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Editor's Note: Google visualizes a diverse ad revenue stream, with television a part of that cash flow. Can their model of automation and measurability overcome decades of Madison Avenue's dominance of TV advertising? Google earns 99 percent of its revenue from online advertising. Their contextual search products, and expansions into different advertising models like CPM and CPA, still rely on getting those ads in front of Internet users. That doesn't seem to be much of a problem these days, as Google has become the dominant player in search and advertising online. But they caution investors with each quarterly financial statement that the possibility exists it could all come crashing down at some point. Diversifying the revenue stream for a company can be a risky business. Side efforts can distract a company from the core that put it in a position to need such diversity. It's a risk that Google has wanted to take, by finding ways to inject its auction-based ad model into the world's of radio and television. Google will try to make the TV side of the advertising equation a reality with its formal testing of video ads. The company announced it will partner with EchoStar, operator of Dish, and Astound Cable, a small outfit in Northern California. Though the announcement arrived as a very low-key discussion of the partners and some talking points, it's likely to be discussed at a much higher volume in the boardrooms of the advertising industry on Madison Avenue. The Fear of advertising evolving from a nebulous, semi-quantifiable business, navigable only by highly-compensated ad professionals into a measurable commodity product probably has those executives on edge, and with good reason: why pay a lot for a scattershot ad approach when a brand name can go for a highly targeted market segment, and know who watched what, when they watched, and how much of it they viewed.
"With our AdWords and AdSense advertising programs we have seen the benefits of the long tail and we think we can apply these principles to help grow the TV advertising industry," Google said in a statement. "Our goal is to extend the reach and visual power of this medium to include more advertisers, large and small, and help monetize more TV programming with relevant ads." Madison Avenue may breathe a little easier when considering the travails Google has faced in the radio market. Google's acquisition of dMarc Broadcasting hasn't brought Google great success yet, for a variety of reasons. EchoStar/Dish and Astound have something radio doesn't: set-top boxes, Sirius and XM Radio subscribers notwithstanding. Measurements Google may not be able to gather as well with terrestrial radio will be a lot easier for them to grab from a set-top box. Google said advertisers can target by demographic, daypart and channel and pay only for actual impressions delivered, with pricing on a CPM basis. Imagine the shakeup that could come if Google could make a deal with someone like News Corp's Fox, to auction ads for a popular show like 'American Idol'. Google already has a deal in place to provide search and advertising for MySpace, so there could be a natural match to be made there. (Of course, News Corp did go out and buy online ad placement company Strategic Data Corp in February, so they may be just as terrified by Google too.) With Google working toward television and video advertising, webmasters may be wondering if there could be some impact on them. Unless advertisers start bypassing online ads in droves in favor of TV ads, it's hard to imagine Google's test being detrimental to the market that built Google into a tech powerhouse.
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MySpace To Hold Presidential Primary
By
Mike Sachoff Editor | WebProNews MySpace is becoming more involved in the political process and today announced plans to hold their own Presidential primary. The social networking giant will hold virtual elections on January 1 and 2, 2008. The MySpace elections will take place before the Iowa caucuses and the New Hampshire primaries and will be open to all U.S. members of the site. "The MySpace community will give America its first Presidential primary winner in 2008," said Chris DeWolfe, CEO of MySpace. "Iowa and New Hampshire may be selecting delegates, but the MySpace vote will be the first test of where candidates stand in the election year," added Tom Anderson, President of MySpace. Continue Reading |
Refereeing the linking game Our featured post today comes from magnumgrp1. They need your help in deciding if reciprocal links have a negative impact on rankings. They make a good point about how they could naturally occur, but want to know if this will end up being a problem. Think you can help magnumgrp1 out? Tell us at WebProWorld. Subscribe to the WebProWorld Feed 
Here's my question. Let's say you write something positive about another web site, and your article contains a link to that web site for the convenience of your readers. That other web site sees the article and links to it in all sincerity. Nevertheless, there are now two-way (read: reciprocal) links. Will the search engines mark down your site and the other site because of this?
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