The way a gourmet chef never tries out his own cuisine, Google seems to have this cultural allergy to mainstream advertising. Certainly a strategical (and successful) change from first dot com era when new and promising start ups nearly went all broke paying for super bowl ads and other mainstream advertising gimmicks.
Its Google co-founders Larry Page and Sergey Brin decided to go against the free spending mode and remained a marketing miser while accumulating a cash cow that now allegedly stands at $12.5 billion. While rewriting the Internet history Google has also sold more than $30 billion advertising solution sine 2001 and thus becomes a household name without splashing its logo at Manhattan or prime time television.
How does Google ad model work?
Google primarily shows its text based advertisements on the relevant search engine result pages and other publishing properties. It has started keyword auctions where the highest bidding advertiser heavily trafficked websites and the lowest bidder in less popular destinations.
Google has also started selling ads to YouTube videos and mobile phone compatible websites/blogs. But this exercise is yet in its infancy. Google being questioned, opportunity for newer players.
The model, some feel, is showing cracks. Publishers mostly don’t know where there ads will actually appear. So, advertisers despite of paying moolah to the advertising agency (here: Google) do not know where they will appear.
Newcomers like Quigo prepares an a la carte menu for its advertisers and ask them where they want to be advertised. Advertisers can specify which pages they want to get appeared on instead of taking what they get (ref: Google)
Google’s purchase of Doubleclick sparks fears!
