Friday, February 23, 2007

Andrew Pascoe Goes Sputnik while Google Earth Enters Car Dealerships


jagXKR pls
Originally uploaded by benbarren.
So it appears google australia has overtaken sensis in online advertising; I wonder if this is because google participated ie was audited for the ABVS numbers or if it is an analyst estimate. I'm sure Mr Pascoe (congrats on new role) will know or some smart bunny. (i note he mentions PWC did numbers this time... previously the google number was a guess is my understanding....)

24 hours away at the centre of the digital universe, car dealers are being taken into the Revenge of the Nerds version of automotive 2.0 advertising; It's Second Life meets a Saturday sausage sizzle end of month sale at your local auto dealer. I have 2 buzzwords to summarise the google strategy : "Video" + "Behaviourial" (targeting) It's also why Fox just bought Strategic Data Corp to monetise MySpace better. "Driving up the effective yield" as the analysts call it, or how you phrase your business plan when presenting to accountant. (such has been my week..)

Their VP on PaidContent
: “The place that we see the most success with brand ads is when it comes to integrating them with the entire search process. [The campaign by Goodby Silverstein for the Saturn Aura] was aimed at people who were in the auto genre of certain content sites, we placed ads that looked like a static video that when you clicked on it, it started playing. It then took them to a Google Earth Map and you had this notion that you flying over the globe and it ended up looking like you were flying into the Saturn dealership and you would be introduced to the showroom. It was a very useful way to get a brand message across. The ultimate thing with brand advertising is ‘Am I going to get more customers, am I going to get more information, is the customer going to have a better brand experience?’”

Blogpond quoting BRW quoting ABVS
1. Google: $206 million (20%, up 4%) revenue growth 108%
2. Sensis: $192 million (19%, down 4%) revenue growth 36%
3. Fairfax Digital: $115 million (11%, steady) revenue growth 77%
4. Seek: $104 million (10%, steady) revenue growth 65%
5. NineMSN: $92 million (9%, down 2%) revenue growth 39%
6. Realestate.com.au: $70 million (7%, up 1%) revenue growth 79%
7. Yahoo!7: $42 million (7%, steady) revenue growth 75%
8. Carsales.com.au: $37 million (4%, up 1%) revenue growth 85%
9. News Digital Media: $34 million (3%, down 1%) revenue growth 26%
10. The Rest: $128 million (13%, up 1%) revenue growth 80%

As an aside note : The bigger these markets get, history has shown the larger players get more share as growth continues. The longer the tail, the more the demand for hits. (the greater the media fragmentation, the higher the advertiser demand for mass market Sunday night Ch7 spots becomes....)

If you exclude publishers using google's self service technology, there are no independent/private players on the list other than those contained in "The Rest". Basically if you rely on general online advertising, aren't using google, this will make it increasingly harder to get into an online advertiser's mind, without large (probably vertical) reach. (or price undercutting for a given product eg directories : truelocal/dlook) Luckily what the major players lack (minus GooTube + FoxSpace) is new advertiser/consumer products. That's where the gap is. Even more so on the advertiser infrastructure side. ie "Increasing the effective yield" on The Rest ala The Ansearch model. Stating the obvious on a Friday night arent i. it's good the bets are raising tho..

Henry is always fun to read re Goog's $50 assault on Office : "At the same time, by targeting Microsoft's crown jewels, the folks in the Googleplex are also risking not only failure but their own monopolistic dominance of their core business--search. Selling and servicing technology solutions is a fundamentally different business than selling and providing advertising solutions, and will eventually require the creation of an entirely new sales and service organization. No company in history has dominated the hearts and minds of both marketers and IT buyers, although several have tried. Even with Google's awesome talents and power, therefore, success is far from guaranteed. Especially because the opponent in question, a sleeping giant that has so thoroughly dominated its industry for more than a decade that not one but two governments were forced to devote extraordinary resources to trying to stop it, won't likely give up without a fight."