09 Mar Where Google Goes, Trends Follow?
Google’s $3.1 billion dollar acquisition of advertising giant DoubleClick looks set to be approved by the EU any day now, despite news headlines to the contrary. But what will this merger mean for everyday small-to-medium business owners?
Expect online advertising to gain even greater credibility and popularity as Google lends it’s considerable brand clout to DoubleClick’s flashier display ads. Google’s foray into pay-per-click advertising with its simple user-friendly Google Adwords system has seen it become the major player in online advertising for SME’s, but even Google knows Adwords doesn’t fit all business needs – a rounded online campaign needs many hooks – so is seeking to cover more bases by tackling more sophisticated digital advertising through DoubleClick.
The Google/DoubleClick merger is just the latest in series of moves by giant online labels to grab a bigger slice of the lucrative online advertising pie. Microsoft Corp bought aQuantive for $6 billion, Yahoo Inc acquired BlueLithium for $300 million, and Time Warner Inc’s AOL unit bought Tacoda for an undisclosed ( but presumably massive) amount.
The bigger picture? Multi-media advertising is definitely on the rise, and these companies are betting big bucks that everyday businesses will be swept up in this latest trend.
To spread its advertising net even wider, Google is also hoping to replicate it’s Adwords success with Google TV ads. Already in Beta release in the U.S, Google has been working with the second-largest satellite operator in the United States, Dish Network, on technology that allows advertisers to see how many people are watching their adverts via information garnered from their set top box. Speculation is rife that Google will soon expand their TV ad network to the UK, where Google already has an existing arrangement with BSkyB, under which it is the satellite broadcaster’s search-and-video technology partner. BSkyB is keen to improve its targeting of its advertising, and Google knows an opportunity when it sees one.
But Australia? Don’t expect Google TV ads to be in a hurry to expand our way – apart from our remarkably smaller population base, we’ve been reluctant to fall for pay TV’s lure. 58.4% of all American homes have cable, whereas only 23% of Australian homes subscribe to paid TV services. So even if Google TV ads rolled out in Australia tomorrow, their effectiveness would be in serious doubt.
But the message Google TV ads is touting is still a compelling one. They say the visual appeal of video commercials can help illustrate you brands ideals, explain a complicated product or connect with buyers better than any other medium. And tracking the cut through and ROI of your ad is important. But the good news? You don’t need to hold your breath for Google TV ads to arrive Down Under or pay expensive TV broadcasting fees to achieve any of those things.
There’s already a way to tick all those boxes, and via a method that Google’s new acquisition already distributes. It’s web video, and it’s an affordable technology that’s becoming more accessible by the second as broadband users increase. It’s the cheapest way to get a video commercial to the masses, and until Google TV ads arrive here it’s probably your most viable way of rounding out your online marketing presence. Expect online video advertising to be the big buzz area of 2008 – over here at Soul Arch Media & Marketing we’re gambling on it too.