Google Could Upset Advertising Model

dutter · #1 (**permalink**) 09-09-2005, 10:58 AM

Greater extensions by Google into traditional advertising media could mark a sea change in ad buying.

In the latest edition of divining Google's future, MediaPost discusses a scenario where the search engine company extends beyond print ads in traditional media. The assumptions could apply to Yahoo as well, as they extend further into the entertainment industry.

Both Google and Yahoo have been working on video search, and Yahoo has unveiled audio search recently. In the TV and radio markets, it could be possible that the continued refinement of those searches may lead to a change in where contextual advertising appears.

Instead of buying ads and selling sponsorships, the contextual ad world in traditional media would follow the auction model. That would make ad buying "far more reflective of reality and ROI." The search engines would crawl programs before broadcast and set keyword phrase bid rates.

Imagine the fun when Coke sets up a product placement deal on a show and Pepsi starts bidding up keywords like "Coca-Cola" before it is broadcast. After Google's or Yahoo's video search spider has crawled the show, the 30 second ad space both companies would wish to fill would price at what the market will bear, instead of an arbitrary figure that may not truly reflect the slot's value.

Advertisers could then extend their message across the entire media platform. Not just contextual ads on web pages and in SERPs, but also targeted to other places where their keywords appear on TV and on radio programs. Maybe this could be a future model for satellite radio, especially for Sirius, which has to pay some big money to Howard Stern and the NFL to retain those properties.

Perhaps audio contextual ads could take advantage of the podcasting phenomenon. Podcasts have achieved greater awareness, which can be attributed to Apple publicizing their availability via iTunes. The big names like ABC and other established media outlets have no problem finding advertisers to pay for sponsored spots.

For the grass roots podcaster, audio contextuals could be to them what AdSense is to bloggers (maybe we could call it VoiSense). The model for determining their exposure would probably have to mirror that of traditional broadcast media; if it is based on downloads, podcasters who continue to keep their content updated and maintain or grow their subscriber base could profit from them.

Now that Yahoo has delved deeply into video entertainment, notably with its presentation of the WB's Supernatural debut episode online a week before its broadcast, perhaps it could offer similar deals to other networks. Yahoo could provide video contextuals (let's call it Visual Match) to help it recoup the expense of hosting and serving other video content.

Google already allows users to submit their video to the search engine. Extend AdSense to them (and call that VidSense) and there's another point of presence for video contextual advertising. They could then offer that model to producers who make their videos available online at Atom Films and other sites. Instant revenue stream for them.

Madison Avenue isn't going to suddenly shutter its ad agencies. Google sees the value of print and traditional media, and search engines do have the ability to sift through and index video and audio. Yahoo already fancies itself a Hollywood player. It's not too much to think how either could extend beyond the Web, but doing so to radio and TV would be a difficult task.

robthrasher · #2 (**permalink**) 09-09-2005, 01:29 PM

This is yet one more step to Google's domination. I wrote about their sure to be dominance in my article called Post Google Earth and followed up with the following post about MicroSoft's CEO having a hissy fit. Pretty funny stuff...
http://www.cybervillage.com/blog/arc...steve-ballmer/

NEW: Email Delivery Algorithm:
http://www.activsoftware.com/xms/del...rt-ramping.cfm

kgun · #3 (**permalink**) 09-09-2005, 06:02 PM

http://www.webproworld.com/viewtopic.php?t=52222

khurramali · #4 (**permalink**) 09-10-2005, 09:26 AM

Google is expanding its business because the brilliant people working for google know that they have to keep pulling rabbits out of their hats in order to stay on top of the market and thier competition.

Google has the resources to even take on microsoft, but they know that they have to keep changing with the tides their services to meet their users / customers expectations.

Getting on top is easy, staying there is difficult.

Google has already changed the way we do business on the internet and who knows what the future has in store for us.

Google should and must diversify their business if they are to survive in this fast changing world wide web.

robthrasher · #5 (**permalink**) 09-12-2005, 01:01 PM

Google had to begin, and continues to draw the most brilliant people from all corners of the world. That is why I wrote the original article about Google. They're amazing and there's np question they will continue to have a very, very large impact on the business world as we know it. http://www.activsoftware.com/xms/

Linda Buquet · #6 (**permalink**) 09-12-2005, 02:02 PM

Some speculate that with the recent introduction of Google Talk Google will even get into the Pay Per Call game!

"With the recent introduction of Google Talk – the search engine’s newest voice and instant messaging product – and talk of a plan to purchase large quantities of dark fiber, some suspect that Google may be readying itself for an all-out venture into the newest online advertising trend, pay per call."

DMNews Google Going Pay-Per-Call Route
http://www.dmnews.com/cgi-bin/artprevbot.cgi?article_id=34022">

**brian.mark** · #7 (**permalink**) 09-14-2005, 08:11 AM

We've been putting our ads in videos for a while now, but not through Google. The latest is a dyno test of a turbocharged pickup that hits over 1000 horsepower wihout nitrous. Previously, he had broken 1000 with nitro, so I really didn't expect a huge impact.

He started posting links to it on various performance forums. He burned through 50 gigs of transfer in under 2 hours, then posted a smaller version which managed to use several hundred gigs of transfer per day for the first few days. I still didn't think much of it.

To my delight, since those people are targeted for the tool market and we're seeing quite a bit of traffic from the video and some sales as a result. Sure, a few people mocked the "commercial" at the beginning of the video in the forums, but it was rather effective at hitting that target audience for some brand awareness and to get some new customers.

When I'm able to buy video advertising, you bet I'll be all over it. It has already proven the value to me.

Brian.

CreditFN · #8 (**permalink**) 09-15-2005, 03:27 PM

This convergence is bound to happen where online media and traditional media become one. Yahoo's CEO is an old Hollywood studio exec and has plans to leverage their Yahoo! audience into a television viewing audience. They are already producing their own media and working out plans to release it, factoring they capture only a miniscule percent of their millions of users they will blow away traditional media audiences. Also, you can't forget that Yahoo! bought Broadcast.com to make this all happen down the line.
As for Google be aware and be suspicious of their technology. The other day while using a friend's computer who mindlessly downloads all their technology, I was shocked at what I saw. His computer was able to search through any conversation I had with him including AOL Instant Messanger. Google is big brother, and big brother loves them. As for their advertising models, I wish they would crack down more on Adwords spammers. How can they not control this problem? Having a finance ad appear on a site where someones web domain is clearly marketing cedar wood, is stupid and rediculous.
Google is setting up its own demise by trying to expand when they can't even control their current model. I still use their products, but question them more everyday. I wish Microsoft the best in beating the greed at Google. The only way for Google to prove they are not greedy is to setup some system controls and confirmation checks.
So before you brag about how many great technologies they are coming out with, why don't you look out for your clients best interest as web professionals and pressure them to make some needed changes.