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Wednesday, 4 December 2013
Why Google Sells More Than Newspapers, Magazines
Why does Google gobble up more ad revenue than all of the newspapers and all of the magazines?
(1) A disruptive automated online auction platform that allows Google to handle millions of accounts.
(2) a cost-per-click (CPC) pricing model that doesn’t charge advertisers for impressions but for a measurable action (a click on an ad).
(3) relevant search ads that are served to those in the market to buy something.
(4) display ads in relevant content, and, the most embarrassing reason to legacy media.
(5) superior salesmanship
When digital advertising appeared in 1994 – an ad for ATT on HotWired.com – the legacy media laughingly said, “It’ll never amount to anything.” Newspapers were the number-one ad medium at the time, TV was second, radio third, and magazines were fourth at the time (as I remember), and the those media sales executives were arrogant about their insurmountable lead in ad revenues over the fledging Internet.
Salespeople at Google (and Facebook) are “evangelists” (yes, that’s their official title in many cases) who educate their customers about their products and help them understand how to best use their offerings. They don’t sell; they teach.
Google Is Bigger Than Newspapers and Magazines Industry.
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