E-Commerce and Google’s Strategy

Based on the Hardy et al. (2007) article, how would you define Google’s strategy?

Article Posted below:

Bets are on that Google, which now brokers ads for US newspapers and radio stations, will soon do the same for TV spots. Could the “frienemy”, as WPP’s Sir Martin Sorrell labels it, threaten the future of media agencies?

Jonathan Hardy

Managing director China Media Solutions

NO “The good news is that Google’s plan to connect the new advertising ‘long tail’ market to traditional media has the potential to broaden the overall media market place enormously.

“And those who recognize this will likely be the ones that will benefit most from the expanded opportunity. In this environment, the media agencies’ position is actually enhanced if they can help their clients understand and navigate these new realities.

“And, by working to identify the value in initiatives such as Google’s, they are then less likely to be undermined by them.”

Jonathan Thurlow

Senior VP/deputy regional director Universal McCann

NO “Google’s move into brokering of media types certainly heralds a new era, but it’s an evolution not a revolution.

“In the same way in the early 21st century there were online auction sales-houses of media inventory, Google is simply taking it to the next level and deploying new technologies.

“Clients’ demand (and need) for consumer engagement will mean that commoditization of price through auction will only be one part of the communication mix decision process. It’s not only agencies, but media brands will also adapt to take on the challenge.”

Richard Kimber

Managing director Google Southeast Asia

NO “Google is very much a friend to the media industry. Google print and audio ads are good examples of this. These programs, currently testing in the US, are designed to complement current media buys.

“They give agencies the ability to provide clients with cost-effective planning, media buying and trafficking at scale.

“That has to be a good thing. The same applies to new forms of online content, such as video. By providing a platform to monetize video content on YouTube, we’re creating a new channel for ad-supported video on the web. This presents a growing opportunity for agencies in Asia Pacific.”

Kamel Ouadi

E-business/CRM director L’Oréal China

NO “Google’s strategy is based on effective management of micro targeted segments. Therefore, Google’s acquisition of YouTube will reinforce its ability to advertise relevant brand communications to targeted niches.

“The additional services provided by Google – brokering print and radio buys in the US – fit the new multi-channel media strategies that most brands face, especially in the US. It’s not a surprise that media remix initiatives have come from one of the most dynamic companies in the digital space. Google shows the way and advertising agencies should embrace this vision.”

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