As reported in major periodicals, including the Wall Street Journal, Google today announced that they are launching a new tool to measure Internet usage, intended to help advertisers find the best places to build their online ads. The rub for companies who sell that like comScore, Quantcast, and Nielsen, Google is giving it away for FREE. Isn’t that nice, Google wants to help the advertisers.
So while you read the surface of this and say, ahhhhh, the open development of Google strikes again for the benefit of mankind, think again. Google will have in their hands the power to craft where people visit, when they visit, and how much money to charge advertisers to go to the sites where they are directing you to visit.
Get real. Nice guys finish last. As we know, there is NO such a thing as a ‘free lunch'.
It's basic Economics 101: Supply and Demand Curves. The sweet spot in pricing and production is where those lines intersect.
Google is squarely aiming to control, yes control, both curves.
- Step 1: Build a brand so that you become the de facto place to look for information
Result: you now ‘own’ the supply, by controlling access to and use of
- Step 2: Build an analytics engine to report actual usage patters on the Web
Result: you now ‘own’ demand curve, by controlling access to and use of
- Step 3: Exert your control over both curves to move them further out, managing both supply and demand you your optimal gain (in this case to dominate the entire Internet monetization world)
Result: Nirvana- now they can buy any island with the jack (read $) they will make
Google will also be able to squeeze advertisers (mainly agencies who specialize in planning and buying media) out of the market in the extreme cases. Why do you need the creative black magic, if it can all be scientifically metricized (yes, I made up that word).
Complete control….. a side of Cyborg with your keyboard?
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