Google recently claimed that YouTube adds are 80% more effective when compared to TV commercials, thus starting the Google Advertising Debate. This was based on a study conducted by Google itself and it was thrashed by mainstream media, as you can guess the reaction of TV industry.
In the Google advertising debate, many TV marketing personalities came forward and slashed Google’s claims of high ROI with online videos. While the spend v/s ROI debate was in Google’s favor the spend v/s profit debate inclined towards TV. YouTube’s effectiveness for ads, says Sunder Pichai is very important to them. Even if their parent company, Alphabet Inc, did not meet Wall Street analysts’ expectation, Google is known to rise from failure and take the world by surprise.
Big companies are excelling as they are not letting anyone come close to their numbers. Like Facebook Inc with 60 billion messages a day combining its FB Messenger and WhatsApp application has easily conquered the sms and texting world. YouTube is doing the same for products and services ads of startups and small players.
But the argument begins when you compare it with the hype and branding TV actually creates. Google Advertising Debate is all about a giant tech company taking on a really huge media companies, that do things traditionally.
While Google Advertising Debate tries to help in short term, media companies and corporates say that branding and long-term success is more important. Any campaign run on TV takes almost a year to really answer in terms of profitability is plain stupid. In a fast paced world who has the time to remember. And we are talking about startups and products that have Kickstarter campaigns or VC money that comes with term sheets and targets they have to meet.
Google’s ROI as a tech company itself makes sense in so many ways, but disrupting the traditional way to advertise will take a few more years. When internet and drones really take over, things will change a lot for TV too.
Tell us in comments what you think about the Google Advertising Debate.