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It Doesn't Matter
From Media Post's "Just An Online Minute"
Vanity Fair editor Graydon Carter defended print ads by bashing online to an audience of about 1,000 magazine industry types last week.
Carter said that while he uses Google, he can't remember a single ad he's ever seen on the search engine.
The crowd, while it didn't applaud this revelation, rumbled approvingly as it mulled Carter's comments.
Someone should clue Graydon in that it doesn't matter if he remembers any ads.
Because advertisers don't pay for ads on Google unless they are clicked on.
The crowd should have thrown rotten tomatoes at Graydon while he whistled past the graveyard.
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Posted October 5, 2005 in Venture Capital and TechnologyComments
Wow. People were paying to hear from an expert who didn't know what he was talking about. Very much a "whistling by the graveyard" moment. Good catch.
Posted by: scott partee | Oct 5, 2005 9:38:44 AM
the fact that he didn't remember them doesn't mean he didn't click on them
Posted by: Charles Smith | Oct 5, 2005 11:19:01 AM
Nice one Fred! Seems like a classical case of asynchronous motivations.
This guys is getting disrupted by pay for performance marketing and all that he's doing is dismissing emerging technologies and moving up market to make, bigger, flashier print ads for marketing departments who get fired if they don't spend the money.
Someone ought to send Graydon professor Christensen’s bio. It still frightens me just how right the good professor really was and what’s happening here is a prime example in case.
Give it 5 years or so, let the technology get to the inflection point and people like Graydon are gonna be written up Wikipedia as a testament to an age gone by.
Posted by: Daniel Nerezov | Oct 5, 2005 10:32:17 PM
oh..oooopps...he's the magazine's editor (I thought he was an advertsing agency). Who cares what he thinks? He's got vested interests.
I'm gonna start on that Wikepedia entry.
Posted by: Daniel Nerezov | Oct 5, 2005 10:39:33 PM
I think what he said was somewhat valid (that sounds nuts; hear me out). It's also misguided. Google isn't there to get products remembered. It's there to find products you already remember. Magazine ads, on the other hand, are for creating memories.
If I am a manufacturer/supplier, I don't care who my product is bought from. I care about them buying from a retailer- any retailer. I want to make what the marketing folks call an "impression", i.e. have the consumer see my product in a particular light, in an image that paints my product in a particular way, and will lead to the consumer to remember my product. I don't want a google ad. I want a magazine ad (well, actually, I want television if I have the budget).
If the consumer goes to Google and googles for where to buy it, and end up clicking on a google ad that leads the consumer to buy the product, then that's fine. Once the consumer hits the search engine to find the product, something else has already sold them on the product, and that something could be either an internet article or another form of media.
Google ads, on the other hand, are the retailer/reseller's best friend. If you put an ad in a magazine, and they see a product of yours, and they Google for it, you could lose the sale to any retailer on the internet, in theory. I want them to see *me* when they google for a product, click on my link, and buy it. If they don't click on it, oh well, missed a customer. Don't charge me for that. Google model is perfect for this scenario.
I don't actually see magazine articles as competitors to Google's ads. They're a different tool for a different type of business model.
Too bad the folks in the magazine industry aren't even savvy enough to know how their own advertising model works. That doesn't bode well for them. If they're looking for an enemy to fight, they better worry about how online content sources are going to cut more and more into their reader base...
Posted by: Stacey Douglas | Oct 6, 2005 3:45:53 PM
Fred--isn't it a page of the "good ol' boy" playbook, that if you 'ignore it' long enough, it means "it doesn't exist?"..
My garden has tomatoes, but they're not rotten yet..
Posted by: Carlos Saldivia | Oct 6, 2005 8:22:53 PM
Although I don't think Carter was coming from the same place, he's right. A Google ad can't monetize a purchase made onsite in a local store. And, that's where I spend most of my money.
Of course, VF can't do that either.
But it can (and will) be done. Soon.
Posted by: Mike Orren | Oct 8, 2005 3:29:44 PM
70% of consumers are online
100% of them are consumers, yet only
15% of consumption happens online (through "conversion")
Google is a "conversion-only" advertising platform ... therefore ...
the adsense model is the smallest fraction of the online marketting opportunity
Graydon is right ... adsense is not where the online advertising opportunity is at ...
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