Why Is Microsoft's Advertisingposted by MR WAVETHEORY at 3/14/2006 11:53:00 PM
Google is a direct marketer's wet dream. Unfortunately, direct marketers are very price sensitive. These are the companies hawking flowers, toys, and other unwanted products. When keyword pricing moves up, they bail. That's what happened in Q4. Keyword prices went up and Google's revenue growth slowed down because direct marketers rebelled.
Google frankly stinks at brand advertising. Have you seen a Coca Cola ad on Google? No. Why? Because you can't sell the image of Coca Cola with a one line text link, and until Google figures out how, Coca Cola won't do anything. So, for now, what does Coca Cola want from Google? Nothing.
Now, ask yourself what happens when MSN offers Coca Cola or Yahoo branding opportunities on their home page with video spots and Flash rich media? Coca Cola jumps at it - as in the case of the MSN trial. Coca Cola loves it. That's their bread and butter because that's what they know. Coca Cola doesn't do direct response marketing. They do brand marketing. And while direct response may be big, brand advertising is huge. Brand advertising = television advertising.
Why can't Google do this? Simple. Google's product management philosophy is to build a site that allows users to find what they are looking for and leave the site as fast as possible. Oh and by the way, in case you haven't noticed, Google doesn't sell ads on its home page.