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. .