Previously, a 30-second television advertisement was considered to be most effective and most expensive form of advertising. But now, before the media in the network, this view had been no place --- the latest Google and Yahoo in the first quarter's performance report shows that online advertising has made progress in leaps and bounds. Google recently announced first quarter revenues of 1.3 billion U.S. dollars, up 93%, net profit reached 369 million U.S. dollars; Yahoo in the first quarter revenues of 1.2 billion U.S. dollars, up 55%, net profit more than doubled 2.05 billion U.S. dollars.
U.S. business magazine "Advertising Age" forecast, this year's U.S. advertising in battle by Google and Yahoo network of media camp will be from the ABC, CBS and NBC television media camp composition of the largest opponents, it will be "network as a an advertising media in the development process of a watershed. "
Google and Yahoo both companies revenue comes from advertising. Google Inc. has long been committed to developing auction-based advertising service, and innovation. They used the "keyword search + web links sponsors" model proved to be an attractive form of advertising, advertisers are happy to release advertising funds in this way, because this is TV advertising to differ: Online advertising is here as a fee based on number of clicks, while the number of broadcast television advertising is to calculate the costs and time. Currently, Google and Yahoo and other Internet competitors (such as: Microsoft's MSN) are developing a wider range of marketing services model. To Google, for example, has provided to the advertisers called "AdSense" advertising. Adsense advertising keyword advertising and in fact membership (Affiliateprogram) model combination, the reason why this model can be widely used, is involved in campaigns to benefit from the Quartet are: first, the 100,000 google keyword advertising customers unlimited expansion of advertising vehicle as they can get very wide range of keyword advertising attention, not only in the major target site on the opportunity to touch, even extending to a small site --- as long as the site into google partners. Followed by large, medium and small advertising partners. Web site operators do not put special ads, simply copy a code to access according to the way PPC advertising revenue. Especially for smaller sites with lower traffic, only to take such a way that is possible to obtain advertising revenue. The visitors on the site, by keyword query can be obtained more information refer to the relevant content; course, the biggest winner is google.
Google mainly three ways to enhance Ad-Sense Model: Select a specific advertising allows advertisers to upload the network link, Google's market strategy director PatrickKeane said, because advertisers want through their choice to increase brand visibility, so the way for advertisers to provide a flexible and selective; in pricing, Google in addition to referring to the traditional CPM model (ie the "cost per thousand clicks"), also adopted the "cost per click" method --- a kind of fee-based keyword search mode, this model is the product for a purpose search browse user, it is the difference between TV advertising: TV advertising is leading people to buy, but this model is from the point of view to meet the needs of people buy ; Third, Google has focused on providing a lively form of paid advertising, rather than in the past that a bear in the flash animation ads, the company will introduce other models to meet the online video big brand clients on the "big media" advertising needs.
The three channels will be conducive to the rapid development of online advertising. Currently, the U.S. advertising spending in many corporate networks from its 2001 low point after the technology bubble began to rise, which the Internet to become the fastest growing advertising medium. It is reported that in 2004 global online advertising revenue grew 21%, and this growth trend in the coming years will continue. Google and Yahoo are the two most concerned about the site, and in the recent rapid growth of network industries to benefit.
Yahoo CEO TerrySemel said that with the corporate identity on the network's growing online advertising, Internet advertising will continue to have great development space. He is optimistic that the young people nowadays stay time on the Internet far more than the time spent watching TV, many large companies have to invest 2-4% of marketing budgets to Internet advertising.
It is reported that an early operation in a simple online advertising company DoubleClick recent price of 10 billion acquisition by a company. The industry believes that the acquisition shows that the prospects for online advertising as more and more people are optimistic.
Meanwhile, the scope of online advertising is also gradually expanding. Online auction leader eBay business ranging from old cars to the employment agency is not nothing there. Yahoo Inc. is making great efforts to develop entertainment projects, this week, the company appointed a new Chief Executive of the media division, to strengthen the network of entertainment project development efforts. According to industry sources, television media are now worried about more than just one reduction in advertising revenue, but also worry about Internet companies advertising their traditional business areas of infiltration.