Sunday, April 30, 2006

Advertising in a Google Universe

The World Advertising Research Center (WARC) and other data collectors around the United States have been scaring the advertising community with tales of doom for the past few years: If you don't shift to New Media sources pretty soon, Mr and Ms Marketers, your audiences for advertising are going to disappear. Or at least track in a new direction. Not good news to those television networks and newspapers that depend so heavily on advertising revenue, certainly, but an alert that is shuddering the integrated communication world more fiercely each day. Not to mention the directories services that made advertising more than just a yellow page.

Google, that initially upstart search engine gone Wall Street, has made things even more dicey by localizing their media offerings online. According to WARC, "Google's Local Business service has been undergoing limited US trials since December, with the participation of selected advertisers such as Barnes & Noble. The Google Local pilot enabled searchers using terms like 'bookstore New York' to auto-activate a map of Manhattan marked with small coffee-cup logos indicating the location of selected B&N stores." (WARC, April 3, 2006)

So, everyone in the old media chain is now quaking in their boots. And, like so many interactive/direct response media of the late 1900s, the Google advertising is billed on a price per inquiry (price per click thru) basis so it's more measurable than ever. This may be the great shift for service providers, retailers, as well as branded goods makers: The more ROI measures available to prove that internet advertising is working (or not in some cases), the more budget is going to underwrite those opportunities.

What WILL happen to those creative prime time TV spots or those glossy magazines pages? Food for thought.

No comments: