The Plusses Of GoogleClick
Dave Morgan of Tacoda just posted a rather decent optimism piece in MediaPost's OnlineSpin here, guy makes some pretty decent points, but essentially just points out the attention the deal brings to the online channel itself is pretty powerful, as alone the deal and resulting services could act as a catalyst for a larger share of the total marketing budget pie (sounds horribly unappetizing) being spent online.
The one major concern Dave misses in his piece is that to do everything GoogleClick is going to want to do -- and at first it's all going to sound pretty damn rosy when they start pushing their new features -- GoogleClick is going to just casually start asking to put tracking pixels on every client's landing and conversion pages, as they're already doing heavily with Google Analytics.
This step is going to have two very important consequences:
(1) The tagging will allow them to provide a wealth of new behavioral targeting information and optimization that is going to be hard for most companies to resist. "Triple the scope of my already-successful online marketing campaigns and only continue to gain efficiency? You had me at 'triple'."
(2) The information about customer behavior -- and, more importantly, the budget limits which GoogleClick's clients are willing to pay for each visit and/or action across the board -- is going to provide GooCli with an understanding of every product's highest acceptable market CPA in a way no third-party has ever had. The concern is that they do not continue to use this vast knowledge to simply offer better targeting and results, but instead begin sacrificing each client's individual profits to drive more overall demand for their services.
Should they start to use the acceptable maximum CPA data to inform every client of what every other client is paying down to the level of actual conversions and revenue, Google could very well destroy the competitive advantages any client has for simply advertising with better ideas and lower margins.
"Hey, ah, Lowe's? Yeah, it's Google calling, what's up. Hey, did you know that Home Depot is willing to pay a max of $98 for every John Deere hedge trimmer they sell? Yeah, maybe you might think about raising your bid to $100. Wouldn't want you to get lost in the shuffle. Go for it? Cool."
"Hey, ah Home Depot? Yeah, it's Google. Did you know Home Depot just told us they're willing to go up to $100? Yeah, maybe you should go to $102. Think it over."
Clearly Google is in it to grow the market and not destroy it. But until it's proven that this is a game everyone can win with perfect knowledge, at least a modicrum of distrust is probably not a bad thing.








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