The Real Reason Google Has the Midas Touch
Fetching up to $69 a pay-per-click, it is no surprise that GOOG is a $200 billion gold mine!
Why? Conventional online marketing wisdom hails advertising is shifting online, targeted and meaasurable pay for performance is the future, Google is the Web’s start page…but the real reason GOOG has the midas touch is because, as CEO Eric Schmidt proudly asserts to Wall Street every quarter, Google sees “no ceiling to monetization.”
Google’s success in garnering more and more dollars from more and more advertisers stems from many Google attributes: Most trafficked search engine, inability for businesses to “rank” naturally, blind auction in Google’s favor…AND, THE WILLINGNESS OF ADVERTISERS TO BID UP THEIR OWN RATE CARDS IN FAVOR OF GOOGLE!
The real dirtly little secret of GOOG is that for the first media time ever, advertisers are NOT in control, contrary to public perception.
The Google public game is that advertisers set their own prices, but the inside players know that in order for a marketer to “win” the right to play in the almighty Google “Sponsored Links” sweepstakes, the price better be right: In other Google words, the higher the bid, the better.
Since when are marketers happy to bid up their own rates? Media rate cards have been meant to be broken, and negotiated down by advertisers, except at Google.
Come Thursday, we will undoubedtly see just how happy advertisers continue to be in bidding up their own rates for Google, when Schmidt and company announce Q3 earnings.
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