Google Announces Profits, Gives Yahoo Some Leverage…Proves Online Advertising Is Here To Stay

we all are aware of Microsoft’s $43 Billion bid to buy yahoo. Yahoo’s last minute supposed back-door negotiations with Newscorp & AOL for a better offer and a controlled test of google ads in it’s search.

Given a a weak economy and a plummeting dollar value, Microsoft thinks it’s $43 Billion bid to acquire yahoo is very much justified.

With all this going on??¦Google this Thursday reported a 42 percent increase in its profits and revenue.

Further more Google’s CEO Eric Schmidt even said his company reviewed various scenarios on the economy and concluded that even if the economy worsens, its search advertising business will still attract companies who would like to reach customers via efficient means

As you see there is no slowdown for google or the online advertising market as such.

I could not make it to Ad-Tech in San Francisco but did glance their advertiser lineup.. I was surprised by the increased number of innovative online advertising companies participating at ad-tech.

What do I infer from all this?

Statement from Google proves that Internet is a viable medium that can be leveraged to reach out to a large set of prospects, cost effectively.

• Companies are still exploring search, hence as advertising dollars shrink, companies will deviate from branding and focus more on conversion effectiveness.

• The primary barrier that most companies have is to communicate with people. Given the production costs of the ad copy, video, audio, communication costs will continue to rise. Yet at the end the high production costs will pay off, given the size of the audience reached due to these endeavors.

• With shrinking budgets more and more companies will compete for top positions on search engines, effectively driving the click through rates higher and higher( More profits for Google), seasoned media buyers will move away to other alternatives of online advertising, which in turn will open up more opportunities for small companies; whose innovative alternative solutions will dominate the market place.

• Smaller and newer ad companies will compete to get a better market share. In the process, with better planning and responding timely to baits small business owners and marketers will end up getting free or cheap media.

• Smart marketers will make use of these performance marketing companies to spread awareness instead of straight sales. Click conversion will take a back seat. .

• Marketers will seek soft responses to their offers. Armed with highly targeted messages they will make these marketing companies to provide solutions that can give more insights into their prospect’s behavior. .

Looking at the Competition

A common bragging claim some businesses have is that they never look at the competition.

This statement attempts to convey both a rugged individuals, a faith in one’s own product and a dismissal of the competitor.

While this may seem like confidence on the surface it is actually quite self defeating.

When it comes to successfully operating a business it is critical to keep your eyes wide open for what is working, what is not working, what trends are popular and what marketing strategies are working.

This involves looking at looking at all sources of information including competitors.

No, this does not mean that you seek to copy a competitor. Copying generally never works as the “copycat” never comes off as anything more than a weak derivative of the real thing.

What it does mean, however, is that you look at the strong points of your competitor and analyze why these strong points are working and how to integrate variants of them into your own approach.

Yes, it can be somewhat difficult at times to acknowledge that a competitor is doing something better than you are but an honest assessment of one’s business approach is far better than sitting in the proverbial dark about one’s shortcomings.

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How to Effectively Outsource Without Being Eaten Alive By Your Service Providers

Outsourcing is defined as retaining services from an individual or company that would normally be done in house. Examples of some things that may be outsourced are payroll administration, benefits administration, accounting, information technology and website management.

It has also become common in recent years for some companies to outsource some administration and secretarial functions as well.

Outsourcing some functions makes sense from a financial standpoint for many small and medium sized businesses. If you enlist the services of a freelancer or outsource your job you only pay for the work performed.

This provides advantages and cost savings in several areas. You will not be responsible for payroll taxes, benefits, office space for the employee to work, hourly or salary pay is eliminated. Essentially you only pay for the hours and work you need.

When done correctly outsourcing can be an extremely effective way to get all types of essential duties and tasks done efficiently in your business.

There are many ways to find outsourcing help. If you are looking help with a computer software problem, need a new application or special services, check out Rent-a-Coder.

You can submit your bid request and you will get bids from experts in the field. You go through the bids and look at the credentials of the bidders and make your choice. It is easy and the results can be excellent.

Another user friendly site to find freelance help is guru.com. Same system applies, you post your project, qualified candidates bid on your job, you can request specific information in the bids, qualifications, credential, samples of work and references.

Most freelancers on this site have extensive profiles that you can access to determine the best fit for your work. Freelancers pay a fee each month to be considered premier service providers.

Elance.com is also another one that allows you to post your project and choose from a variety of professionals that will complete your work in the allotted time in the budget you require.

Outsourcing through these sites and the others out there is fairly user friendly, but buyer beware, it is easy to get bogged down in the bid process, reviewing candidates and making the selection of the vendor, if you spend too much time completing these steps it loses cost effectiveness quickly.

Time is money and the more time you spend finding your outsource help, the less money you are saving.

Also know the terms of the site you are using, know what you are paying for and from whom you are buying the service. What happens if you are unhappy with the work once it is completed? Do you have recourse if it does not get finished, sure you don’t pay but then you must start the process over, this does not save money in the long run, and it can be extremely frustrating.

If you are careful, take the time to get to know your vendors, and develop long term relationships with the outsourcing vendors you like, you can make outsourcing much of the mundane everyday tasks a successful part of your business.