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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 !

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. 

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).

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.