Home Google Re-Org Rumors: Google Maturing As Media Business

Google Re-Org Rumors: Google Maturing As Media Business

There’s an interesting rumor doing the rounds about Google doing a re-org of their
advertising business.
Jeff Molander wrote
:

“Three of my most credible resources, including DM News’s Giselle
Abramovich
, are indicating plans for a significant re-organization at Google (Nasdaq:
GOOG). […] On the re-org, says Ms. Abramovich,

“What this means is that there would be one global account director per account,
that pulls in resources to sell as needed – PPC (pay-per-click), Print, Radio, Video,
Display, etc.”

As of yet nobody can confirm with anyone at Google but the leaks are emanating from
Google itself according to all three of my sources.”

The significance of this is that it’s similar to what Microsoft and IBM already do –
extract maximum revenue for each customer (in this case, the larger advertisers on
Google). This means Google will utilize different types of ads (CPC, CPM, CPA, etc) over
all media channels – search, mobile, video, audio, etc.

The benefit for Google’s customers is that it enables them to target certain leads
across different types of media. They can do that from one ‘console’ and they will work
with 1 Google salesperson/account manager on their account. Of course will the large
advertising agencies be happy with this scenario of Google providing a one-stop shop? Of
course not…

I asked Jeff Molander for his views and he told me:

“When a media company (which is what Google is at this point, albeit a
tech-enabled one) has an increasing number of products — in this case
across multiple media like radio, Web video and text ads — you need to
bring them together for clients.

After all, this is the same approach that large, multi-service agencies are
forced to adopt. Media convergence has been the promised holy grail
(witness AOL/Time Warner) but has seemingly fallen flat when it comes to
actually reducing overall media costs for advertisers. Can Google change
all of that?”

Acquisitions on the cards to increase their inventory

One interesting sub-plot here is that Google needs more “inventory” to sell the
different flavors of advertising. Jeff mentions adsense for podcasting in his post – and
that is certain to be one way Google will increase their inventory. Also this puts the
likes of Feedburner, Meebo, edgeio and Commission Junction squarely in Google’s sights as
potential acquisitions. All of those ‘web 2.0’ startups have no shortage of
inventory!

In terms of Google’s overall goals, as summarised at Google Blogoscoped,
this rumored re-org falls under the “push their ad system” category. It really makes
sense for Google and shows not only that they are innovating in technology – but maturing
and expanding as a media/advertising entity.

See also my trail about this, which I will grow as more info comes to hand.

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.