Its looks likely we’ve reached a juncture in advertising where Stalingrad was the turning point for WW2.
Google has world domination at its grasp. Let’s peel the onion.
Google has mobile, video, search, parts of display and now a RTB company that works and you start thinking about the reason they purchased Invite. It was for technology, its real time bidding capability and of course its effective targeting capabilities.
Targeting is key especially since effective and efficient advertising is the wave of the future. Google ownes DoubleClick and its proprietory ad serving products. If Google is the exchange (like a NasDAQ), the Publisher (its own ad network), the Advertiser (its own network and now Invite) then almost all of the data is collated by Google in one shape or another. It has the ability to make its own tweaks internally to game the very system efficiency and free market trading is working towards. Agnostic? I’d don’t think so.
I’m in no way stating that will happen but what is very likely is that it will make many agencies, publishers and other value chain partners nervous. Google can change its search algorithm very easily and it in turn can do the same with display. Its like being a cop, a dope dealer and a dope taker and you can manipulate any one of those because they are all within your control. Google’s motto is ‘to do no evil’ and I do believe that its not likely that it will renege upon this but its still a force. Owning the very ad server that powers the buy side and the supply side and collating all this data is scary.
Once search and display are trading together it makes you wonder….
Ultimately the utopia for Google, Microsoft or Yahoo is to be that ‘one stop shop’ – I remember my mother always telling me if you want the best you have to go to each separate meat,bread and fruit shop. The adage ‘ jack of all trades master of none’ seems quite apt here. More so because of the danger of owning all the proprietory data about the ultimate end users.