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The Power of Google and Media Buying

By admin | February 22, 2007

David B. Yoffie, a professor at Harvard Business School is quoted in one of the NY Times articles, Google is the realization of everything we thought the Internet was going to be about but really wasn’t until Google. Google has already had a significant influence on small to medium sized media buying businesses by enabling them to advertise cost efficiently and precisely target their prospects. In addition to direct competitors like Microsoft and their Internet search business, the real estate, newspaper, auto and retail industries are keeping a close eye on Google, according to the NY Times. Even Wal- Mart is concerned about how Google could potentially provide the consumer with additional information that will enable them to shop more efficiently for the lowest prices.

Even though it appears that Google is driving down the price of online advertising, keep in mind that the cost of certain types of online advertising is no longer a bargain and will not pay out for direct response advertisers. For example, the price of advertising on major portals such as MSN is skyrocketing. MSN charges several hundred thousand dollars to $1 million for a prime, 24-hour ad spot on its home page, according to the Wall Street Journal. Compared to the cost of advertising on the major portals, direct response TV and search engine marketing should remain cost efficient options for direct response marketers and media buyers. Marketers who effectively integrate their direct response TV media buys and online campaigns and stay on top of the latest advances in both mediums will be positioned to take advantage of the best opportunities in today’s fragmented media landscape.
 
Peter Koeppel is president of Koeppel Direct a leading direct response TV media buying firm.

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