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Google: Friend or Foe?

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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?

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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  • 1. GOOGLE: FRIEND OR FOE?
  • 2. 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
  • 3. 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."
  • 4. What is Google?
    • Google is the largest advertising company in the history of the world.
  • 5. RESPECT THE BIGNESS!
    • RESPEK
    • THE
    How Much is $156 Billion?
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. Shipping COMPANY SIZE (MARKET CAP) UPS $70 Billion FedEx $25 Billion Total $95 billion Google $156 Billion
  • 11. 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
  • 12. 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
  • 13. AND IF YA DON’T KNOW…
    • RESPEK
    • THE
    … Now Ya Know
  • 14. HOW DID THIS HAPPEN?
    • Obviously through an exhaustive variety of advertising options allowing you to target anyone, anytime, online or offline.
    • WRONG!
  • 15. HOW DID THIS HAPPEN?
    • The lowly text ad.
    97% of Google's revenue comes from these text ads.
  • 16. 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
  • 17. 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!
  • 18. 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."
  • 19. A lot has happened since then…
  • 20. 2007: Google Print
  • 21. 2009: Google Print
    • RIP, Google Print
  • 22. 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...
  • 23. 2007: Google Radio Ads
  • 24. 2009: Google Radio Ads RIP, Google Radio
  • 25. 2007: Google TV Ads
    • STILL GOING!
  • 26. 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.
  • 27. 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.
  • 28. 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.
  • 29. 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.
  • 30. 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.
  • 31. Yyyyyeeeeeeeeeeahhhhhhh..........
    • Google wants to follow you around all day long.
  • 32. What do you do all day?
  • 33. 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.
  • 34. 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.
  • 35. 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.
  • 36. 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.
  • 37. 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.
  • 38. 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.”
  • 39. What would ya say ya do here?
    • -Photos-
    • (view/edit/share)
    • Picasa
  • 40. What would ya say ya do here?
    • -Videos-
  • 41. 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.
  • 42. 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.
  • 43. 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).
  • 44. An offer you can’t refuse?
    • You will be granted favors, but there will come a time to pay back...by accepting advertising.
  • 45. What’s Up Google’s Sleeve?
    • Google Says:
    • “ Google is in the connection business. Google is in the business of connecting buyers & sellers.”
  • 46. 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: Advertisers BUYERS: Everyone else.
    • The sellers’ messages WILL be delivered.
  • 47. 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.
  • 48. 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).
    •  
  • 49. 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. 
  • 50. 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.
  • 51. 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.
  • 52. Mixed Feelings?
  • 53. Mixed Feelings?
    • Consumer: Fearful
    • Advertiser: Hopeful
  • 54. We’re Frogs. Google is Boiling Us.
  • 55. 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.”
  • 56. We’re Frogs. Google is Boiling Us.
    • All that’s left for you to decide is….
  • 57. How Much Anna Nicole is in you?
  • 58.
    • Questions?
  • 59. 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
  • 60. 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

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