Friday, February 1, 2008

Google must buy PayPerPlay to increase profits

There were signs of a slowdown at Google after it reported disappointing profits in its most recent quarter.
Google's profits were up 17% to $1.21bn (£608m) for the three months to the end of December.
Google's shares have fallen more than 18% so far this year on concerns that the slowing US economy will cause advertisers to cut back on spending.

Google's main source of income is through Adwords. Clicks generated on it PPC network Adsense bolsters it's profits. But lately, Adwords advertisers have been cutting ad spend due to various reasons. The CPC has also reduced. In this situation Google has to look at various alternative methods of advertising. Last year it bought digital advertising company DOUBLECLICK to increase profits. Doubleclick has the best solutions for banner advertising. Now greatness of Google's advertising is that even small advertiser can advertise and get good result. But, due to this big advertisers who spend big do not stand out.
Google should take over PayPerPlay Media. It is a unique audio ads concept which is contextual as Adsense. Unfortunately, PayPerPlay Media does not have the technology or the innovative power of Google to get huge profits. Advertisers spend huge on TV to capture audience. The super bowl is one event where ads spending rockets moon-high!! Youtube is one such part of Google that it can match Super Bowl. It's top videos has captured more eyeballs than Super Bowl. And with Google present in almost all major countries,it can easily deliver regional language audio ads which PayPerPlay media cannot offer(at least soon). Google can easily help advertisers target top sites like Youtube,orkut,etc and charge a premium. This will not only help advertisers get good results but also will reduce their unnecessary spending as small sites can be avoided if they want.
Also Adsense publishers will get even more ways to monetize their site.

1 comments: said...


Having invested in Google, as well as used Google Adsense and Adwords PayPerClick since start, I keep a close eye on industry as a whole, and I would agree, PayPerPlay may become a takeover target if Google revenues continue to flat line.

What is interesting, having read through a few hundred blogs and forums on subject, you have to wonder, did this hit Google stock price? I dumped most of shares at recent highs, thank goodness, and it was partly because of PayPerPlay, a new concept that certainly got my attention.

Now we all know Google is the online ad gorilla, and always will be, but as with all advertising, new concepts sell, old do not, just look at the Yellow Pages to see trend. Will PayPerPlay take revenues from Google, absolutely, and given all the attention it has gotten even before it launched, it is a good sign.

As with all advertising, being in on first runs makes sense given it will get a lot of press, never mind the power of word of mouth through the three tier affiliate program. Yes, even the little guy can make money, and as a adsense user, as well as advertiser, I can't wait to beta test system.

The great thing about PayPerPlay is the set and forget aspect. Anyone who has used PayPerClick knows what I mean, it is a hassle to keep tweaking placement, colors, content etc. to extract every possible click, and with my revenues off almost half of 2006 revenues, it is obvious Google's rise to fame is starting to dwindle.

Will advertisers bolt to PayPerPlay? Could be, I am, and so are thousands of others I have heard from, so time will tell, but it cannot possibly help Google's revenue slide, so stay tuned, PayPerPal could become the next Google, unless of course they buy out PPP, which is what got my attention to begin with. lol

Good luck to all,