Google’s New Ad Deal Puts It Ahead of Competition
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For the past decade, Google has been one of the largest, if not the largest, force on the web, particularly in terms of overall clout. With this dominance has come a special monopoly over search advertising, of which Google currently has 73% of the overall market. Ever since Google acquired ad-serving service provider DoubleClick in 2007, the search giant has placed a priority on display advertising. Independent market research firm eMarketer predicts that, in the coming year, Google will account for roughly 17% of the overall display advertising market, with roughly $3 billion in play. This strategy has allowed Google to take the crown for leader in online display advertising from Yahoo! and to freeze out competitor Facebook as well.
On November 14, Google announced a deal that will allow them to surge even further ahead to increased market domination. Publicis Groupe subsidiaries DigitasLBi and Razorfish will be committing over $100 million next year to various Google platforms for inventory purposes.
This deal will provide unfettered access to inventory via Google’s ad networks, both banner and mobile, in addition to actual inventory across its various subsidiaries such as YouTube.
In addition, it will see the companies work together to develop a series of new creative campaigns that focus on web content and YouTube videos, potentially similar to Dove’s recent campaign of “Real Beauty” sketches. This campaign was first launched via YouTube and was then promoted across all of Google’s display and mobile ad platforms.
This unprecedented partnership will allow all involved parties to reap enormous benefits. Google will enjoy a broadening of agency affiliations, allowing it to position itself as an ideal partner for agencies looking to advance their agendas in specific brand spaces. It also provides DigitasLBi and Razorfish with heavily discounted rates, due to the large scale of the proposed campaigns and the large amount of invested capital.
This partnership may serve as the groundwork for a new series of collaborations between major web giants and large ad firms. Given the increasingly large social clout and relevance of sites like Google and Facebook, it wouldn’t be surprising to see other similar partnerships take root in an attempt to continue to invest advertising dollars in the most fertile markets.
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