Google spooks ad agencies
p2p news / p2pnet: Google’s seeming ambition to become the Microsoft of the advertising world is seriously unnerving Madison Avenue, principal home to America’s advertising industry.
“Seeking to diversify its revenue base, Google has begun offering advertisers a set of free marketing analysis tools to help customers boost how much they spend on text ads carried by Google.com or affiliated sites,” says Reuters. “It is selling ads in print publications and expected to move into branded, graphical ads.
Whoa!
“From a consumer perspective, Google is all good,” Merrill Lynch analyst Lauren Rich Fine said in a recent note to clients, says the story. ” ‘However, Google is starting to attract negative publicity (tied to) its foray into other mediums’.”
Reuters has David Verklin, chief executive of Carat Americas,” the largest independent media services company in North America, with $6 billion in customer billings,” complaining Google has begun charging marketing firms like his $50,000 a month to use Google’s ad buying system.
“We’re going to try and convince (Google) we think that’s a bad idea,” Verklin said. “I don’t want to have to use one tool to manage Google and my own tool to manage Yahoo and Ask Jeeves and everyone else,” he said of conflicts between ad systems.
“Advertisers are spooked by the idea of relying entirely on Google to deliver their ads and want independent ways to shop around for the best price and the greatest exposure, he said.”
But Google director of strategic partnerships Marc Leibowitz is quoted as saying “Nothing could be further from the truth” than the idea that his employer has a “grand master devious plan” to put ad agencies and publishers out of business.
Rather, Google sees itself ” in a symbiotic relationship with them”.
Also read:-
Reuters – Madison Avenue faces Google fears, December 4, 2005
December 5th, 2005 at 7:12 pm
So, percentage wise, how much does advertising add to the cost of goods in the so called western world? Man, humans are stupid, self centered, and GREEDY. Yes, that means you, AND ME. Damn.
December 5th, 2005 at 11:32 pm
Well it had to happen. Google is going for the money, just as Microsucks did during it’s beginnings. The result of going for the money is that the corporation mentality will enivably follow. Instead of do no evil; it will become one of what have you done for me today in the terms of market share or income.
The slicking down of ads by ad agencies is all fine and good, however for you and me that surf the net, where is the opt out in this mess? Simply it isn’t there and you can be sure there will be no turn off in most spyware hunters. The end run is that you will see more ads while trying to get around on the net, soaking up yet more and more of your bandwidth just to support the displaying of them. I don’t like that.
Those ad agencies don’t care so much about who carries their ads as they do how much they pay to get them out there. Here Google is using its position as a bargaining chip to say if they want it on line at the popular places then they will have to meet Googles terms, both in how it is displayed and what they pay to have it on line by them. Just as Microsucks took out the choices of different OS’s to the user, so is Google attempting to follow suit within the framework of major advertising. Once Madison Ave doesn’t have a lot of choices on where to display their ads, the cost of placing those ads will increase. Sort of like what the cartels of the music industry want to pull with on line digital distribution. Has nothing to do with the value, it has everything to do with charging all that the market will bear.
Those ad agencies should be very spooked but so should you. No where in all this is there any mention of a choice for the surfer, ie. you and me.