Google after venturing into Print and Radio ads, the next logical step for the company would be to tap even bigger market of Television ads. Google through AdWords program has started publishing ads in local newspaper and in radio stations. This program is still in testing phase and from the early repsonse both print and radio folks are quite happy with the program.
In particular newspaper has already started generating healthy revenue from the new proposed system. This can prove beneficial for advertisers, newspapers and of course to Google. Newspaper would be more happy to have partnership with Google since then they don’t have to haggle with small advertisers. If Google generates more business to newspapers then it would be more logical for them to share more of their advertising space with Google at higher cost.
For advertisers, Google AdWords would be a nice one-in-all package solution to target Search, Contextual, Video, Mobile, newspaper and radio ads. In particular it sounds a nice proposition to local advertisers who are looking beyond Google Maps, Yahoo local listings and other online local media. Newspaper is always an effective medium to target local advertising. With the help of Google, advertisers can keep a cap on their advertising budget and at the same time enjoy the benefits of offline advertising without exceeding their marketing budget.
Not all radio advertisers are excited with the new idea. In the Adage Article they have quoted a radio company about being scared of Google. As long as Google creates solution which can match up all the requirements of radio company then they should not have any problems with the partnership.
For Google Adwords, it help their bottomline. They get to earn more revenue from new marketing medium. Google is the first company to target offline advertising medium through online channels. If this program is released on full scale then they would bridge the gap between offline and online advertising. Neither Yahoo! or Microsoft are likely to try offline advertising through their paid search program in coming months so Google can enjoy total dominance. Already Google enjoys more search market share of approximately 50% and is much ahead of their competitors Yahoo and Microsoft. For new advertisers it would be no brainer to select Google AdWords as their first preference to target local ads.
If Google breaks a deal with Television media then we can expect Google to double or triple their turn over. This would also mean that the stock price of Google can rise even further. Started with the stock price of $85, Google currently is quoted at approximately $450. With more revenues expected, the stock price can also be expected to rise from the current value. Of course a lot will depend on the success of Print and Radio ads. Television media is calculated approximately $68 billion dollar industry. Google is estimated as $10 billion dollar company. Television ads can certainly open a crucial gate for Google and the partnership would be more beneficial to Google.
Exploring offline advertising channels is the right way to increase Google’s ad revenue. However they will have to come up with systems that can uniquely match up all requirements of traditional channels. Newspaper and Radio companies are happy because they have more control. They can reject advertisers with lower bids. As long as Google keeps them happy they can expect to grow their business in offline channels.