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Oct 3, 2008

Does Google Need To Spend More On Traditional Brand Advertising?

Does Google Need To Spend More On Traditional Brand Advertising?

Google has always been more an adversary to traditional Madison Avenue advertisers than a friend. But with economic woes looming, there aren’t too many companies with growing advertising budgets. Google is on track to spend nearly $2 billion this year on sales and marketing, yet it’s offline advertising budget is estimated to be only $20 million a year. A story in today’s Wall Street Journal suggests that Google might be overcoming its distaste for traditional forms of advertising as it grows into a global brand. Excerpt:

But there are signs that the internal debate is causing Google to shake-off of its reluctance to advertise. The search giant has recently held discussions with several Madison Avenue agencies, including Wieden + Kennedy and the boutique firm Taxi New York, about new efforts to promote some products, according to people familiar with the matter.

But does it really need to do that? Google’s success is predicated on the fact that traditional forms of advertising are less effective than paid search, contextual, and other, more measurable, online ads. Google is already considered to be the 10th most valuable brand in the world, and it got there without spending money on TV, print, or radio advertising. It got there by weaving itself into the daily habits of nearly anyone who uses the Web. Google markets itself through its products...

Google's Growth So Slow It's Considering Advertising


googlebillboard.jpgNow we know Google's big growth days are over:

WSJ: [I]n recent months some of the Internet company's executives have been pushing for the company to overcome its aversion to paid advertising. That has created some conflict within Google, which is maturing and looking to reinvigorate its slowing growth...

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