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Views On Googles Acquisition Of

By: Andy Beal

Rest assured, Im not going to bombard you with every news item that happens to mention - the last thing I want to be is the Entertainment Tonight of marketing news!

That said, Business Week has some additional thoughts on the deal.

Heres what you need to know.

While has started an ad exchange, thats not its strength

s main business isnt auctioning off advertising. If say, AOL had a relationship with Nike (NKE), would track the performance of that ad"how many times it was clicked on, how many times it was served, what sites people who clicked on the ad had recently visited. But it would not pair up Nike and AOL.

Google wont have the monopoly its competitors are implying
even with a Google-owned , publishers can still sell their display ads themselves and set the prices however they want. Advertisers arent going to Google because someone is twisting their arm, says Hallerman. Similarly, the advertisers and publishers wont stay with unless they find it beneficial.

But, it might have more knowledge than youd care for it to have
The threat is that Google could use what it knows about what publishers are charging for their ads"based on its ad tracking"to undercut prices. For example, people fear Google could tell advertisers: I know you are paying $5 per click on AOL. Advertise on YouTube and Ill let you have the same ad for less.

And Google has a habit of waiving fees in order to wipe out competitors

Google could offer to waive all the fees for customers, providing they either allow Google to deliver search ads on their properties or, if the client is an advertiser, buy search ads from Google.

And lastly, Google knows that is worthless, if they mess with the relationships

Google has a lot to lose by bullying advertisers or publishers"about $3.1 billion. Without the relationships, isnt worth nearly as much to Google. It will want to play nice.


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About the Author:
Andy Beal is an internet marketing consultant and considered one of the world's most respected and interactive search engine marketing experts. Andy has worked with many Fortune 1000 companies such as Motorola, CitiFinancial, Lowes, Alaska Air, DeWALT, NBC and Experian.

You can read his internet marketing blog at Marketing Pilgrim and reach him at [email protected].

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