PHD Perspectives: Google, the New Advertising Giant (Revisited) - Lance Neuhauser - MediaBizBloggers

Last week I made my first television interview appearance It was a tremendous experience and all things considered it went fairly well However being the Digital guy I am I39m used to having the opportunity to assess performance and optimize Therefore post interview I reflected and realized there were a few points that could have been delivered with more substance and impact Perhaps the lack of knockout punches was due to my lack of experience in front of a camera or the fact that I was wearing makeup but regardless of the excuse and given the conviction I have for the topic I feel it is necessary to further expand upon the debate at handThe battleground quotIs Google the new advertising giant bad for the advertising industryquotThe combatants Fox Business News morning show anchors Brian Sullivan and Dagen McDowell and Omnicom Media GroupPHD representativeamp8230meThe Result Click to watch the video I promise the rest of the article will make more sense if you doWatch the latest business video at FOXBusinesscomMonday Morning Quarterback Point 1 BrianquotMillions going to Google means millions not going to other advertising forms that require the creative services of advertising men and women Is Google bad for the advertising industryquotActual MequotBlah blah change business models to add valuequotA few minutes lateramp8230quotBlah blah Microtransactions not being counted blah blah MyMomsGotABlogcom blah blah Google AdsensequotIdeal Me wearing less blushquotBrian Google is forcing entire industries like advertising as well as individual businesses to evolve their models because Google is opening up markets to new competition Last week Google reported 18 billion in Q3 revenue coming from nonGoogle properties Their Adsense product has begun shifting the balance of power away from the large publishers and cable conglomerates and placed it into the hands of the small yet aggressive content producers These independent producers can now support their efforts using the Adsense revenue and continue to provide highly targeted and valued services to their consumer base It39s the competition that39s putting the pressure on the industry not GooglequotMonday Morning Quarterback Point 2 DagenquotGoogle changed their own organization to better assist the agenciesquotActual MequotThat39s right blah blah Eric Schmidt blah doesn39t want hundreds of thousands of employeesquotIdeal Me wearing less lip linerquotThat39s correct Dagen Google as well as other digital powerhouses like Microsoft and Yahoo have realized the importance of working closely with the Ad agencies These engineering giants look at it from a pure profit standpoint They39ve invested billions into product development and staffing hundreds of thousands of employees to service clients makes it nearly impossible to recoup their development investment In fact when these organizations place a few key individuals in a position to help agencies fully leverage the technology advancements they create a completely repeatable and scalable business modelAND it39s the ad agencies who made their bets more on the people and process side of the business that find themselves in a much more profitable situation when they leverage the technology efficiencies It then becomes a winwinwin because the clients end up with the best of both worldsquotMonday Morning Quarterback Point 3 BrianquotSo we can fire the Mad Men and hire the Math MenquotActual MequotBlah blah data doesn39t translate directly into ideasquotIdeal Me wearing less foundationquotWell Brian not exactlyI mentioned before that consumer behavior and media consumption habits have changed Nowadays it is very rare for a consumer to go directly from seeing an ad to making a purchase The Web stands as a research intermediary between the ad and the consumer and provides the opportunity for the consumer to further engage with the brand As it happens upwards of 85 of consumers begin their brand interactions with a searchAfter all that has gone on with our economy it is our job as the agency to protect the investments of our clients Our client39s investments are best protected when consumers recognize value from the advertising we put out Therefore interfaces like Google and the work of the Math Men can help prove which Mad Men are truly being effective at their jobs and which aren39t It39s not a matter of replacing quality employees with a technology It is a matter of using technology to make sure we are rewarding and keeping that which is qualityquotIt can continue to go on from there but I39ll spare you and end on thisThere39s a scene in the movie Dazed and Confused where Mike Adam Goldberg the tortured soul who wants to dance and quotsmells reeferquot is being provoked by Clint the quotalpha malequot who came to the party quotto do two thingsamp8230quot Mike inept in combative situations acts slowly within the moment and walks away feeling inadequate about his response and his manhoodDespite faring better than a neurotic teenager in a beer bust fight and in recognition that hindsight is 2020 I39ve taken inspiration from Mike who swore to draw even and did just thatOn behalf of all the digital pugilists out there I just hope to get another chance to 39land a few punches39 because on this topic I think we can leave them dazed and confusedLance Neuhauser EVP US Digital Director PHD Media an Omnicom Company You can follow PHD39s Twitter feed at httptwittercomPHDisSmartMediaRead all Lance39s MediaBizBloggers commentaries at PHD Perspectives MediaBizBloggersFollow our Twitter updates MediaBizBlogger

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PHD Perspectives: Google, the New Advertising Giant (Revisited) - Lance Neuhauser - MediaBizBloggers

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