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Google Poses a Challenge for Usual Ad Outlets

Posted by TimSlavin at May 4, 2004

"The plan by Google to auction its shares may represent a challenge to Wall Street but the striking success of its Internet advertising business poses perhaps an even greater threat to Madison Avenue.

Unlike conventional advertising, to which vast creative effort is devoted to make it funny or pithy or just downright annoying enough to attract attention, an Internet search engine like Google or Yahoo already has access to users looking for something in particular. Companies with a commercial message can easily reach a vast collection of people one by one who are actually interested in what they have to sell.

As a result, advertisers are finding they can attract buyers relatively cheaply without a blaring message and an expensive Madison Avenue agency to create it. On Google, most ads are simply a few words of text set to the right of the main search results."

Some good background from NYTimes.com (free registration required; free content available only a short time).

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