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"Koeppel Direct's media buying expertise has played an integral role in making my company successful. Koeppel generated so much business for our company, occasionally we have to limit their media buys, in order to handle all of the new business." | |
| - R. Gregg Marketer of Senior Products |
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MEDIA BUYING DIRECT RESPONSE TELEVISION (DRTV) ARTICLE ...... |
Google Looks for Growth from Mobile Advertising
By: Peter Koeppel Published: 12/07 ERA
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Google will be leading an effort to develop software that will make cellphones more like
mobile computers with improved Internet access. Google is looking to transform the mobile industry in the same
manner that the PC changed the world of computing in the 1980's, according to the NY Times (11/6/07). In order to
accomplish this goal, Google will provide outside software developers with access to their phone's functions. They
hope this will encourage software developers to create PC like programs and services for cellphones.
The Internet is Going Mobile
Google recognizes that the Internet is going mobile and they have aligned themselves with leading telecommunications
and technology companies to make and market their phones. A group called the Open Handset Alliance expects to sell
the Google powered phones in the second half of 2008, according to the NY Times. Critics point out that other
companies have tried to form similar types of alliances and failed and that Google will face stiff competition from
established players such as Microsoft, Nokia, Palm and Research in Motion (NY Times). In addition, the two largest
cellular carriers in the U.S., AT&T and Verizon Wireless are not part of the alliance.
Increasing the Reach of Google's Advertising
Google is looking to become the dominant player in mobile advertising, just like they have been the leader in online
advertising. Google hopes that making it easier for consumers to access the web from their cellphones and making
the experience more like that of a personal computer will increase the reach of their advertising. Google said it
will likely share ad revenue with the wireless carriers, according to the Wall Street Journal (11/6/07).
Energizing the Mobile Industry
"Just like the iPhone energized the industry, this is a different way to energize the industry," stated Sanjay Jha, COO
of Qualcomm (NY Times). Mr. Jha also said Google's efforts will bring more Internet features to moderately priced phones.
By allowing outside software developers access to their Android software platform, Google also hopes they will create
new types of devices that have both cellphone and wireless Internet capabilities. "As a result of the platform, you'll be
able to do amazing things on your phones that you've never been able to do before," says Google CEO Eric Schmidt.
(USA TODAY 11/6/07)
Diversifying their Revenue Base
Google is going up against some strong competitors, but they certainly have the clout and resources to gain a significant
foothold in the mobile marketplace. Google's surging stock price clearly indicates that Wall Street and investors
anticipate that Google will be able to diversify their revenue base from new businesses outside of online advertising.
In my opinion, mobile advertising has the potential to be as big as online advertising for Google. It will be interesting
to see how Google's venture into mobile plays out over the next few years, since it has the potential to transform the
industry.
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