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9/2/2007 Gnews + Adsense + Gphone + Gcheckout + GPS = Google Advertising MonopolyThis article is not meant to be a catchy headline that starts a controversy about the potential ethics of recent moves by Google to shake down Newspaper sources as just another respective on the news. Web 2.0 is a pyramid, where the sources of the news and exclusives get the most eyeballs. I believe Google has a renewed focus on Google news because they want more newspapers who have found a backup source of income to die. Just like Microsoft wanted Netscape to die. The reality of the matter is that there are three types of advertising, and an emerging form of advertising that I will talk about below will I strongly believe --and will provide clues as to why--will be much more lucrative than all of the previous three combined. When I read about interesting revaluations like Google signing long term deals with the wire services themselves, I realize that the strategy they are about to reveal and execute. Slowly, the moves of Google will finally show all newspapers that Google is planning on making their survival very difficult. They also want to suction as much money out of the radio advertising budget and the print advertising budget so that there is yet even less competition for Google. Once they have over 90 percent of the market, they will increase prices as it's the only thing left to do in order to expand their income, and by that time, there will practically no one other power house advertising shop that is worth mentioning. Do No Evil. Driving your competitors out of business is not only legal, but it's ethical (unless you are in Japan), taking steps to maintain that monopoly, or using it to enter other markets is what is evil. Let's go through the nitty gritty. Here are the forms of advertising. Keep in mind, there is a finite amount of cash in advertising, and the only way to grow the entire finite amount of money in advertising is the increase the methods by which advertising generates revenue. I'll show you how Google is going to do that in a moment. 1. Print advertising. This type of advertising is your local ads printed in local papers, as well as quasi national papers like the New York Times and the WSJ. Advertisers are spending less and less money here on targeted ads--money that Google never sees, unless it's a part of one of the ads that results from one of the deals Google recently struck with many newspapers. 2. TV/Radio advertising: This type of advertising is the second fastest shrinking form of advertising, 5 years ago, it was perhaps the best form of advertising, and although it's not in nearly as much trouble as print, it also represents advertising dollars that Google doesn't get. 3. Internet Advertising; Search powered pay per click advertising is as of right now the most lucrative type of advertising, not only to the advertising agencies and Google, but also to the customers, who get the best return on investment for their dollars. The reason for this is most of the time a person clicks on Dog Medication, or Dog Flea treatments, or execute queries like this, they are either looking to learn more about such items, but are most likely looking to shop for said items. Advertisers like advertising which turns into direct sales, especially when those sales far surpass what is paid to the advertising provider. 4. GPS enabled advertising: Even if not combined with fantastic Google Local Search (it will be), it is still a much more potentially lucrative form of advertising simply because most people still spend the vast majority of their discretionary income via their automobiles. This form of advertising is also much better than anything else, and Google is in the position to totally annihilate and dominate this market. It will open the advertising market to furniture outlets, as well as manufacturers of heavy equipment. It will change the way some of the largest companies in the world advertise. Namely, Bestbuy, Walmart,Target,Costco, and so on. 5. Enter Google Checkout, Gphone + Google Maps/Earth in the Car: I believe Google will sign a major deal with one of the major credit card companies in which they will be able to combine transactions with Google Checkout with let's say Visa. Every purchase that is made via this card will be tracked by Google, users will get great deals, and Google will make so much damn money that they will destroy all advertising competitors in so short a time that it will make what Microsoft did to the software industry look like a silly game of ping pong. Comments (1)
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