Doing to other online ad sellers what was done to print publishing industry
Taking away an increasing share of advertising growth. Driving ad rates lower.
What this could mean to dealers, auto publishers & OEMs:
- First off, Google’s algorithm is gobbling up online ad business
- Exploding trend of programmatic display ad buying pouring cash into Google
- Price pressure is pinching revenue growth at other Web publishers
- Google can make up with massive volume with price efficiency its ad algorithm
- Generated a staggering $4.1 B in operating income;$3.45 B net profit 1st Qtr.
- Revenue rose 19% and paid search clicks surged 26% from a year earlier.
- Ad revenue on Web pages rose 21% from a year earlier
- CPC volume decline created questions on Wall Street
- Quest is “How long can Google’s double-digit revenue growth last?
- Buying and selling of display ads showing up Android-powered mobile devices.
- Revenue at its network partners rose a mere 4% on that basis.
- Hard to compete with Google
- Giving online advertisers more clicks per ad & ad dollars every year.
Source: USA Today, April 17th