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Wednesday, November 19, 2008

The Big G Financial Bailout Plan

While old economy companies are pouring into Washington, hat in hand, seeking a financial bailout from the government, one new economy company has its own financial bailout plan. Yes, I'm talking about Google.  The Big G has its hand extended to its vast advertising base.  These are the steps in the Google bailout plan:
  1. Entice advertisers to bid higher (with the introduction of first page bid estimates displayed to advertisers):
    first page bid estimates
  2. Place more ads in prime search real estate (bundled with ad quality improvements).
  3. Put more ads in more places (such as Google Finance which is likely seeing traffic surges during this economic crisis).
  4. Suggest advertisers buy more keywords (and at even higher bids than first page estimates).
What's clever here is that Google is not raising prices.  Instead, Google is attempting to convince advertisers to raise prices themselves.  Much of these potential price increases are being sold as ad quality improvements.  This is, indeed, a cleverly orchestrated financial bailout plan.  Advertisers need to be careful as these changes are implemented.  Some, but not all, will benefit advertisers.  The new transparency into bids, however, is clearly designed to boost Google's revenue.  That revenue will come straight from advertisers' pockets.

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2 Comments:

Anonymous edwin said...

Hope God not leaving us alone through our recession time. Very tired..hhuhh... Merry Christmas.
Thanks.
CreditGetWealth.com

Thu Dec 25, 06:36:00 PM EST  
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