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Sunday, May 01, 2005

Thoughts on Google's CPM Advertising Plans


Why is Google moving away from its core competency of Search?

Examples:

- CPM (Pay-per-1000-impressions) advertising that has nothing to do with web or contextual search
- Site-Targeting without the need for searching
- More Image Ads on their Ad networks, which goes against Google's white look and feel and a departure from their popular text-based ads that has brought them success.

All these features have the ability to succeed, but they shouldn't at the cost of effective Search advertising.

Google is a Search company that generates revenue through Search and related advertising.

Now with CPM and Site-Targeting Google is exploring another road of becoming a major Advertising player trying to experiment with its focus on the lucrative ad market without a focus on search. Will this strategy succeed? Google is Google and hope it does and GOOG reaches $310 by the end of third-quarter.

A point to think for Google.

CPM will succeed, and that will be great for their revenues, but it should not be so at the cost of Search-based advertising.

Google should go slow on image ads. Google's Usability, its look and feel separates it from other players, does it want to become a banner ad company with a Google sponsored banners on a million web sites?

Yahoo! and Google:

Yahoo is moving toward revolving their content around search.
- Trying to integrate personal search, contextual search, RSS headlines, blogs, and related content and tying that up with advertising.

Google is moving away from search.
- Introducing CPM ads and Site-Targeting, experimenting with plans to increase revenues not related with search, showing more image ads, trying to expand the network beyond search-based advertising, which is a potential money-spinning business plan, but shouldn't backfire on search-based ads.

Related Post on this Blog:

- New Advertising Options on Google AdWords dt. April 26, 2005.

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