google the catalyst
I just came across this post by Reprise Media (a previous employer of mine).
I’d love to see a copy of that survey. And I’d love to see how traditional advertising agencies are reacting. Surely they’re getting increasingly nervous about Google stepping onto their turf. And about themselves being unprepared to handle and service the digital world. Publicis’ recent acquisition of Digitas attests to that point.
Regarding the Donna Bogatin article quoted in the Reprise Media post…..
“Google can not readily enter legacy advertising markets offline, however, and disrupt long standing market dynamics by imposing its Google centric pricing schemes.”
I beg to differ. Google’s (and/or others) acceptance into legacy markets will be centered around a more efficient selling/buying process, better and more sophisticated targeting (especially cross-platform behavioral targeting), and more robust reporting (again, cross-platform). Once advertisers got a taste of those things online, there’s no turning back. It will only spread further to offline media. Current dynamics will surely be disrupted. New pricing models will surely be introduced (not necessarily Google’s auction based model, but definitely new models of some sort). We’re seeing it now in cable, radio will follow (both satellite and traditional), print will eventually transition, and mobile will be introduced at some point (no “transition” required for mobile, it’s new enough to be integrated quickly right from the start).
The hiccups along the way will be caused by old infrastructure (witness cable). But infrastructure hardware and software can be replaced. Even REALLY expensive hardware and software. It just takes a little time - actions follow dollars (and then MANY more dollars will follow those actions).
It’s like ‘Field of Dreams’ - “If you build it, they will come”. :-)
Just for the record, I’m not a big fan of Google domination, but they’re the most equipped to do the job. I’d really love to see Publicis acquire Aquantive, and try to beat Google to the punch.