Tuesday, April 17, 2007

REVENUE STRATEGY - GOOGLE

1) Google announced three major deals, promising to extend its reach in advertising for radio, television, and the Web:
a) A deal with Clear Channel (CCU) to serve 30-second audio ads across the company's 675 AM/FM radio stations.
b) A $3.1 billion agreement to acquire DoubleClick, a leader in online ad placement and tracking.
c) A contract to deliver TV ads to EchoStar Communications' Dish Network.
2) DoubleClick, serving and tracking ads from big-name advertisers on large Web properties, gives Google an opportunity to get into this premium market. Google could leverage its technology to sell display ads on sites with which DoubleClick has a relationship.
3) A Google-owned DoubleClick could give too much control to a powerful search engine. Google could use what it knows about what publishers are charging for their ads—based on its ad tracking—to undercut prices.
4) Google could use DoubleClick's connections to further its lead in search. Google could offer to waive all the fees for DoubleClick customers, providing they either allow Google to deliver search ads on their properties or, if the client is an advertiser, buy search ads from Google.
5) If Google gets the ailing radio advertising industry better prices, it will get more space to sell. The same goes for television advertising, print, and all the other places where Google could leverage its large auction network to sell ads.

Now who will clear the FOG (Fear of Google)?

[Click here for full story at: BUSINESSWEEK.COM]

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