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, I'm 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 hand.

The battleground:

"Is Google, the new advertising giant, bad for the advertising industry?"

The combatants:

Fox Business News morning show anchors Brian Sullivan and Dagen McDowell, and Omnicom Media Group/PHD representative…me.

The Result (Click to watch the video. I promise the rest of the article will make more sense if you do.):

Monday Morning Quarterback, Point 1:

Brian:

"Millions 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 industry?"

Actual Me:

"Blah, blah, change business models to add value."

A few minutes later…

"Blah, blah, Micro-transactions not being counted, blah, blah, MyMomsGotABlog.com, blah, blah, Google Adsense."

Ideal Me (wearing less blush):

"Brian, 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 $1.8 billion in Q3 revenue coming from non-Google 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. It's the competition that's putting the pressure on the industry, not Google."

Monday Morning Quarterback, Point 2:

Dagen:

"Google changed their own organization to better assist the agencies."

Actual Me:

"That's right, blah blah, Eric Schmidt, blah, doesn't want hundreds of thousands of employees."

Ideal Me (wearing less lip liner):

"That's 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. They've 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 model.

AND, it's 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 win-win-win, because the clients end up with the best of both worlds."

Monday Morning Quarterback, Point 3:

Brian:

"So we can fire the Mad Men and hire the Math Men?!"

Actual Me:

"Blah, blah, data doesn't translate directly into ideas."

Ideal Me (wearing less foundation):

"Well Brian, not exactly.

I 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 search.

After all that has gone on with our economy, it is our job as the agency to protect the investments of our clients. Our client's 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 aren't. It's 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 quality."

It can continue to go on from there, but I'll spare you and end on this.

There's a scene in the movie Dazed and Confused where Mike (Adam Goldberg), the tortured soul who wants to dance and "smells reefer," is being provoked by Clint, the "alpha male" who came to the party "to do two things…". Mike, inept in combative situations, acts slowly within the moment and walks away feeling inadequate about his response and his manhood.

Despite faring better than a neurotic teenager in a beer bust fight and in recognition that hindsight is 20/20, I've taken inspiration from Mike who swore to draw even and did just that.

On behalf of all the digital pugilists out there I just hope to get another chance to 'land a few punches,' because on this topic I think we can leave them dazed and confused.

Lance Neuhauser, EVP, U.S. Digital Director, PHD Media, an Omnicom Company. You can follow PHD's Twitter feed at http://twitter.com/PHDisSmartMedia

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