23 Feb 2010

Google Enters the Ad Serving Game Today

5 Comments Ad serving, social media

Today, Google announced their integration of Google Ad Manager and DART. Users of Google Ad Manager are “upgraded” to DFP for Small Business.  It’s free, as are most all of Google’s products, provided you have less than 90 million impressions a month. If you’re bigger than that, then you have to pay support on the premium product.

So if you’re in the business of selling ad server software, I believe your goose is cooked.  Your prospects are about as good as Netscape trying to charge you $89 a year for their browser, Omniture charging $250k a year to use their analytics software, or AOL charging you $20 a month to keep your email address. There may still be folks who will buy the black magic of ad serving, but it’s pretty clear that few firms can compete with Google on ad optimization, as arguably nobody is better at this when it comes to targeting, eCPM maximization, forecasting CTR, frequency capping, and so forth.

But there still are niches that Google doesn’t play in– or won’t play in.  One such example is social ads that inject personalized information into ad templates.  So while Google has potentially won the game of deciding which is the best ad to show to what person, they have not  gone down to the level of using social data to create personalized messages– so customized that they might have your name, friend’s images, and other details in them.

Look out for social ad serving companies that go beyond retargeting and BT networks. In the same way that there is unintended personalization on Facebook– expect that to spread to the general web.  And once the wave of spammers have had their fill, expect local businesses to run smart local ads using social data.

As common practice, Google also released a few videos with this product update. Below is one for the DoubleClick For Publishers on trafficking in the UI.  Notice that related videos are “sex trafficking in Cambodia”, “human trafficking”, and the like.  Perhaps Google DOES have a ways to go with their targeting capabilities.

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written by
Dennis Yu is the Chief Technology Officer of Portage. He is an internationally recognized lecturer in Facebook marketing, having been featured in The Wall Street Journal, New York Times, LA Times, National Public Radio, TechCrunch, Fox News, and CBS Evening News. He is also an author at InsideFacebook and AllFacebook. Dennis has held leadership positions at Yahoo! and American Airlines. He studied Finance and Economics from Southern Methodist University and London School of Economics. Besides being a Facebook data and ad geek, you can find him eating chicken wings or playing Ultimate Frisbee in a city near you. You can contact him at dennis@portage.co, his blog, or on Facebook.
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5 Responses to “Google Enters the Ad Serving Game Today”

  1. Reply Dennis Yu: local online marketing, facebook advertising, internet guru: Google Enters the Ad Serving Game Today « Adjoozey Network says:

    [...] products, provided you have less than 80 million impressions a… View full post on Affbuzz RSS Feed [...]

  2. Reply Galahad says:

    Fascinating, well written article. Does this mean Blitz is out of the ad serving game, or is it moving toward the more personalized “Facebook”
    model?

    • Reply Dennis Yu says:

      Hi David,

      We are in the ad serving game, just not competing directly against Google, which would be suicide. Only compete where you have an advantage, else face getting stepped on by the elephant, who isn’t even aware that you exist.

      Dennis

  3. Reply Meghan A says:

    One year later – it’s time to reevaluate this topic! Did Google adequately crush the competition?

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