http://www.zdnet.com/article/google-nears-saturation-point-will-incremental-marketing-dollars-go-elsewhere/
Following our class session, the article here explores whether google's forum is just too saturated with ad dollars such that the incremental dollar is going to alternative platforms like Bing? While sales avenues like Google Shopping appear to be doing well, can the traditional sales venue compete against cheaper alternatives indefinitely? That's not entirely clear to us either. The platform appears superior for the time being at least.
On the positive side, the offset appears to be that at least the effectiveness of dollars spent is improving as evidenced by improved click-through rates. This appears to be a widespread trend though, rather than specific to google.
Among other datapoints of note is the trend around regional vs. national shopping. Google appears to have gone back on the ability to target retail sales regionally, in contrast to what would have been perceived as more high-value more-targeted marketing strategies. We suspect prices could yet trend lower on the back of this result.
The broader question remains what will the company do over time to accommodate to competitors, like Bing, or less conventional competitors like Facebook. The article appears to suggest diversification of its shopping offering to other venues like travel are next on deck. We'll see, but professor's point around controlling information appears the more daunting point rather than really seeing a saturation of dollars. More targeted, effective marketing campaigns would appear to be always worth a further investment.
Following our class session, the article here explores whether google's forum is just too saturated with ad dollars such that the incremental dollar is going to alternative platforms like Bing? While sales avenues like Google Shopping appear to be doing well, can the traditional sales venue compete against cheaper alternatives indefinitely? That's not entirely clear to us either. The platform appears superior for the time being at least.
On the positive side, the offset appears to be that at least the effectiveness of dollars spent is improving as evidenced by improved click-through rates. This appears to be a widespread trend though, rather than specific to google.
Among other datapoints of note is the trend around regional vs. national shopping. Google appears to have gone back on the ability to target retail sales regionally, in contrast to what would have been perceived as more high-value more-targeted marketing strategies. We suspect prices could yet trend lower on the back of this result.
The broader question remains what will the company do over time to accommodate to competitors, like Bing, or less conventional competitors like Facebook. The article appears to suggest diversification of its shopping offering to other venues like travel are next on deck. We'll see, but professor's point around controlling information appears the more daunting point rather than really seeing a saturation of dollars. More targeted, effective marketing campaigns would appear to be always worth a further investment.
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