The bulk of Google’s revenue is from advertising - and it appears they aim to use integration to reinforce their position as the online ads leader.
An interesting item from WARC suggests that Google is about to expand its advertising services, perhaps providing one-stop integration of media for advertisers.
MOUNTAIN VIEW, California: US newspapers, under pressure from an advertising exodus online, have decided to consort with the ‘enemy’ in a Google test that allows customers to buy space in 50 top US titles.
The trial is limited to a small group of 100 advertisers initially but, if successful, will be rolled out next year. The newspapers involved include those owned by Gannett, Tribune Company and the New York Times.
The system will work similarly to Google’s AdSense which sells ad space on thousands of websites via online auctions.
The idea of a single-point service to access multiple media advertising is not new in itself, but for Google to be doing this, rather than an agency, looks like an important shift.
Google’s AdWords and AdSense are very well-implemented tools allowing even the smallest businesses or individuals to target specific audiences online, and integrating print ads to their services should represent excellent value for advertisers.
Whether there is a long-term advantage for newspapers participating in this sort of deal doesn’t seem clear to me, but apparently newspapers are happy for any revenue.
Comments Owen Youngman, vp for development at the Chicago Tribune: “Every day in the newspaper we have a fair amount of space we set aside for ads that we are unable to fill. Google says they can bring us thousands of small advertisers for space we would otherwise fill with house ads, and we say ‘Great’.”
My own first experience with AdWords in Australia was excellent; they followed-up my brief inquiry with a very thorough proposal including some research on appropriate targeting and keyword identification. Even better if in future the service includes well-structured options for reaching an audience through other media.