Advertising 2.0 - a semester in review

When I embarked on this endeavor to research and blog the latest in internet advertising, I thought that I had a solid grasp on the industry. However, as I subscribed to more daily e-mails and read more blogs, I quickly discovered that this industry is moving faster than I would have imagined and advertising on the internet is improving literally on a daily basis. The speed at which advertising on the web changes and integrates into formerly all-content sites is the most surprising aspect of this industry, in my opinion.

In these past few months, I've seen the industry try to put a damper on Google's growth, with Viacom constantly refusing to partner with Google and suing them at the same time. Google came back with a vengeance by acquiring DoubleClick for a measly $3.1 billion and partnering with ClearChannel, in the same week. The web advertising industry moves very quickly and is now moving to make partnerships with offline advertising to more fully integrate the advertising industry as a whole. More offline media outlets are integrating their products online like TNT and the NBA with their myspace page. It is necessary to create a relationship between the online and offline media because it is where the consumers are and the web offers superior targeting and measurement metrics.

Another major difference between the internet and offline media is that on the internet, content is created first and then they figure out how to monetize the content, but the offline industry does not have the luxury of being able to do that. For example, FlixFind has no real way of making a profit, but the content on the site is excellent. As they gain more visitors and improve their layout, the monetization process should improve. It seems that the internet publishers are more concerned with quality content than making a profit, probably because the consumers are as well.

Though I've done a fair amount of research and exploring, I don't know if I can say where web advertising is going in the next few months. All I can say is that more money will be allocated into the internet for media plans. I think the key to sustaining the growth and success of advertising on the internet is to simply deliver content that people desire, while providing them advertisements of products they might actually buy. This has been a great learning experience, and while I probably won't keep a blog, I will continue to read the daily e-mails and proceed in my blogosphere exploration.

NBA/TNT on MySpace

In case you didn't know, the NBA playoffs are going on, yeah neither does anybody else. Apparently, the NBA and TNT think that launching a MySpace page will help boost ratings and get the younger crowd involved. Good thing it's just in time for the end of the season.

The page launched Friday, April 19, just prior to the kickoff of the pro hoops league’s two months worth of playoff action. The page is dedicated to TNT's coverage of the NBA, which will feature "exclusive video content featuring the network's Inside the NBA studio team as well as behind-the-scenes footage from the show. In addition, the page will feature both audio and video snippets from the network’s various pre-game and studio segments" (Shields, Mediaweek). TNT also plans to post pictures as well as blog posts.

Will this increase their ratings? I doubt it.

Google and Clear Channel Reach Deal

After more than a year after dMarc Broadcasting joined the Google team, Google has reached an agreement with Clear Channel, the top radio station owner in the U.S, to sell advertisements across all of Clear Channel's radio stations.

According to the press release,"under the agreement, Google™ Audio Ads advertisers will have national distribution, enabling them to reach specific audiences, at specific times, in targeted geographies. For Clear Channel, this agreement opens up an additional sales channel and provides supplemental revenue by making Clear Channel inventory available to advertisers who previously had not used radio."

Google will add 675 stations to their previous reach of 800 stations that were located primarily in smaller markets.

The New York Times reported that "the companies did not disclose the financial details of the arrangement, except to say that Clear Channel would receive the majority of the ad revenue."

Scott Silverman, Strategic Partner Development Manager at dMarc Broadcasting, declared, "this new relationship with the leading U.S. radio group gives our advertisers access to guaranteed inventory on top-rated AM and FM stations all over the U.S., making it much easier for them to reach their target customers with radio ads" (Official Google Blog)

This appears to be a situation where both parties benefit from the deal, since Clear Channel will increase their revenue, as well as gain different types of advertisers and Google will also gain revenue and more clout within the media industry. If they are able to repeat their success in radio, they will likely be able to have added success in the print and television industries.

Google's Most Recent Aquisition: DoubleClick

There have been a few weeks of chatter and bidding surrounding the sale of DoubleClick, and Google came out on top.

The $3.1 billion agreement was announced yesterday. The acquisition will combine DoubleClick's expertise in ad management technology for media buyers and sellers with Google's leading advertising platform and publisher monetization services.

Overall, it appears that Google believes this merger will further improve digital advertising: "It has been our vision to make Internet advertising better - less intrusive, more effective, and more useful. Together with DoubleClick, Google will make the Internet more efficient for end users, advertisers, and publishers," said Sergey Brin, Google's Co-Founder and President, Technology.

Further support is found on the AdWords blog, "We believe our combined efforts will give you more places to target your ads and more ways to help your online campaigns perform better."

Furthermore, Susan Wojcicki, Vice President, Product Management proclaimed on the Official Google blog that "together, Google and DoubleClick will empower agencies, advertisers, and publishers to collaborate more efficiently and effectively, which will, in turn, provide a better experience for our users."

This acquisition will certainly benefit Google, as well as the DoubleClick shareholders, but only time will tell how it will affect the already skewed competitive landscape in the digital market.

Interpublic Acquires Reprise Media

The Interpublic Group has acquired search marketing agency, Reprise Media, for an undisclosed amount.

According to Reprise Managing Partner Joshua Stylman, "the acquisition was driven by demand from Interpublic's international clients for greater search expertise and also supports Reprise's ambition to expand beyond the U.S. market" (Nelson, ClickZ News).

Reprise will remain independent and serve as a resource to the various Interpublic agencies. Reprise will be reassigned to the "Futures Marketing Group," which houses IPG's Emerging Media Lab, and will also manage IPG's investments in sites like Facebook and Spot Runner.

System Maintenance for AdWords on April 14

On the Inside AdWords blog, it was announced that this Saturday, April 14, the AdWords system will be unavailable for scheduled system maintenance. It will be unavailable from approximately 10 a.m. to 2 p.m.

Although advertisers will be unable to access accounts, campaigns will continue to run as usual.

Viacom parnters with Yahoo!

Viacom and Google have continued their sour relationship as Viacom chose Yahoo! over Google for Search Advertising. This comes just two months after Viacom slapped Google/YouTube with a massive DMCA take down demand, and only a month after Viacom sued Google for $1 billion. Moreover, Viacom partnered with Joost over YouTube last month.

Back to the new deal, Viacom has chosen Yahoo to provide search advertising for 33 of its internet sites. The exclusive multiyear advertising partnership with Yahoo includes the sites for MTV, VH1, BET, Comedy Central, and Nickelodeon networks. More importanly, the partnership could expand to more than 140 additional sites worldwide. The deal includes sponsored and contexual search advertising.

This search deal could also lead to Yahoo gaining additional revenue through placement of Yahoo's display advertisements on Viacom sites.