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Location: Geneva-Switzerland / Chandigarh - India
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Hello Guys,
Have an interessant article about Google strategy, just take a look, and tell me what do you think abou it.
Article By Lisa Baertlein
SAN FRANCISCO (Reuters) - Web search leader Google
Inc. (GOOG.O: Quote, Profile, Research) said on Monday
advertisers could now choose the Web sites that carry
their ads and it was introducing animated graphical
advertisements.
Google, which specializes in ads triggered by Web
searches that are aimed at sparking a transaction, is
also expanding its support of banner advertising. The
moves position it to expand into brand marketing ads,
called branded advertising, which could diversify its
revenue base.
"It's about time," Forrester Research analyst Charlene
Li said of Google's new site-targeting tool. She added
that the new animated ads would enable Google to
better participate in the multibillion-dollar
display-advertising market.
Users of the new site-targeting tool will be able to
buy ads based on the number of times they are shown, a
commonly used form of pricing, in addition to Google's
traditional plan that charges advertisers only when
Internet users click on ads.
The new programs are being used by a small number of
advertisers and will be rolled out more widely in
coming weeks.
During the most recent quarter, Google's gross revenue
was $1.26 billion -- virtually all of which came from
text-based Web search ads.
Yahoo Inc. (YHOO.O: Quote, Profile, Research) and
Microsoft Corp.'s (MSFT.O: Quote, Profile, Research)
MSN Internet unit get their revenue from Web search
ads, branded ads such as banners and "rich media" ads
that float and vibrate.
Google's shares have soared to more than $200 since
their $85 initial public offering price in mid-August.
"In order to keep that valuation up, (Google) needs to
get new revenues," Li said, echoing the views of
numerous financial analysts.
Users of Google's program that puts ads on Web sites
previously had to agree to have their ads run anywhere
on Google's content network. While scads of Web site
publishers received a windfall of advertising money,
the rules irked some advertisers who complained that
they had no control over the Web sites that carried
their ads.
Google's new site-targeting tool would allow
advertisers to choose among the content sites in its
network For example, advertisers could opt to have
their ads run only on iVillage.com (IVIL.O: Quote,
Profile, Research) , About.com (BOUT.O: Quote,
Profile, Research) and The New York Times Web site.
They also may choose themed sites. For example, a wine
company might decide to advertise on sites about
cheese, said Susan Wojcicki, Google's director of
product management.
Site-targeting users may choose to place text ads,
static image ads -- which Google rolled out last
summer -- or new animated image ads.
Users that choose site targeting may also decide to
price their ads based on the number of times they are
shown. Under the traditional pay-per-click model
offered by Web search advertisers like Google and
Yahoo, advertisers pay when someone clicks on their
ad.
Based on Google's formula, an advertiser who pays $5
to have its ad shown 1,000 times would compete with an
advertiser that pays 50 cents per click and whose ads
are clicked on 1 percent of times shown.
Yahoo also offers a program that allows search
advertisers to place ads on Web sites that carry
articles and other content.
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