Digital Thoughts: Staying On Top
by Jay Weintraub 

This article came so close to being about the positive results recently released for online ad spending. I read several other pieces, and couldn’t help but think, “So what?” Whether strong growth or none, the vast majority of our day to day jobs remain the same. Very few of us in the direct marketing space can rest any easier because online ad spending as a whole has increased. As I have pined about before, we work hard for our money. More money being spent doesn’t make our jobs any easier. We will at some point in time benefit, just not now. Positive reports on the industry encourage more, new advertisers to spend online. When those advertisers go through the learning curve and understand the value of CPA, then we benefit. In technology they have Moore’s law for describing the relationship between time and number of transistors. We don’t have anything quite like that, but we should have something that describes the relationship between time and advertiser adoption of CPA.


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  I will be content in the meantime with holding my head a little higher when I say that I work in online advertising and spend the rest of the article talking about one of my other favorite topics, Google. Whenever I think of Google, I picture this small company somewhere up in Canada, a rotation of four to six guys working out of a dorm room, motivated to stay inside and be productive because of the harsh Quebec winter and rampant French influence. Turns out my picture couldn’t be further from the truth, eh. Far from being the little engine that could, Google wields power like a turn of the 20th century Rockefeller. J.P. Morgan’s name still lives on as an integral part of a large corporation, but many others of his generation have not fared as well. When you are a Google, what then do you do to maintain the momentum and position you have through timing and hard work obtained?

 One thing Google has done extraordinarily well is to avoid being labeled and predictable. We may call them a search engine, but they have never operated like one. Were they to have thought themselves simply a search engine, they would have gone the way of Excite, Lycos, and AltaVista. Instead, they continue to pioneer, leading the way in image search, and an all automated news content aggregation site among other things. Clicking on their “Google Labs” link feels like stepping inside the famed MIT Media Lab, home to so many of the things that you and I will only hear about five years from now. Google has also kept us on our toes by purchasing companies that weren’t obvious targets such as Blogger.com and Picasa. Given their reach and influence, I am surprised that more people don’t routinely compare them to Microsoft. A great brand, best-of-breed software, and a clean almost cult like desire to do good make Google special but don’t guarantee them the type of competitive advantage that a Microsoft has.

At some point in time, both Ford and GM dominated the auto market, owning more than 50% market share. Google is the Toyota of the auto-world – the newcomer that rose to unexpected heights without drawing too much attention to itself in the process. At some point in time, these companies go from upstart to target. Google’s success, attributed in no small part to their search engine, made them a target by showing the power and attractiveness of their main market. They now must find a way to continue to make inroads while under pressure. Luckily, most of us won’t face this exact scenario of having to worry about Microsoft investing billions of dollars to push us out of first place. We can, however, learn from this as we will experience the same pressures on a smaller scale. Each time we create a market and show the viability of a particular message or channel, it invites competition, often from those with more resources and/or strengths than we possess. When we succeed, we force the spotlight to shine on us and no longer enjoy “don’t worry about me” status.

Yahoo has done what many in its position couldn’t. Google stands a good chance of doing the same and joining Amazon.com, eBay/PayPal, and Expedia as companies that rose to the top and have held onto their positions as leaders and innovators. What will Google do? A few articles have speculated that Google’s next play will be a web browser. Do they need to create one to stay around? It certainly would satisfy a lot of people who want a viable alternative to IE, and it provides a neat wrapper that could integrate all the components they currently offer – email, search, blogging, image search, and photo storage. Whether a browser is the answer, Google needs to entrench itself in the online user experience and go beyond being another good brand to integral component of its audiences’ lives. Most of us won’t be the next Google, but chances are their struggle can, as mentioned, help us elevate our games to the next level and do better under pressure.

Jay Weintraub

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