In a series of articles in the New York Times, The Wall Street Journal and Ad Age, I recently read with amazement about the incredible growth and power of Google.  They pointed out that Google will sell over $6 billion in ads, doubling what they sold the prior year. That equates to more advertising than is sold by any TV network, magazine publisher or newspaper chain. Next year Google is expected to generate more than $9.5 billion in ad revenue, which will place it among the top four American media buying companies. To give you an idea of how big Google has become those revenues will put it ahead of NBC Universal and Time Warner in ad sales. In addition, their profits are increasing more than 100% a year. They have a market value of $120 billion, their stock is trading at $400, up 300% since their IPO and they have close to $8 billion in cash and marketable securities.  That’s enough money to buy a small cable network.

Google is even contemplating getting into TV advertising. This could have a profound effect on the TV industry, since Google tends to drive down prices in markets it enters. The DRTV model is more suited to Google vs. brand advertising, since their platform is based on precise measurement and tracking of results. Google is also interested in delivering TV ads tailored to each viewer through set top boxes, according to the Times. If they had their own TV channel or network, I’m sure it would allow consumers to search for a particular show, video or product. All these developments could provide an excellent opportunity for DRTV advertisers and DRTV media buyers.
 
Companies like Yahoo and Microsoft’s MSN aren’t just standing around allowing Google to dominate the online search and ad business. Yahoo has been buying up Internet companies and Microsoft has made improving their search capability their top priority. So I don’t expect Google to totally dominate the online ad business, which will translate into more competition and better rates and advertising options for marketers and media buyers.

Peter Koeppel is Founder and President of Koeppel Direct