Digital Marketing

How Google Plans to Control TV Advertising and Crush Agencies

AdWeek ran an interesting story a few days ago about Google’s foray into television advertising. As I’ve been saying for years, Google’s ultimate plan is to be the middle-man for all advertising, everywhere. 

There are clearly inefficiencies in the buying and selling of traditional media. It requires multiple phone calls and emails and spread sheets. Why? Because sellers of media will not make their inventory and their pricing transparent, believing (perhaps correctly) that to do so will result in lower prices.

The Internet Puts People Out of Business

Let’s see if there are other industries that were based in large measure on a slow, inefficient buying process with a lack of transparency. How about travel agents, financial agents, and insurance agents?

The Web does a lot of things well, but its long-term legacies will be instant knowledge and the creation of efficient markets in either broad (amazon, ebay) or targeted (expedia, eTrade, Geico) categories.

Google Has Chosen Advertising as Its Market

To me, the agency community seems frighteningly slow to realize that Google is looking to take away all agency services that are not strategic and creative, and replace them with Google-owned software. Google Ad Planner. Google Analytics. Google Web Optimizer. And now Google Radio, Print, and TV ad insertions. ALL of these are services that agencies could charge for as recently as 30 days ago in some cases. 

TV is the Final Frontier for Google

google tv1png 165c397127 pixels How Google Plans to Control TV Advertising and Crush AgenciesThere are 2 components to Google’s TV strategy that if successful, will put a ton of broadcast media reps (buyers and sellers) on the street.

First, Google wants to deliver their menagerie of hundreds of thousands of advertisers directly to TV networks – and especially local stations. Imagine if your local CBS affiliate only needed 1 salesperson instead of 7 because most ads were bought direct through a Google interface. That’s the plan. 

Second, Google wants to deliver precise, real-time results tracking for television. They want to do away with Nielsen and all forms of panel and meter measurement. Already, Google is serving ads in the EchoStar satellite network, and providing second by second data on which ads are watched, skipped, paused, etc. They then combine data from online marketing and print and radio campaigns to provide advertisers with a comprehensive report on which media tactics and which creative executions are driving sales. 

Are there any clients out there that might want to know precisely how their TV fares versus their radio and print? Ummm, yes. 

Old Media is Denying Their Own Peril

What’s equally amazing and aggravating in the AdWeek article are the quotes from all manner of old guard TV folks and their hand maidens. They point to the newish effort by cable companies to join forces to provide the type of online marketplace and measurability for TV that Google is offering. The problem is, it doesn’t matter how great Project Canoe is (which is literally what it is code named – so much for futuristic nomenclature) – they have a grand total of zero advertisers on board. Whereas, Google has hundreds of thousands of marketers logging into their system every day. 

Ultimately, efficient markets will win. It’s as inexorable as water flowing to a point of least resistance. Even Forrester is ignoring the eventuality of Google getting a major foothold in the traditional media buying space, as analyst David Graves was quoted “It seems that the television establishment, both buyers and sellers, are likely to want to buy it person to person.” Not for long, and when Google opens up the billions of dollars in spot TV revenue pent up in the mouse clicks of their PPC user base, watch how fast those “face to face” advocates start learning how to buy and sell remotely.

 

Other posts about Google and its plan to squeeze out agencies>>

 

5 Great Workshops to Train Agencies on Digital Marketing>>

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  • http://tysoncrosbie.com tysoncrosbie

    I’ve often said it is google’s job to bring us what we want when we want it, seems to apply to tv ads as much as anything else. :)

  • http://www.tysoncrosbie.com tysoncrosbie

    I’ve often said it is google’s job to bring us what we want when we want it, seems to apply to tv ads as much as anything else. :)

  • thejpl

    Google is simply transforming into the medium by which all advertising will proliferate. I have no doubt that Google will dominate in this space as well, but much like SEO, they cannot own the network and sell the strategy. What agencies will be quick to learn is that they will need to sell “new media” strategies, not time slots. It makes you wonder why someone with the appropriate media partnerships isn’t creating their own content-casting service that targets TV with small PPC type ads. I’m curous how Google (or anyone) will sell conversions in said domain? Are all TV’s going touch screen?

  • thejpl

    Google is simply transforming into the medium by which all advertising will proliferate. I have no doubt that Google will dominate in this space as well, but much like SEO, they cannot own the network and sell the strategy. What agencies will be quick to learn is that they will need to sell “new media” strategies, not time slots. It makes you wonder why someone with the appropriate media partnerships isn’t creating their own content-casting service that targets TV with small PPC type ads. I’m curous how Google (or anyone) will sell conversions in said domain? Are all TV’s going touch screen?

  • http://www.talkingdish.com/ michaeljbarber

    What’s even funnier about this article showing up on AdWeek is that we (digital folks) have known this was coming for years. It’s only recently that “old guard” publications – like AdWeek – are just investing in digital news. Take for example the recent AdWeek article about utilizing the Cloud. Hello! Every digital-orientated publication around the World has already talked about the Cloud and its implications to developers and marketers. Why did it take AdWeek several months to provide this type of information to their readers?

    It’s time for AdWeek to get it together and start moving their publication where the market is going. I am surprised every week when the printed publication shows up on my desk because I don’t know how it is profitable to publish stories that were published days ago on their web site.

    At the end of the day, Google is responding to simple economics. Organizations need cohesive ways to streamline their marketing/advertising expenses. Providing a one-stop shop to purchase and track your media/advertising expenses is not only a smart business decision for Google, but smart for marketers who need to get the same bang for their shrinking marketing budgets.

  • http://www.talkingdish.com michaeljbarber

    What’s even funnier about this article showing up on AdWeek is that we (digital folks) have known this was coming for years. It’s only recently that “old guard” publications – like AdWeek – are just investing in digital news. Take for example the recent AdWeek article about utilizing the Cloud. Hello! Every digital-orientated publication around the World has already talked about the Cloud and its implications to developers and marketers. Why did it take AdWeek several months to provide this type of information to their readers?

    It’s time for AdWeek to get it together and start moving their publication where the market is going. I am surprised every week when the printed publication shows up on my desk because I don’t know how it is profitable to publish stories that were published days ago on their web site.

    At the end of the day, Google is responding to simple economics. Organizations need cohesive ways to streamline their marketing/advertising expenses. Providing a one-stop shop to purchase and track your media/advertising expenses is not only a smart business decision for Google, but smart for marketers who need to get the same bang for their shrinking marketing budgets.

  • http://www.cuffmedia.co.uk/ David Cuff

    Google is an advertising business that desperately needs to grow fast now as it hits the top of the S curve. The global TV advertising market offers the best prospect of growth and is there for the taking. Media Buying companies are essentially analogue businesses (or silos) managed by pseuds who have built fiefdoms based on anti-competitive, manual and over complex trading models which are more akin to 1970s style Trade Union bargaining than 21st century business. Middle men only prosper when they can add value. Media Agencies have created the conditions for their own demise in this area.

  • http://www.cuffmedia.co.uk David Cuff

    Google is an advertising business that desperately needs to grow fast now as it hits the top of the S curve. The global TV advertising market offers the best prospect of growth and is there for the taking. Media Buying companies are essentially analogue businesses (or silos) managed by pseuds who have built fiefdoms based on anti-competitive, manual and over complex trading models which are more akin to 1970s style Trade Union bargaining than 21st century business. Middle men only prosper when they can add value. Media Agencies have created the conditions for their own demise in this area.

  • http://www.savantcreative.com/blog Bruce Kersten

    It’s funny how ad agencies started out as media buyers, making 15%, and then they introduced creative services in order to add value and prevent themselves from turning into a commidity. As Google takes control of media, agencies will find themselves in the same spot again. I think agencies will have to get more into profit and marketing strategy in order to survive.

  • http://www.savantcreative.com/blog Bruce Kersten

    It’s funny how ad agencies started out as media buyers, making 15%, and then they introduced creative services in order to add value and prevent themselves from turning into a commidity. As Google takes control of media, agencies will find themselves in the same spot again. I think agencies will have to get more into profit and marketing strategy in order to survive.

  • http://twitter.com/andismit/status/ Andrew Smith

    Google Shared: How Google Plans to Control TV Advertising and Crush Agencies | Digital Med.. http://tinyurl.com/59zuqp

  • http://twitter.com/charissae/status/1253842716 charissa

    just wondering what Google TV ads will do to Ad agencies? http://tinyurl.com/4c2wty http://tinyurl.com/59zuqp

  • http://nowwecan.com/ kecuk

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  • http://nowwecan.com kecuk

    i hope , your post helpfull for me.. thanks GBU

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