You are here Google is the "fox in the henhouse"
Submitted by Scott Cleland on Thu, 2007-03-29 11:21
The NYT lead business article on Google entering radio advertising, "The Ad Search, Offline" is a shining example of the theme in my recent blog "Google-YouTube: What's really going on."
- Google is not negotiating with content networks as a "friendly partner" but is a clever competitor sneaking in to disintermediate content-networks from their customers.
- Broadcasters need to realize Google is their competitor, not their ally.
I got the "fox in the henhouse" title for this blog from the last quote in the NYT article:
- "Google "would not say that they are replacing the buyer-seller relationship, said Jeff Lanctot, vice president and general manager at Avenue A/razorfish, an interactive marketing agency. "But it is what they are doing. For a radio salesperson, it is a fox in the henhouse scenario."
The article is a great read because it hammers this theme home.
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Google is saying to content networks: I have a bigger and better "network" than you, so you should let us sell your content on our network.
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What broadcasters are slowly beginning to realize, is that they are vertically-integrated content/distribution models, and Google is coming along and trying to mess with that model and unbundle that value by peeling off and undermining the distribution arm of the bundle.
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