Wednesday, September 26

Google, disruptive and dumping?

There's lots of talk of Google's push into ad-serving, with GoogleClick offering 'free display ad-serving' for publishers. So Google wipes out the economics of the ad-serving business in one short-sharp hit.

In the offline world there's an ugly word to describe these economics - "dumping" [offering a product below the costs of production to attack a market]. In digital we call it "disruptive".

Obviously it's not strictly free, as Google will make it's cut from the arbitrage in market pricing, but it wont charge the publisher for the priviledge. It's a master stroke if they get scale, which they surely will, and will crush ad-servering businesses all over the world. That perhaps, isn't quite in line with Google's moto "don't be evil". But it is certainly dispruptive (online), dumping (offline).

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