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?

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Google: Friend or Foe?

  2. 2. Google Who? <ul><li>Google, Inc. </li></ul><ul><li>230 million search queries per day worldwide </li></ul><ul><li>Available in 117 languages (including Pig Latin, Klingon, and Elmer Fudd)‏ </li></ul><ul><li>Market Cap as of 1/10/08: $205 billion </li></ul><ul><li>Market Cap as of 9/17/09: $156 billion </li></ul>
  3. 3. Google is Not a Monopoly <ul><li>But it might as well be. </li></ul><ul><li>It has 68% of all Web searches. </li></ul><ul><li>Closest competitor is Yahoo (16%), who’s losing share. Bing is 11%. </li></ul><ul><li>Google has the widest moat of any business today. </li></ul><ul><li>&quot;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. &quot;Google has a huge new moat,&quot; Munger said. &quot;In fact I've probably never seen such a wide moat.&quot; </li></ul>
  4. 4. What is Google? <ul><li>Google is the largest advertising company in the history of the world. </li></ul>
  5. 5. RESPECT THE BIGNESS! <ul><li>RESPEK </li></ul><ul><li>THE </li></ul>How Much is $156 Billion?
  6. 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. 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. 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. 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. 10. Shipping COMPANY SIZE (MARKET CAP) UPS $70 Billion FedEx $25 Billion Total $95 billion Google $156 Billion
  11. 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. 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. 13. AND IF YA DON’T KNOW… <ul><li>RESPEK </li></ul><ul><li>THE </li></ul>… Now Ya Know
  14. 14. HOW DID THIS HAPPEN? <ul><li>Obviously through an exhaustive variety of advertising options allowing you to target anyone, anytime, online or offline. </li></ul><ul><li>WRONG! </li></ul>
  15. 15. HOW DID THIS HAPPEN? <ul><li>The lowly text ad. </li></ul>97% of Google's revenue comes from these text ads.
  16. 16. How Does It All Work? <ul><li>Google Adwords: advertising program started in 2002. </li></ul><ul><li>3-Minute Summary </li></ul><ul><li> </li></ul>
  17. 17. It’s Not About the Format. <ul><li>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. </li></ul><ul><li>Google perfected the delivery of a message at the moment you want to hear it. </li></ul><ul><li>“ Perfected” – not invented. They stole it from Yahoo! </li></ul>
  18. 18. 2007 FLASHBACK! <ul><li>“ Google plans to invade your space. “ </li></ul><ul><li>Print, radio, TV – it’s coming after everyone. </li></ul><ul><li>Google wants to own advertising. Google wants to be the ad agency to the world.&quot; </li></ul>
  19. 19. A lot has happened since then…
  20. 20. 2007: Google Print
  21. 21. 2009: Google Print <ul><li>RIP, Google Print </li></ul>
  22. 22. 2007: Google on the Radio <ul><li>Four years ago, Google purchased dMarc Broadcasting. dMarc connected advertisers directly to radio stations through its automated advertising platform. </li></ul><ul><li>Google integrated dMarc into Adwords and rolled out... </li></ul>
  23. 23. 2007: Google Radio Ads
  24. 24. 2009: Google Radio Ads RIP, Google Radio
  25. 25. 2007: Google TV Ads <ul><li>STILL GOING! </li></ul>
  26. 26. LONG STORY SHORT <ul><li>Google knows TV isn’t hurting nearly as bad as radio and newspapers. Splintered, but not abandoned. </li></ul><ul><li>Google thinks TV still has a bright future, and that newspapers and radio don’t. </li></ul>
  27. 27. LONG STORY SHORT, cont. <ul><li>GOOD NEWS: Google doesn’t want its fingers in your pie anymore. </li></ul><ul><li>BAD NEWS: That may not actually be good news. </li></ul>
  28. 28. WHAT NOW, THEN? <ul><li>2009, the message is refined: </li></ul><ul><li>Google wants to own communication. </li></ul><ul><li>It wants to be wherever your attention is. It knows that you aren’t necessarily wed to traditional ad-carrying media. </li></ul>
  29. 29. Google: Next-Gen Social Media? <ul><li>If “social media” is engaging customers where they’re already spending their time… </li></ul><ul><li>… .then Google has big plans for you. </li></ul>
  30. 30. The Anna Nicole Smith strategy <ul><li>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. </li></ul>
  31. 31. Yyyyyeeeeeeeeeeahhhhhhh.......... <ul><li>Google wants to follow you around all day long. </li></ul>
  32. 32. What do you do all day?
  33. 33. What would ya say ya do here? <ul><li>-Actual Work- </li></ul><ul><li>Google Docs – Create, edit, store and download Word, Excel, Powerpoint, PDF documents online and free. </li></ul><ul><li>Cloud computing. Apps run & docs are stored somewhere else. Easy to store your files in one place. (Works for me!) </li></ul><ul><li>Chrome OS. Based on Linux. Easy integration of all Google services. </li></ul>
  34. 34. What would ya say ya do here? <ul><li>-Actual Work- </li></ul><ul><li>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. </li></ul><ul><li>Eliminates headaches & simplifies computing (Less hard drive space, less memory, less processing power) </li></ul><ul><li>Bottom Line: Google wants your attention while you’re workign. </li></ul>
  35. 35. What would ya say ya do here? <ul><li>-Email- </li></ul><ul><li>Gmail. Serves ads to emails. </li></ul><ul><li>POP mail access – consolidates all your email accounts. Also lets Google serve ads in front of emails that aren’t theirs! </li></ul><ul><li>Postini –antivirus/spam filtering. Message archiving. </li></ul><ul><li>Bottom line: While you're emailing, Google wants a piece of your attention. </li></ul>
  36. 36. What would ya say ya do here? <ul><li>-Talk on your cell phone- </li></ul><ul><li>Google has Google Voice. Waitlist. FREE. </li></ul><ul><li> </li></ul><ul><li>(Listen In, Taking Calls, Phone Routing, Conf Calling, Call Record) </li></ul><ul><li>Lots of extras you currently pay for – all free. </li></ul><ul><li>Bottom Line: Google wants to be a part of your phone conversations. </li></ul>
  37. 37. What would ya say ya do here? <ul><li>-Use the Web- </li></ul><ul><li>Google Chrome </li></ul><ul><li>Web browser, fairly new. Known for blazing speed. Integration of all those Google features will be coming. </li></ul>
  38. 38. What would ya say ya do here? <ul><li>-Photos- </li></ul><ul><li>(view/edit/share) </li></ul><ul><li>“ Picasa helps you organize, edit, and share your photos. It's free, and easy to use.” </li></ul>
  39. 39. What would ya say ya do here? <ul><li>-Photos- </li></ul><ul><li>(view/edit/share) </li></ul><ul><li>Picasa </li></ul>
  40. 40. What would ya say ya do here? <ul><li>-Videos- </li></ul>
  41. 41. What would ya say ya do here? <ul><li>-Music- ???????????????????? </li></ul><ul><li>  Why no music-player application? </li></ul><ul><li>Google is, for now, very friendly with Apple. (The enemy of my enemy (Microsoft) is my friend.) </li></ul><ul><li>Apple DOMINATES the online music business. Good place for Google to hang back right now. </li></ul>
  42. 42. What would ya say ya do here? <ul><li>-Facebook- </li></ul><ul><li>Google-Microsoft battle to invest. Google lost. </li></ul><ul><li>Google got Myspace instead. </li></ul><ul><li>Myspace = Detroit -- used to be a boomtown, now it's just scary and dying. </li></ul>
  43. 43. FRIEND OR FOE? <ul><li>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. </li></ul><ul><li>You don’t build (and/or buy) this kind of functionality for no good reason, just to be nice. </li></ul><ul><li>Google is not the government. (Obviously – everything runs smoothly and works well). </li></ul>
  44. 44. An offer you can’t refuse? <ul><li>You will be granted favors, but there will come a time to pay accepting advertising. </li></ul>
  45. 45. What’s Up Google’s Sleeve? <ul><li>Google Says: </li></ul><ul><li>“ Google is in the connection business. Google is in the business of connecting buyers & sellers.” </li></ul>
  46. 46. What’s Up Google’s Sleeve? <ul><li>READ BETWEEN THE LINES. </li></ul><ul><li>“ Google is in the connection business. Google is in the business of connecting buyers & sellers.” </li></ul><ul><li>SELLERS: Advertisers BUYERS: Everyone else. </li></ul><ul><li>The sellers’ messages WILL be delivered. </li></ul>
  47. 47. Google Just Getting Warmed Up? <ul><li>Google is already a $155 billion company </li></ul><ul><li> Google advertising is targeted only two ways: search engine results and contextual website placements. </li></ul><ul><li>THESE ALONE have built the largest advertising company in the history of the world in five short years. </li></ul><ul><li>BUT... imagine how even those big revenue streams could spike if Google expands those targeting options and advertising avenues further. </li></ul>
  48. 48. What’s Up Google’s Sleeve? <ul><li>Theory Alert! </li></ul><ul><li>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). </li></ul><ul><li>  </li></ul>
  49. 49. What’s Up Google’s Sleeve? <ul><li>Theory Alert! </li></ul><ul><li>Phone. Google has voice recognition down as well as anyone (Try Goog411). All calls are recorded. </li></ul><ul><li>If you're using Google Voice, you've actually given them ALL YOUR PHONE NUMBERS. </li></ul><ul><li>So isn't it possible that the voice data could certainly be recorded, databased, made searchable and then made targetable by advertisers? </li></ul><ul><li>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.  </li></ul>
  50. 50. What’s Up Google’s Sleeve? <ul><li>Theory Alert! </li></ul><ul><li>Browser : Ads can be built into the Chrome browser, served directly & continuously updated based on the sites you visit. </li></ul>
  51. 51. What’s Up Google’s Sleeve? <ul><li>Theory Alert! </li></ul><ul><li>Desktop : All computer brands do this with their crapplications. They just do it stupidly – expect Google to be smarter about it. </li></ul>
  52. 52. Mixed Feelings?
  53. 53. Mixed Feelings? <ul><li>Consumer: Fearful </li></ul><ul><li>Advertiser: Hopeful </li></ul>
  54. 54. We’re Frogs. Google is Boiling Us.
  55. 55. We’re Frogs. Google is Boiling Us. <ul><li>Google is sitting back and letting us love all the free stuff. </li></ul><ul><li>Little by little, we will have to start paying, one way or another, for all these services. </li></ul><ul><li>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.” </li></ul>
  56. 56. We’re Frogs. Google is Boiling Us. <ul><li>All that’s left for you to decide is…. </li></ul>
  57. 57. How Much Anna Nicole is in you?
  58. 58. <ul><li>Questions? </li></ul>
  59. 59. <ul><li>Google is a tremendous success story in American business because, and only because, Google advertising is tremendously effective. </li></ul><ul><li>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. </li></ul><ul><ul><li>Seven years of experience dealing with Google directly. </li></ul></ul><ul><ul><li>Dedicated Google account managers and phone support. </li></ul></ul><ul><ul><li>Managed over $8 million in customer ad spend (and counting...)‏ </li></ul></ul><ul><ul><li>Meet with Google reps annually at Google’s offices. </li></ul></ul><ul><ul><li>Manage Google advertising in 14 languages </li></ul></ul><ul><ul><li>Google ads running, as of this moment, in 96 countries </li></ul></ul>
  60. 60. <ul><li>Few agencies in the country have as much experience with Google advertising as we do, and none in South Dakota. </li></ul><ul><li>We prefer to work with, not compete with, full-service agencies. You offer the service to your customers, and we'll deliver it. </li></ul><ul><li>We offer different levels of service for different marketing budgets. </li></ul><ul><ul><li>Full-service account management begins at $500 after one-time $2,000 setup fee. </li></ul></ul><ul><ul><li>One-time account setup begins at $2,500 </li></ul></ul><ul><ul><li>Hourly consulting starts at $150/hr </li></ul></ul>