Traffick - The Business of Search Engines & Web Portals
Blog Categories (aka Tags) Archive of Traffick Articles Our Internet Marketing Consulting Services Contact the Traffickers Traffick RSS Feed

Tuesday, November 24, 2009

How Google's New Ad Formats Depart from Google's Old Philosophy

Google has been up front about their upcoming ad format releases, so this doesn't come as a bombshell. Nick Fox shared the news at SES San Jose, and we were offered examples previously, posted here.

Today, VP of Product Management Susan Wojcicki officially describes a variety of the new formats, with appropriate screen shots.

One reaction might simply be, "OMG another nail in the coffin for SEO!". I'm sure some in the SEO community will be afraid that more and more paid screen real estate will make it harder to drive organic traffic, and to some extent that's true. Whether elements of "universal search" take away organic traffic by one mechanism, or whether big local (paid) units take away organic traffic by another mechanism, it's an ongoing shift in the works.

And yes, it's a shift we said SEO's should get used to even back when we wrote about paid inclusion and paid search in the period 2000-2002. It's not easy news to share; never has been.

Google will no doubt protest it isn't turning into the Yellow Pages entirely, and certainly there will remain a huge amount of "unmonetized" inventory.

Susan Wojcicki makes another point worth noting, though, and that's "remaining loyal to [Google's] core principle" of "getting the right ad to the right person at the right time." Perhaps that's a core principle, but it's one that was invented and then emphasized by Wojcicki as a "core principle" in a blog post in 2008.

That implies that the new ad formats are, well, sort of an incremental, evolutionary change. On the face of it, this is disingenuous. In fact, if you looked up disingenuous in the dictionary...

I mean, look at some of the units. Hey Pizza Hut. Want to take up 50% of the screen real estate above the fold, on searches for "pizza hut"? You might have already, but with our new "pay us more" plan, you can sort of control how we display your listings.

Don't pay? Well, it might look something like the screen shot below, when a Toronto native searches for "pizza hut." Oh sure, you show up nicely in the organic results. But doesn't it really stick in your craw that the top sponsored listing is for Pizza Pizza, the leading pizza chain in Canada? Arrggghhhh! Pay up, Pizza Hut.















It naturally occurs to us, then -- given Pizza Pizza's success at "brandjacking" in this instance (largely legal in North America, though often subject to trademark litigation) -- that Pizza Pizza could scoop up the whole area above the fold, even on a search for "pizza hut," if they paid enough. I'm not saying it will happen, but while we're massaging core principles, what's a nuance among friends? Why not go all the way? I'm sure a few users will want to find a Pizza Hut, but they'll quickly lose interest when they see that Pizza Pizza has more locations anyway, to say nothing of seven flavors of dipping sauce.

It may well be significant that Nick leaned towards the word "revolutionary change" in his keynote. He wanted the community, and advertisers, to know that every assumption is on the table for discussion. Implying, in a way, that Google was adopting a new "open for business stance." While Google isn't about to throw its users under a bus entirely (at least if anyone remembers the Google Paradox that made them as wealthy as they are), it's hard to agree that this shift squares with Google "staying loyal to its original principle," unless that principle is a malleable, made-up principle that started making the rounds fewer than two years ago.

Are these significant enough changes to be unsettling, at least to the large contingent of longtime punters who thought they understood what Google's core principles were in the advertising realm? Absolutely. It's way beyond just rattling a few cheapskate SEO's. It's going to shake you up even if you liked buying the paid listings in the past.

Those who will be most comfortable with the changes may well be old-school big brand marketers, and agency veterans from the interruption marketing, big media buy era. Curious. Google spent ten years deriding that paradigm, forcing its adherents to play inside of Google's platform. Now, it's "you got money? let's talk."

They're radical changes, but naturally, Google is painting them as gradual. (Well actually, Nick Fox was honest. He used the word "revolutionary" at one point.)

Here are the key differences between New Google Advertising (2009-) and Google Advertising Classic (2001-2008):

  • Google is doing paid inclusion! In several ways. If this is just the beginnings of it, as it probably is, then Google is moving into paid inclusion in a major way. Almost all of Google's competitors have been lambasted for muddy ways of monetizing that didn't firmly explain what should go where, and whether it's paid for or not. Now that it has a monopoly position, Google is angling to do more of this muddy inclusion than any of its rivals ever did. Danny Sullivan, one of the only people in the industry who has followed the details of all forms of relationship between monetized and unmonetized search inventory, from Day One, of course called this right away in a column last week on Nov. 16, "Google Experiments with Paid Inclusion". And called "BS" on any attempt to deflect attention from this major shift in approach.
  • Google is ramping up a direct ad sales force and turning into the Yellow Pages, where it suits them. Folks, you can't buy all these various ad formats through a platform, and you don't have to adhere to an algorithm or an auction. Arguably, if you want to throw more money at Google, bunches more, for innovative forms of exposure and attention -- so innovative that they impact how Google manages the user interface, not just where it puts your message -- you're free to do so. Hello deep pockets, goodbye level playing field and transparent pricing.
  • Google, the search engine, is now heavily dominated by advertising and thinking about advertising. If you're into information, we suggest you consider Wolfram Alpha, or the local library.
I'm sure more bullet points could be enumerated, but that's the heart of it.

Heck, as a search advertising specialist, I should be thrilled. Maybe, but I'm also a search and information geek. Media buying is at the heart of what SEM geeks do, so I'll survive and so will our corporate clients, who seek ways to buy digital exposure on search engines and elsewhere. But I'm not entirely sure how anyone at Google can talk about their new ad formats cleaving to Google's "original principles" with a straight face, unless they're referring to an "original" principle that's all of two years old.

No one's holding a gun to anyone's head, of course. People love to shop. They love movies, and they love to compare mortgage rates. Hey, many consumers willingly watch infomercials. It's still a free country and you're still free to use or not use the engine and free to look or not look at the ads. But make no mistake, it's a significant change, and it comes at a time when the only significant challenge to Google's monopoly on commercial search in many markets is a search engine run by Microsoft.

Google's early experiments with blended search results made it seem like they never planned to charge anyone for appearing in a whole diversity of (often commercial) forms of listings. Viewed from a certain angle, it now looks like they're cooking up ways to charge everyone for everything. The free ride is rapidly coming to an end.

Labels: , ,

Posted by Andrew Goodman




View Posts by Category

 

Speaking Engagement

I am speaking at SMX West

Need Solid Advice?        

Google AdWords book


Andrew's book, Winning Results With Google AdWords, (McGraw-Hill, 2nd ed.), is still helping tens of thousands of advertisers cut through the noise and set a solid course for campaign ROI.

And for a glowing review of the pioneering 1st ed. of the book, check out this review, by none other than Google's Matt Cutts.


Posts from 2002 to 2010


07/2002
08/2002
09/2002
10/2002
11/2002
12/2002
01/2003
02/2003
03/2003
04/2003
05/2003
06/2003
07/2003
08/2003
09/2003
10/2003
11/2003
12/2003
01/2004
02/2004
03/2004
04/2004
05/2004
06/2004
07/2004
08/2004
09/2004
10/2004
11/2004
12/2004
01/2005
02/2005
03/2005
04/2005
05/2005
06/2005
07/2005
08/2005
09/2005
10/2005
11/2005
12/2005
01/2006
02/2006
03/2006
04/2006
05/2006
06/2006
07/2006
08/2006
09/2006
10/2006
11/2006
12/2006
01/2007
02/2007
03/2007
04/2007
05/2007
06/2007
07/2007
08/2007
09/2007
10/2007
11/2007
12/2007
01/2008
02/2008
03/2008
04/2008
05/2008
06/2008
07/2008
08/2008
09/2008
10/2008
11/2008
12/2008
01/2009
02/2009
03/2009
04/2009
05/2009
06/2009
07/2009
08/2009
09/2009
10/2009
11/2009
12/2009
01/2010
02/2010
03/2010
04/2010

Recent Posts


No, it's really an OS

Whuffie-Shoehorning (Part I)

Good and Bad Overhead

Thanks Battelle, I Feel Better Now

Salute

PPC Has Always Been the Wrong Term

Twinkies References in Zombieland Cause Major Suga...

BlackBerry "Doomed"?

New Google Analytics Features Inject Intelligence ...

Social Media as Signaling Strategy

 


Traffick - The Business of Search Engines & Web Portals

 


Home | Categories | Archive | About Us | Internet Marketing Consulting | Contact Us
© 1999 - 2013 Traffick.com. All Rights Reserved