Google’s unchecked online dominance may finally be coming to a close. The company just had its 10 year anniversary and in that time it is hard to argue that they have not established monopolies in both online search and advertising. With its next three large initiatives, Android, Chrome and O3b, it has become clear that Google wants to own and monetize every action we do online. While most of Google’s projects have failed, its successes may now warrant antitrust evaluation.
The Justice Department is currently looking into whether it should launch an antitrust case against Google regarding its search advertising deal with Yahoo. It seems clear that a deal that would give 80+ percent of the search ad business to one company is bad for advertisers, consumers and innovation. Sounds like a monopoly too, which may be why the California Attorney General is also looking into the matter.
Then on Friday, the New York Times broke the Sourcetool.com scandal that may prove to be the straw that broke an empire. It appears as though Google’s algorithm may receive human assistance in the process determining what business are allowed to succeed online. One day earlier, CNet News uncovered Google’s log anonymization propaganda that proves the company plans on tracking the indivudual search history of its users indefinitely. Even more disturbing is the npGoogleOneClick5.dll plugin that is installed onto every existing browser on a computer when a user downloads Chrome. It then sends all URLs a user clicks back to Google, regardless of the browser you use. It fits the very definition of spyware and at minimum violates a certain code of ethics with consumers.
In only its second season AMC’s Mad Men has been hailed as the next Sopranos and was heavily decorated in both historic nominations and awards. The show portrays the infancy of the today’s advertising industry, its symbiotic relationship in both shaping and evolving with culture in the 1960s and the resulting ramifications on society. The show is a time-capsule of the U.S. norms forty years ago and can shock the viewer in how much has changed in regards to equality, truth and women’s role in the workplace. Even more eyeopening, how much the advertising industry has not evolved during the same span of time. The salaries have increased, but communication mediums and strategies are all the same. The question is whether the target has changed?
I straddle the dividing line between Generation X and Y that I believe provides a front row seat to the radical change in consumer habits that are redefining business. I never watched broadcast news and stopped reading the newspaper about eight years ago. Nearly all the TV I watch is on-demand, either through a DVR or online. With the lone exception of Fast Company, I always to prefer to read a magazine’s online edition compared to print. Why? I have become increasingly frustrated with the inability to link to similar content and immediately comment or direct friends to interesting information. Its been months since I tuned into radio, instead I listen to about an hour and a half of podcasts every day. Ten years ago, I would be seen as ignorant and uniformed of the world in which I live. Not today though. Instead I am highly connected, I just happen to exclusively direct my attention to interactive social media and entertainment. The question is what are advertisers doing about the shift?
Similar to the standard print advertisement, the online display ad accompanies content and comprises the main revenue source for publishers. However, the industry average click through rate for online display advertising is a dismal .1 percent. Its not working and online spend is slowing as the industry looks for ways to generate a reasonable ROI.
Advertising firm Avenue A/Razorfish announced a partnership with interactive social services provider Pluck to develop a social display advertising product they call AdLife. It is innovative in that it will weave social features such as consumer comments and reviews directly into the ad to provide third party recommendations to the target. This is a strong example of the burgeoning online interactive marketing pull strategy being deployed by leading firms. Similar innovation has yet to make its way to the online video arena as executives at the RBC Capital conference this week lamented on growing to the current TV spend level of $50 billion. Marketing success can be attained in the online environment, but it will require new strategies that include social aspects and loosening of control on the purchased ad space. Instead of buying ad space to direct a message at the consumer, advertising 2.0 is all about companies buying space to allow consumers to talk about and to them.
Last week Microsoft announced the launch of a new search advertising model that gives cash back for completed purchases. Live Search Cashback is an about-face to Google’s search advertising model that in my opinion provides more value to advertisers. Google search advertising is based on cost-per-click (CPC) where Live Search Cashback is cost-per-action(CPA). This means merchants only pay for an advertisement when it directly leads to a sale instead of merely interest (or accidental clicks).
I believe this would eradicate the click fraud issue with CPC. Moreover, surely the CPA fee charged by Microsoft is more than that of a Google’s CPC, which could provide more revenue to Microsoft once Live Search Cashback gains a foothold and it starts to retain some of the fee instead of handing it all to customers. Simply put, CPA makes more sense and I am all about innovating systems for greater usability and efficiency. While I dont think this alone will defeat Google, I do think it will push the industry toward more effective search and likely overall online advertising.
The Future of Search agrees and even looks at how Microsoft’s acquisition of Farecast could play a huge role. Results will crown the victor here and advertisers will determine whether quantity of clicks or quality wins out. Im betting on quality.
Thought this would be a good Friday post. The video is pure genious and two applications for the community…how to deal with client demands when theyre just flat wrong and a unique way to reach your customer…show them you understand their struggle.
Welcome to MakeMyLogoBigger.com. It was created by Agency Fusion who is a Web site development company that caters to designers. It is part of its new advertising strategy. While Im not a designer, I expect this video perfectly mirrors the day to day frustrations of designers with their clients. It is definitely edgy, but I think it works and would resonate well with their customers.
Additionally, has anyone recently run into issues with a client where they want to modify a release, pitch strategy or overall program that by doing so will completely kill its effectiveness? Any good ways to push back to prevent this from happening?
While reading Digital Daily today (is there a better tech blogger out there…I submit that there is not), I came across new happenings at everyone’s favorite fake YouTube channel…Lonelygirl15. You may remember her as the actress who posed as a 16 year old and was outed.
Apparently they are still making content and on top of that, pulling in sponsors. While the “show’s” traffic may justify advertising or product placement, I felt compelled to write how this would not be a good example on how clients can engage in a Web 2.0 environment. In my mind this is the exact opposite of transparency, conversely this could represent an excellent new area for product placement.
I’m actually confounded on how Lonelygirl15 can still exist. I suppose fake reality shows are just as popular online as they are on cable…thoughts?
Last week Microsoft 
