A couple months ago I posted my first analysis on Google’s strategy. Since then I’ve been very intrigued with the future of advertising and media and the complementary nature of the two when technology is involved. In essence both are using technology to come together. Google is decidedly a media company. But the nature of that business has changed as Google paves a new path.
We know Google is not just a media company, but a services company, an advertising agency, a content deliverer, etc. But Google has successfully tied all these industries together using technology as a competitive advantage.
Two items in the news today helped solidify my (and many other’s) theories about Google and their intentions. In ‘Media Madness‘ I discussed my view of Google’s future, albeit possibly years away with the inclusion of the dark fiber and content distribution channels. I also talked about their quest for meaningful, relevant local advertising. Localized advertising is the next big thing. It’s the next AdSense…the next billion dollar internet venture. Google knows this and it’s obvious.
Last year Google bought Dodgeball.com, a mobile ‘tracking’ company in a sense. Essentially they provide a service for tracking friends via mobile devices through their web services. It is, at its core, a geotracking service via mobile devices. Another acquisition was Android, who makes mobile software for internet connected devices.
Google has the technology in these acquisitions and the platform in AdSense. Now they need to put it all together and prove the model. Well, now they have. A recent article from Bloomberg Japan describes Google’s successful test of mobile advertising in Japan. By using localized searching and mapping Google can pinpoint your location, providing advertisements to your mobile. As I discussed in Media Madness, this type of advertising aggregation provides a unique position for both the deliverer (Google) and the advertiser. I mentioned that CBS could have made more money by using a pay-per model with exact statistical metrics. Google can do the same.
Using their acquisitions, Google can use geospatial technology to find your location when you do a local search from your mobile — from within 100 feet. They then can use a pay per model (a la AdSense) to track usage thus providing more effective advertising and increasing market reach. This has the potential to completely over-shadow the billions of revenue AdSense has generated.
The other article today from EWeek’s Ben Charny discusses the Earthlink/Google partnership and their plans for localized advertisement in San Francisco. They are doing exactly what I stated they should in my Media Madness post — giving away free internet in order to create a local advertising medium. Ben says, “Because the network is based upon Wi-Fi, a popular wireless technology, Google can figure out the location of someone that’s logged on. It can then serve up ads for businesses within a few feet of the consumer. That’s about as targeted as advertising can get.” Exactly.
Of course this will not be adopted on a mass scale in the United States for some time, but it’s potential is overwhelming. Now the question is how can entreprenuers capitalize on this? There will be big opportunities for disintermediation, aggregation, and services for advertisers who need help. Start thinkin …
Google Watch : Google Puts On Its Track Shoes
Google Successfully Tested Mobile Ads In Japan
tags: google, media, advertising, technology, business
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