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Google’s Programmatic Ads Burying Competition & Print Publishing

Speed Read:

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
http://www.usatoday.com/story/tech/columnist/shinal/2014/04/16/first-take-google-results-new-tech-economy-john-shinal/7784903/

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