Everyone of course knows that the G guys are the 20,000 pound gorilla in the search advertising space…, thats right, 20K, not 500.
Pretty much all of their revenue…, somewhere in the 90%+ percent range the last time I noticed it written somewhere comes from their adwords and adsense programs. For all of their great success with search ads, they still struggle to find their mojo elsewhere.
One of the biggest programs to keep an eye on is their foray into the print world. They have continually struggled to make significant inroads into that space. The latest write up here from our friends at AdWeek. Tim Armstrong, president of advertising at Google, addressed the crowd at the UBS Global Media Conference, and once again reiterated their continuing struggles in print. Armstrong mentions that they are probably 2.., or 3.., or 5 years away from achieving significant inroads in the print world, and my guess will be that it will come through acquisition, not from their own offering.
A perfect example we will probably see is similar to what we saw with their purchase of dMarc in the radio purchasing space. dMarc was kickin their arses in the space, achieving great growth so Google swooped in and purchased them back in early 2006. Since then the founders of dMarc, Chad and Ryan Steelberg, have left the company because of not seeing eye-to-eye over the operation and direction of dMarc.
It is actually refreshing to hear Armstrong openly say that they are not being too successful and are probably 2, no wait, 3.., no wait, 5 years from significant progress. I had the pleasure of attending the FTC Privacy event in D.C. last month where he also talked. At the FTC event he pretty much provided no information and was a walking press release.
Google will be hard pressed to achieve their goal of being the all inclusive, one stop shop, advertising “operating system”, as Mr Schmidt likes to call it. They have achieved such massive growth in the past few years that people are scared to get too involved with them with their new business ventures.
This is the perfect time over the next 3-5 years for innovative, hard working startups to take on the areas the big guys are trying to enter into. If new players can offer competitive solutions it provides a great alternative to Google offerings especially with all of the paranoia flying around the G guys.