Environmental Scan, Essay Example

Introduction

The article sheds light on issues relating to Google’s display and ad sales and the role that advertizing is playing in this business. The writer is interested in assessing Google’s potential to convert this $1 billion dollar advertizing venture into a $10 billion dollar investment, in an atmosphere of rising demand in internet Ads display. The article indicates Google’s position relative to that of Yahoo in terms of web display. Google’s current advertizing strategies are assessed and its potential for recording success in advertizing in the future is evaluated, with the important areas of strategic advertising changes being highlighted.

Definition of terms and concepts

Web display, the main subject of focus in the article differs from TV display since the effect of the advertizing efforts can be assessed immediately making the method cheap and ideal for use in time of recession. Search-related advertizing, notes David, is what good display ads business is all about (155). Automation of placement means that the advertiser has complete control over the way in which the advertisement appears on the internet and in which format. Online display advertizing encompasses both advertizing and marketing activities, where the buyer is made aware of available products as well as given an opportunity to buy his product of choice online. Search data refers to the keywords that prospective online buyers use in order to get information on the products they want to buy, something that Google uses to measure impact of ads.

Environments

The two competing companies that are rocked in competition in this article are Google and Yahoo, both of which operate on an online atmosphere. Yahoo, in the view of Drèze, Xavier and François-Xavier Hussherr, has managed to succeed more in online display ads because of integrating both people-friendliness and a strong online presence (125). This has been made possible by the fact that this search engine doubles as an online web directory, and therefore interactions with more advertisers is very easy. The main competitive advantage of Yahoo is therefore ability to maintain these two different aspects of web display advertising.

The main competitive advantage is technical effectiveness, something that Google has been over-relying on in recent years. The strength of Google’s analytical procedures of assessing the success of online advertizing activities is likely to result in huge profits if put into good use since Google can inexpensively search through large volumes of search data in search of crucial advertizing information.

Marketing Mix Variables

Both and Yahoo intend to diversify their web display advertising strategies so as to attract new online advertisers as well as enable buyers find the goods and services that they are looking for. Google has been using a unique algorithm that makes the online systems automatically determine which display ads to put on a website once an internet use keys in a certain search term.

In order to make the best use of different marketing mix variables, Google is currently embarking on new advertizing strategies, including implementation of a sales force that is people-friendly. For Yahoo, the battle for market domination is best enhanced through encouraging brand advertisers to display their products on as many professional content sites as possible. This way, both Google and Yahoo are hoping to adapt to changes in web display in order to compete with each other well and increase profitability.

Works Cited

David, Harold. Google Advertising Tools. Sebastopol: O’Reilly Media Inc., 2006.

Drèze, Xavier and François-Xavier Hussherr. Internet Advertising: Is Anybody Watching? Los Angeles: University of Southern California, 1999.