Anthony J. Pennings, PhD

WRITINGS ON DIGITAL ECONOMICS, ENERGY STRATEGIES, AND GLOBAL COMMUNICATIONS

The Meaning Makers: Google

Posted on | July 12, 2010 | No Comments

As I mentioned previously, my talk in Hawaii about Internet TV turned into a discussion of Google and its increasing dominance of the advertising industry. In particular, how Google was porting its advertising technologies into an integrated ad management system that includes online, audio, and video. TV is about to turn into “Smart TV” with Google as the major “packager” of its video content, providing the results of searches and associated advertising.

Advertising reached global sales of $377 billion with 40% ($151 billion) of total advertising sales coming through television sales and another $61 billion through online advertising. Global spending on paid search amounted to $29.79 billion, or 48.8% of all online spending according to www.magnaglobal.com. It is likely that online advertising will overtake newspapers as the second-largest advertising medium by 2013, and total $103 billion in 2015.

Google pulled ahead of its search ad rivals due to a couple of algorithmic innovations that still remain largely proprietary, and its adoption of auction theories for selling advertising. Steven Levy’s article on “Secret of Googlenomics: Data-Fueled Recipe Brews Profitability” in Wired Magazine gives a great introduction to what may be the most extraordinary business idea ever devised.

Google’s $23.6 billion in 2009 revenues , 97% coming from advertising, puts it ahead of the world’s largest advertising holding companies: Omnicon, Publicis, WPP, and Interpublic. Yet it sees additional opportunities such as Internet TV. Television’s global advertising revenues of $151 billion is expected to grow significantly. That figure represents a major growth potential for Google.

As TV becomes part of the link economy, every click represents an intention, an interest, a bit of meaning that is stored in Google’s huge data bases located around the country in huge data farms. Google’s goal of “organizing the world’s information” looks to be on schedule.

Share


Anthony

Anthony J. Pennings, PhD has been on the NYU faculty since 2001 teaching digital media, information systems management, and global political economy.

Category: meaning makers, technologies of meaning
Tags: > > > > >

Comments

Leave a Reply





  • Referencing this Material

    Copyrights apply to all materials on this blog but fair use conditions allow limited use of ideas and quotations. Please cite the permalinks of the articles/posts.
    Citing a post in APA style would look like:
    Pennings, A. (2015, April 17). Diffusion and the Five Characteristics of Innovation Adoption. Retrieved from https://apennings.com/characteristics-of-digital-media/diffusion-and-the-five-characteristics-of-innovation-adoption/
    MLA style citation would look like: "Diffusion and the Five Characteristics of Innovation Adoption." Anthony J. Pennings, PhD. Web. 18 June 2015. The date would be the day you accessed the information. View the Writing Criteria link at the top of this page to link to an online APA reference manual.

  • About Me

    Professor at State University of New York (SUNY) Korea since 2016. Moved to Austin, Texas in August 2012 to join the Digital Media Management program at St. Edwards University. Spent the previous decade on the faculty at New York University teaching and researching information systems, digital economics, and strategic communications.

    You can reach me at:

    apennings70@gmail.com
    anthony.pennings@sunykorea.ac.kr

    Follow apennings on Twitter

  • About me

  • Writings by Category

  • Flag Counter

  • Pages

  • Calendar

    April 2024
    M T W T F S S
    1234567
    891011121314
    15161718192021
    22232425262728
    2930  

  • Disclaimer

    The opinions expressed here do not necessarily reflect the views of my employers, past or present.