miércoles, 25 de abril de 2012

Google Brand Activate Strategy

Ninetyfive percent of Google's revenue is advertising. So every anouncement that the company makes related to this subject has to be carefully studied. The last anouncement is related to online display advertising and the new metrics they are launching to deliver a better understanding about online campaigns in display, video and mobile ad formats to advertisers.

From Zach Rodgers at AdExchanger.com we see the following:
Google has upped the ante in display ad measurement with products in two categories that appear to be gaining traction with large brand advertisers. The new technologies enable campaign reporting based on "viewable" impressions and GRPs, and are baked into DoubleClick’s ad management suite as part of a new product initiative called Brand Activate.
The viewable impression product, called Active View, will allow ad buyers to credit only those impressions that are visible to an end user. (The Interactive Advertising Bureau proposed the industry move to a viewable standard last September,) Google previously offered a related capability through above-the-fold targeting, which has gained considerable traction, according to Neal Mohan, VP for display ad products.
With Active View, the company joins a growing family of vendors -- including C3 Metrics, Realvu, and comScore -- that help ad buyers measure only those impressions that are potentially visible to a user. This can mean not only discounting ads that are below the fold, but also those that are rendered incompletely, hidden behind other page elements, or screened by ad blocking software, for example.
Meanwhile the new ratings point product, Active GRP, is now available to DoubleClick for Advertisers clients through a pilot program. The technology works in tandem with Active View to estimate the TV-friendly reach and frequency a campaign achieved with its target demographic through a combination of aggregated (panel) and anonymous data.
At least one big brand is enthused. In a prepared statement shared through Google, Rick Hosfield, General Mills VP of content planning and distribution, said, “We are very interested in Google's Brand Activate initiative to help guide our understanding of how to optimize our brands’ performance in real time and across all platforms. Our interest is in identifying and using the metrics that matter most, especially those that allow for easy comparison between digital and TV.  We are excited to begin the journey and learn together.

Google is seeking Media Ratings Council accreditation for both Active View and Active GRP products.

With Brand Activate, Google is making the first move to implement TV advertising metrics into the online world.

Display advertising has pushed CPM, CPC and CPA rates down in the past few years for Google. The integration between Adwords, Adsense, DoubleClick and ADX is showing that it will be hard for Google to combine all this business models without hurting their prices. Display advertising pushes prices down because conversions are lower than in the search space.

Google needs to give some fresh air to their display business model and move it away from the Adwords claim "It's about results". So they are opening a new debate about how to market their online display, video and mobile advertising with their Brand Active approach. If Google could sell all their Youtube video inventory based on TV advertising rates, they could make more money than they are doing right now.

Google has become an enourmous online publisher, competing against Facebook, the other audience big online property. So Google needs, as every publisher does, to leverage the value of their online audience by giving the right price to their online display advertising. For Google, selling audience could be a much better business than selling conversions.

So Google has started its own strategy to sell their audience like TV has for decades and to try to earn more money from it. The big question is if advertisers will embrace the new metrics and approach after having tasted the same advertising products at lower rates. Google will need to convince advertisers with technology and audience results, and form a lobby with other big online publishers. The battle has just began, this time will Facebook and Google work together for it?

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