Google Dives Into Old Media

What is Google, a search engine or an advertising network? Today nearly everyone would say "a search engine," but if the Google Guys have their way, people will be answering differently in the very near future.

Having conquered the world of Internet advertising, Google now wants to dominate print, radio and television advertising as well. That's right, the company that has become synonymous with the Web is taking big steps into dusty old media.

At first blush it seems strange that a new media company like Google would want to expand into print, TV and radio outlets. It's especially strange, since old media companies are struggling to stay relevant as they lose more and more of their audience to the Internet.

But by expanding into traditional media, Google is following a classic vertical expansion strategy. What do you do when you are the largest search advertising company? You buy DoubleClick and become the largest Internet advertising company. What do you do once you've dominated Internet advertising? You become the world's largest advertising company.

Google has made some important early steps toward that goal. So far this year Google has signed advertising distribution deals with Dish Network (TV) and Clear Channel (Radio). Clearly Google is now a factor in these industries.

If Google succeeds, they will fundamentally change the way advertising is bought and sold worldwide. But they may find it is easier to revolutionize the tech world than to change the way media outlets do business.

Google's approach to advertising has been to turn media buying into an e-commerce experience. Customers visit a self-service portal (Google AdWords), browse different products (be they search keywords, text link ads or banners on a web site), chose their media mix and launch their campaign, all without speaking to a sale person.

Compare that to media buying in print, TV and radio, which feels more like buying car from a dealership. Prices are negotiable, relationships matter, and you'll get a better deal if you buy in bulk.

Will these two approaches work together? Will TV and radio stations want to play this game, or do they have too much invested in the old system?

Google may find that not everything has a technological solution. As smart as the Google Guys are, can they clear away decades of bureaucracy?

Then again, TV and radio are facing seismic changes triggered by the Internet. With their ad dollars declining, these guys may be ready to take a fresh approach to ad sales.

It's worth remembering that Google.s self-service advertising model once revolutionized the Internet as well. In days of Web 1.0, ad buying meant negotiating with a sales rep at one of the banner networks, and major portals like Yahoo wouldn't talk to you unless you had tens of thousands of dollars to spend.

AdWords (and Overture) changed all of that. If Google can sweep away the sales people on the Internet, why can't they do the same in traditional media?

The breadth of Google.s vision is truly audacious. As a recent Google product survey shows, Google wants not only become the marketplace where all media are bought, they want to create a similar marketplace for advertising creative.

For advertisers, all of this would be a good thing indeed.

This article originally appeared in the Search Marketing Standard magazine.