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If Microsoft Gets Yahoo!
There's a lot of money spent with online advertising. Next year, more still. Look into the future and it's not hard to tell where a majority of dollars are going to end up, with search engines, or the next itineration of what search will become.

Targeted, accountable search engine advertising is being recognized for what it represents: a change in a system that's been admitted to (quietly) as being broken for years. Stack up Arbitron and Nielsen estimates to the hard reality of computer-measured impressions and clicks, and the estimates will lose, especially when estimates cannot be tracked to the point of sale.

If Microsoft gets Yahoo! it would reshape the revenue streams flowing into Google. It would not topple the giant, but getting 20% of a market it was only able to penetrate by 6% before would put MSN in a better position to fight. Plus, Yahoo!'s search engine ad bidding technology could use the boost that Microsoft's adCenter offers. (Yes, IMHO, MSN is better than Yahoo! in this area.)

The other day we stepped you through Google's "local" search ad buying process. It's just a little more sophisticated than MSN's and Yahoo!'s. While all of them have their help sections, Google offers enormous amounts of instruction through various learning centers. Yahoo! is a few steps behind. MSN lags far back.

So, why is it a concern to a local, traditional media sales person if Microsoft gets Yahoo!? Why should national media shudder at the thought of a combined MSN and Yahoo! battling it out for an increasingly large cut of the pie?

To pit a Micro-hoo against Google in the online marketplace would mean an increase in sales teams knocking on doors, and a vast amount of publicity about online search (and ancillary internet advertising methods). As search gets a stronger foothold in the advertising world, a combined Micro-hoo would cause the thousands of newbies who are just now learning basic internet ad buying to NOT intuitively sign up with Google, as has been the case.

Google is good. I trend towards using what it offers far more than similar platforms from MSN and Yahoo! Only, combine the two latter companies and I'm going to look at the new ways they conjure up to get my online advertising budgets. You know they'll come knocking for more of my local, national, and international online ad spend. This new company would come out swinging in ways far harder than either did before.

And, because I will do these advertising buys from the comfort of my desk, all they need to do is deliver a lower CPM to get my attention. Which they will.

The accountability delivered by any search engine ad buy - local, national, or global - means end performance can be tracked and tweaked. Over the long term, a move from Google to a newly combined Micro-hoo would be worth it if it offered a reduction in pricing. That only grows my ROI. (See "Develuating the Impression.)

Not that this has anything to do with a combined Microsoft and Yahoo!, but take a look at this screen from MSN's adCenter. It shows how, from my desk in Cleveland, Ohio, I can buy advertising in Anaheim, Los Angeles, San Diego, and San Francisco. Look closer and you'll see how I can give percentages to the days of the week and times of day I want my ads to run, and what demos to target.

Click to Enlarge


The above is only one small portion of the internet advertising world. Hopefully, though, it will cause you to think how in just a few short years there are going to be many more ad buyers exploring this new way to reach audience.

...and if Microsoft gets Yahoo! it's going to be an interesting time.







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