Saturday, February 11

Google repositions as multi-media advertising platform

11 February 2010

Today, Google became the advertising platform of choice for News Corporation worldwide. The deal, worth $1 billion dollars per annum, will enable News Corporation to streamline production facilities, increase operating efficiencies and rapidly speed the delivery of targeted advertising on any platform (TV, Radio, Web, Mobile).

Using Google's MediaSense system, News Corporation can receive ads online for any platform, any brand within the group and across any target audience the advertiser specifies. Like the early AdSense system, popular at the beginning of this decade, Google has opened up advertising to the masses providing simple easy interfaces for small businesses to start spending ad dollars.

In 2005 Google was perceived as a threat to the world's major content brands as advertising money shifted from tradional media platforms to Google and other search engines. Now, it is widely recognised that Google's original advertising system has significantly grown the value of the advertising industry (media) globally. The technologies have opened previously undersold inventory to thousands of smaller advertisers. Whilst the media industry has benefited as a whole, the large brands have suffered rapid shake up in their sectors with declining yields and shifting of budgets between platforms. Google's advertising technology has redistributed some of those traditional premium rates across a wider range of publishers.

In addition advertising production costs have been forced down via MediaSense's simple editing and mixing interfaces, providing near professional audio, video, web, print and mobile advertising to be created on a home PC. Industry figures, such as WPP's Chief Executive Martin Sorrell, have struggled to find a competitive response to MediaSense as they are burdened with large creative and production teams, professional editing suites and capital city offices.

Recently, Google and many major media conglomerates have become strong bedfellows as Google shifted its strategy from search to being the technology powerhouse behind the content. Since 2008 search has become increasingly fragmented and competitive. It is now widely accepted that as digital media has matured, and consumers have formed habits, a multi-tude of brands serving specialist content areas are the preferred destination rather than search. Whilst search has become part of the plumbing of the internet, it has also taken a back seat as consumers are tired of seeking new sources of information and increasingly rely on their brand habits.

Yahoo, AOL and MSN have all pursued hybrid strategies, favouring to ownership of the technology as well as production of content. This has proved highly successful for AOL, with its Time Warner links, and Yahoo with an executive team experienced in content production and programming. Both have established themselves as global media brands cross-media, competing on an equal footing with News Corporation. Microsoft has struggled to make this hybrid strategy pay with its roots still firmly embedded in technology. Google's acquisition of DoubleClick in 2007 proved a decisive blow MSN and other pretenders to the advertising thrown.

Crucially, today's News Corporation deal provides Murdoch's group with unique access to Google's sophisticated analytics and customer insight. This is reported to be the first time that Google has allowed direct access to its analytics tools. Industry experts believe that this insight will be applied across the News Corporation group to improve programming, advertising targetting and will spawn new revenue streams.


None of the above has happenned...yet.

Reports this week show the building blocks towards it:

Google Sets Sights on Old Media

Google Sets Its Sights On Domination


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