More and more consumers increasingly live their lives online, prompting businesses to either invest in or to re-examine their Web and digital strategies. The Paley Center for Media, program partner of IESE/IME in the Advanced Management Program in Media and Entertainment, hosted a roundtable breakfast with Google’s VP of Americas Operations Dennis Woodside last March, to discuss Google’s role and outlook regarding media, advertising and the Internet. The event, sponsored by global management consulting firm booz&co., was moderated by Interactive Advertising Bureau CEO Randall Rothenberg.
Woodside was optimistic about the myriad opportunities on the Web, and noted that in many cases, the line between direct response advertising (wherein consumers are urged to respond immediately) and brand advertising (wherein the goal is to build brand awareness) is blurring. Google has had success in introducing a new car on YouTube, for example, as well as in getting people to consider alternative options in Google Search.
Local and mobile advertising are also potential goldmines, noted Woodside, especially as location-based services (e.g. mapping, social networking apps like “foursquare,” location-based search results, etc.) become more and more accessible through Web devices and therefore more and more popular with consumers. As economic models are just emerging, however, Woodside cautioned that not all ideas for monetization may necessarily pan out. Likewise, Woodside acknowledged the need for tighter measurements between the time consumers experience an ad and the time they take action — and one possible answer is through “behavioral targeting,” wherein measurable ads are delivered based on a user’s known interests and surfing habits.
Other discussion highlights included:
• Consumer privacy — Woodside believes self-regulation or allowing consumers to “opt out” makes sense.
• The future of journalism — Woodside noted that despite the disruption, consumer demand for news has increased, so the challenge is to monetize that demand using technology.
• An “open” vs. “closed” Web — Woodside claimed that neither approach is perfect, and that having both will create more opportunities for consumers, advertisers and content owners.
• Acquisition vs. innovation — Woodside said that the Web is moving far too fast for Google or any company to rely on just one approach.
