Google and their advertising !
“others are fighting for scraps” (other advertising agencies)
Google is set to make £900m in the UK this year (2006)
Nearly every £1 of £2 spent by advertisers online raises some serious questions about the market dominance
Andy Duncan highlighted that the “structural change “in the ad industry will lead to Google earning more then it its corporation (£800m estimate)
How comfortable is the UK advertising agencies with Google to carry out Digital advertising?
In TV land there is a huge furore over ITV controlling around 45% of the ad market - and it has the regulatory mechanism of contracts rights renewal to keep it in check.
If you want dominance take a look at Google:
According to the Internet Advertising Bureau the UK online ad market will crack £2bn this year.
Search marketing consultancy Greenlight estimates that search advertising accounts for around 60% or more of total online ad spend (maybe around £1.3bn this year).
And Google takes the lions share (60% to 70%) of that, completely dominating next closest rival Yahoo!, with MSN much further down the search advertising revenue food chain.
Last year Google scrapped the 15% discount that was usually offered agencies by using its advertising auction system and replaced it with a new net pricing system.
This caused a furore among many agencies.
"More transparency and put everyone on a level playing field using the auction system".
(Damian Burns-Google's head of agency relations for Europe Middle East and Africa)
Microsoft has run into trouble in the US and Europe over market dominance and Apple too has its share of potential legal wrangles over opening its music platform.
But not much, so far, has been said about Google's position. For example, can it even be regulated, and, more to the point if it has such a great model and has taken full advantage of it over competitors why should it?
My views
The internet has become a vital part of recent day’s society. It’s easily accessible and is more attractive then the usual adverts in the newspapers and leaflets. Its has grown to become popular due to it being so convenient, you can use it to find out information about anything at any time of the day. I think that google will empower the advertising agency as they know that they can make a lot of money, however I feel that it isn’t fair on other smaller advertising agencies as they will be facing great competition as google is seen to be a monopoly.
Google is set to make £900m in the UK this year (2006)
Nearly every £1 of £2 spent by advertisers online raises some serious questions about the market dominance
Andy Duncan highlighted that the “structural change “in the ad industry will lead to Google earning more then it its corporation (£800m estimate)
How comfortable is the UK advertising agencies with Google to carry out Digital advertising?
In TV land there is a huge furore over ITV controlling around 45% of the ad market - and it has the regulatory mechanism of contracts rights renewal to keep it in check.
If you want dominance take a look at Google:
According to the Internet Advertising Bureau the UK online ad market will crack £2bn this year.
Search marketing consultancy Greenlight estimates that search advertising accounts for around 60% or more of total online ad spend (maybe around £1.3bn this year).
And Google takes the lions share (60% to 70%) of that, completely dominating next closest rival Yahoo!, with MSN much further down the search advertising revenue food chain.
Last year Google scrapped the 15% discount that was usually offered agencies by using its advertising auction system and replaced it with a new net pricing system.
This caused a furore among many agencies.
"More transparency and put everyone on a level playing field using the auction system".
(Damian Burns-Google's head of agency relations for Europe Middle East and Africa)
Microsoft has run into trouble in the US and Europe over market dominance and Apple too has its share of potential legal wrangles over opening its music platform.
But not much, so far, has been said about Google's position. For example, can it even be regulated, and, more to the point if it has such a great model and has taken full advantage of it over competitors why should it?
My views
The internet has become a vital part of recent day’s society. It’s easily accessible and is more attractive then the usual adverts in the newspapers and leaflets. Its has grown to become popular due to it being so convenient, you can use it to find out information about anything at any time of the day. I think that google will empower the advertising agency as they know that they can make a lot of money, however I feel that it isn’t fair on other smaller advertising agencies as they will be facing great competition as google is seen to be a monopoly.
posted by xxprascillaxx at 3:19 AM
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