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Google has built the largest advertising company in the world, and it's only been public for five years. Is the search giant slowly building a network of advertising inroads into our lives?
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Google Who?
Google, Inc.
230 million search queries per day worldwide
Available in 117 languages (including Pig Latin, Klingon, and Elmer Fudd)
Market Cap as of 1/10/08: $205 billion Market Cap as of 9/17/09: $156 billion
Google is Not a Monopoly
But it might as well be. It has 68% of all Web searches. Closest competitor is Yahoo (16%), who’s losing
share. Bing is 11%. Google has the widest moat of any business
today.
"Berkshire Hathaway Chairman Warren Buffett and Vice Chairman Charlie Munger praised Google Inc. during a press conference Sunday, saying the Internet giant has a strong business that can't be matched or taken away by rivals. "Google has a huge new moat," Munger said. "In fact I've probably never seen such a wide moat."
Largest Public Companies
COMPANY SIZE (MARKET CAP)
Microsoft $224 Billion
Wal-Mart $192 Billion
Apple $165 Billion
Berkshire Hathaway $158 Billion
Google $156 Billion
AT&T $155 Billion
Toyota $129 Billion
Coca Cola $122 Billion
Pfizer $110 Billion
Restaurants
COMPANY SIZE (MARKET CAP)
McDonald’s $60 Billion
YUM $15 Billion
Brinker Group $1.5 Billion
Wendy’s/Arby’s $2.5 Billion
Darden Restaurant Group
$5 Billion
Total: $84 Billion
Google $156 Billion
Booze
COMPANY SIZE (MARKET CAP)
Diageo $40 Billion
Brown Forman $7 Billion
Constellation Brands $3 Billion
InBev (Budweiser) $75 Billion
Molson Coors $9 Billion
SAB Miller $38 Billion
total $172 Billion
Google $156 Billion
Cigarettes
COMPANY SIZE (MARKET CAP)
Phillip Morris International
$93 Billion
British American Tobacco
$64 Billion
Altria (PM in the US) $ 37 Billion
total $194 Billion
Google $156 Billion
Shipping
COMPANY SIZE (MARKET CAP)
UPS $70 Billion
FedEx $25 Billion
Total $95 billion
Google $156 Billion
World’s Most Recognizable Brands
COMPANY SIZE (MARKET CAP)
Coke $122 Billion(since 1886, over half of carbonated beverages worldwide)
McDonald’s $60 Billion(since 1954, 31K restaurants in 119 countries)
total $ 182 Billion
Google $156 Billion
Media Companies
COMPANY SIZE (MARKET CAP)
Washington Post $4.5 Billion
Gannett $2.3 Billion
NY Times $1.5 Billion
CBS $8.5 Billion
Comcast $49 Billion
Clear Channel Outdoor $2.5 Billion
Lamar $2.5 Billion
total $70.8 Billion
Google $156 Billion
HOW DID THIS HAPPEN?
Obviously through an exhaustive variety of advertising options allowing you to target anyone, anytime, online or offline.
WRONG!
How Does It All Work?
Google Adwords: advertising program started in 2002.
3-Minute Summary
http://services.google.com/awp/en_us/breeze/7914/index.html
It’s Not About the Format.
Text ads are succinct and efficient, but Google isn’t the first to recognize that. Newspapers have known it (and clung to it) for a century.
Google perfected the delivery of a message at the moment you want to hear it.
“Perfected” – not invented. They stole it from Yahoo!
2007 FLASHBACK!
“Google plans to invade your space. “
Print, radio, TV – it’s coming after everyone.
Google wants to own advertising. Google wants to be the ad agency to the world."
2007: Google on the Radio
Four years ago, Google purchased dMarc Broadcasting. dMarc connected advertisers directly to radio stations through its automated advertising platform.
Google integrated dMarc into Adwords and rolled out...
LONG STORY SHORT
Google knows TV isn’t hurting nearly as bad as radio and
newspapers. Splintered, but not abandoned.
Google thinks TV still has a bright future, and that
newspapers and radio don’t.
LONG STORY SHORT, cont.
GOOD NEWS: Google doesn’t want its fingers in your pie
anymore.
BAD NEWS: That may not actually be good news.
WHAT NOW, THEN?
2009, the message is refined:
Google wants to own communication.
It wants to be wherever your attention is. It knows that you aren’t necessarily wed to traditional ad-carrying media.
Google: Next-Gen Social Media?
If “social media” is engaging customers where they’re already spending their time…
….then Google has big plans for you.
The Anna Nicole Smith strategy
If you're showered with enough wonderful and expensive gifts, you'll jump into bed with your sugar daddy when the time comes to do so.
What would ya say ya do here?
-Actual Work- Google Docs – Create, edit, store and
download Word, Excel, Powerpoint, PDF documents online and free.
Cloud computing. Apps run & docs are stored somewhere else. Easy to store your files in one place. (Works for me!)
Chrome OS. Based on Linux. Easy integration of all Google services.
What would ya say ya do here?
-Actual Work- Drives down cost. You don't have to pay $269
for MS Office if you don't want to. Computers themselves get cheaper with no MS license fee.
Eliminates headaches & simplifies computing(Less hard drive space, less memory, less processing power)
Bottom Line: Google wants your attention while you’re workign.
What would ya say ya do here?
-Email- Gmail. Serves ads to
emails. POP mail access –
consolidates all your email accounts. Also lets Google serve ads in front of emails that aren’t theirs!
Postini –antivirus/spam filtering. Message archiving.
Bottom line: While you're emailing, Google wants a piece of your attention.
What would ya say ya do here?
-Talk on your cell phone- Google has Google Voice. Waitlist. FREE. http://www.google.com/googlevoice/about
.html (Listen In, Taking Calls, Phone Routing,
Conf Calling, Call Record) Lots of extras you currently pay for – all
free. Bottom Line: Google wants to be a part of
your phone conversations.
What would ya say ya do here?
-Use the Web-
Google Chrome
Web browser, fairly new. Known for blazing speed. Integration of all those Google features will be coming.
What would ya say ya do here?
-Photos-(view/edit/share)
“Picasa helps you organize, edit, and share your
photos. It's free, and easy to use.”
What would ya say ya do here?
-Music-????????????????????
Why no music-player application? Google is, for now, very friendly with
Apple. (The enemy of my enemy (Microsoft) is my friend.)
Apple DOMINATES the online music business. Good place for Google to hang back right now.
What would ya say ya do here?
-Facebook- Google-Microsoft battle
to invest. Google lost.
Google got Myspace instead.
Myspace = Detroit -- used to be a boomtown, now it's just scary and dying.
FRIEND OR FOE?
Friend or Foe? Well, seems awfully friendly now, that's for sure. But you can be sure that this is not charity work on Google's part.
You don’t build (and/or buy) this kind of functionality for no good reason, just to be nice.
Google is not the government. (Obviously – everything runs smoothly and works well).
An offer you can’t refuse?
You will be granted favors, but there will come a time to pay back...by accepting advertising.
What’s Up Google’s Sleeve?
Google Says:
“Google is in the connection business. Google is in the business of
connecting buyers & sellers.”
What’s Up Google’s Sleeve?
READ BETWEEN THE LINES.
“Google is in the connection business. Google is in the business of connecting
buyers & sellers.”
SELLERS: AdvertisersBUYERS: Everyone else.
The sellers’ messages WILL be delivered.
Google Just Getting Warmed Up?
Google is already a $155 billion company
Google advertising is targeted only two ways: search engine results and contextual website
placements.
THESE ALONE have built the largest advertising company in the history of the world in five short years.
BUT... imagine how even those big revenue streams could spike if Google expands those targeting options and advertising avenues further.
What’s Up Google’s Sleeve?
Theory Alert! Email. My email is already scanned by
Gmail (all of it, not just the Gmail).
Could Google start letting marketers target ads to my email based on the things I talk about in my email, keywords that appear frequently, the types of URLs I forward along, etc.?
(Doesn't have to be personally identifiable, just aggregate data).
What’s Up Google’s Sleeve?
Theory Alert! Phone. Google has voice recognition down as
well as anyone (Try Goog411). All calls are recorded.
If you're using Google Voice, you've actually given them ALL YOUR PHONE NUMBERS.
So isn't it possible that the voice data could certainly be recorded, databased, made searchable and then made targetable by advertisers?
All of your voicemails are transcribed and sent directly to your inbox, so even if you don't answer, you're gonna get the message.
What’s Up Google’s Sleeve?
Theory Alert!Browser: Ads can be built into the Chrome browser, served directly & continuously updated based on the sites you visit.
What’s Up Google’s Sleeve?
Theory Alert! Desktop: All computer brands do this with their crapplications. They just do it stupidly – expect Google to be smarter about it.
We’re Frogs. Google is Boiling Us.
Google is sitting back and letting us love all the free stuff.
Little by little, we will have to start paying, one way or another, for all these services.
Google’s value proposition is as good as any: “Our products will make your life much easier and much cheaper, and we’ll give you your time back.”
www.StraightForwardMedia.com
Google is a tremendous success story in American business because, and only because, Google advertising is tremendously effective.
Google Adwords is like taxes or changing your oil: Some people can do it themselves, but many people find it wiser to pay experts to do it.
Seven years of experience dealing with Google directly. Dedicated Google account managers and phone support. Managed over $8 million in customer ad spend (and
counting...) Meet with Google reps annually at Google’s offices. Manage Google advertising in 14 languages Google ads running, as of this moment, in 96 countries
www.StraightForwardMedia.com
Few agencies in the country have as much experience with Google advertising as we do, and none in South Dakota.
We prefer to work with, not compete with, full-service agencies. You offer the service to your customers, and we'll deliver it.
We offer different levels of service for different marketing budgets. Full-service account
management begins at $500 after one-time $2,000 setup fee.
One-time account setup begins at $2,500
Hourly consulting starts at $150/hr