Got Ads?
  Jonathan Rosenberg Rationalizing Video Ads

Google seems to have internal rationalizations working to convince themselves that they are not delivering "annoying", untargeted video ads with their new AdSense based video ad program.

In yesterday's analyst call, Jonathan Rosenberg, SVP of Products at Google, spent a lot of time rationalizing the Video ad experiment.

Proclaiming most other "Brand X" video ads "annoying", he emphasized the "static image" that users must click on to start playing the ads. He mentioned that feature several times in succession and his overall answer was much less confident than his usual short and to the point replies to advertising related questions. A lot more "ums", "ahs" and "uhs" sputtered out as he struggled to justify the relevancy.

He was pressed about how the ads are actually targeted - and the answer is pretty enlightening: - video ads are sold on a CPM basis in the auction so the advertiser is incented to bid on sites that the advertisers believe are relevant!

In other words, video ads are nothing like text ads, where Google determines what is relevant. Video ads are simply site-targeted CPM ads. Obviously, that is a lot less targeted then Google wants.

The fact is, they haven't figured out the model, but they know they need to, so that is why the video experiment is starting even though it's fundamentally against Google's belief in delivering relevant ads.

PS: Eric Schmidt chimed in, with a quick spin summary of the rationalizations:

Of course, all of these were not as self-delusional as Eric's big spiel that competitors such as Microsoft entering the market is good for Google - i.e. the online ad market is growing, so it's not a zero-sum game, competitors validate the market, and more companies move to online spending so keyword prices could just keep going higher, blah, blah, blah. That all may be somewhat true in the expanding market, but it's scary rationalization and it makes you realize that Schmidt has no experience in a declining advertising market...

So just keep telling yourselves all that, guys.

The rest of the call was interesting, but John Battelle already posted a summary list that pretty well covers it. It was interesting that the analysts generally ask the kind of questions that the Google-holic blogosphere, SEOs and SEMs are interested in. I do think the analysts are way too deferential to Google, but I think that's the price of access.

Update: Henry Blodget weighs in with a blog post title that's freakin' brilliant: Real Message of Google Analyst Call: We Care.


Links to this post:

Create a Link

<< Home

Subscribe to GotAds?


Recent Posts

Jonathan Rosenberg Rationalizing Video Ads


February 2005 /  March 2005 /  April 2005 /  May 2005 /  June 2005 /  July 2005 /  August 2005 /  September 2005 /  October 2005 /  November 2005 /  December 2005 /  January 2006 /  February 2006 /  March 2006 /  April 2006 /  May 2006 /  June 2006 /  July 2006 /  August 2006 /  September 2006 /  October 2006 /  November 2006 /  December 2006 /  January 2007 /  February 2007 /  March 2007 /  April 2007 /  May 2007 /  June 2007 /  July 2007 /  August 2007 /  September 2007 /  October 2007 /  November 2007 /  December 2007 /  January 2008 /  February 2008 /  March 2008 /  April 2008 /  May 2008 /  June 2008 /  July 2008 /  August 2008 /  September 2008 /  November 2008 /  December 2008 /  January 2009 /  March 2009 /