Google and the future of advertising
A significant reason for Google's incredible stock growth (it's at 358 now) is its advertising sales. And the company is talking about an advertising revolution, in this article in the NY Times, that will eventually force all other forms of ads to change. Maybe, maybe not.
"Why do I see women's clothing ads [on TV]?" Google's CEO said. "Why don't I see just men's clothing ads?"
The only way to have advertising more user-based is to collect information on the user, which is a little spooky, but accepted, with Internet use. But TV ads are already rather targeted, with ads for Viagra running during golf matches. Perhaps user information can be collected to make advertising more targeted. Hmm.
While Google's text ads have been far more successful than other web ads, I still wonder how many people actually click on any kind of Internet advertisement. I don't recall ever having done so. (The article says users click ads on Google 50 to 100 percent more than ads on Yahoo. But we know what 50 to 100 percent of zero is.)
I wish I could claim I'm never affected by advertising, but I do occaisonally watch TV, and I don't have TiVo. The jingles get stuck in my head, and I find myself telling co-workers or friends at the bar about the funny TV ad for such-and-such. That just never happens with the Internet.
With TiVo, though, perhaps something does have to change.
With the bigger picture, though, I wonder how (populist?) forms of entertainment such as non-TiVo TV and something I like to call "listening to the radio" will change as the middle class increasingly gets TiVo and satellite radio. Will the quality of the "free stuff" decrease? Will ads have to increase if advertisers want to pay less?
PBS has already resorted to actual advertisments, instead of just saying that a progam is underwritten by someone.
All I know is that I almost never click on Internet advertising, even Google, yet I do enjoy some catchy TV and radio ads.
"Why do I see women's clothing ads [on TV]?" Google's CEO said. "Why don't I see just men's clothing ads?"
The only way to have advertising more user-based is to collect information on the user, which is a little spooky, but accepted, with Internet use. But TV ads are already rather targeted, with ads for Viagra running during golf matches. Perhaps user information can be collected to make advertising more targeted. Hmm.
While Google's text ads have been far more successful than other web ads, I still wonder how many people actually click on any kind of Internet advertisement. I don't recall ever having done so. (The article says users click ads on Google 50 to 100 percent more than ads on Yahoo. But we know what 50 to 100 percent of zero is.)
I wish I could claim I'm never affected by advertising, but I do occaisonally watch TV, and I don't have TiVo. The jingles get stuck in my head, and I find myself telling co-workers or friends at the bar about the funny TV ad for such-and-such. That just never happens with the Internet.
With TiVo, though, perhaps something does have to change.
With the bigger picture, though, I wonder how (populist?) forms of entertainment such as non-TiVo TV and something I like to call "listening to the radio" will change as the middle class increasingly gets TiVo and satellite radio. Will the quality of the "free stuff" decrease? Will ads have to increase if advertisers want to pay less?
PBS has already resorted to actual advertisments, instead of just saying that a progam is underwritten by someone.
All I know is that I almost never click on Internet advertising, even Google, yet I do enjoy some catchy TV and radio ads.
posted by bp at
10:58 AM
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