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Posts Tagged ‘Disney’

Leaked Google Documents Reveal How Much Big Brands Spend on Search Ads

Posted Wednesday, September 8th, 2010

Ad Age has obtained an internal Google document that highlights some of the biggest AdWords buyers for the month of June 2010, offering insight into how big brands are using Google and how much they are spending.

Mashable, 8th September 2010

According to the documents, the biggest buyers of AdWords in June included AT&T Mobility, Amazon, eBay and BP. Although most of those companies are frequent big Google spenders, BP was a newcomer to the list, spending $3.59 million on search ads in the wake of the gulf oil spill (compared to just $57,000 in the two months prior).

Top Spenders

The top spender in June, AT&T Mobility, spent $8.08 million on search ads to coincide with the release of the iPhone 4. According to Ad Age, AT&T’s the third-largest U.S. advertiser overall, so its Google spending is not a big surprise.

Other companies that made up the top 10 include:

Apollo Group – You know them as The University of Phoenix and they spent $6.67 million in June 2010
Expedia – $5.95 million
Amazon – $5.85 million
eBay – $4.25 million
Hotels.com – $3.30 million
JC Penney – $2.46 million — we’ll admit, this one surprises us
Living Social – $2.29 million
ADT Security – $2.19 million

Why Brands Buy Google Ads

The data shows us that for big brands, a heavy investment in Google is usually tied to revenue that comes directly from search traffic (as in the case of Amazon, eBay, Expedia, Hotels.com) or in instances where companies are trying to build awareness (AT&T) or weather a PR crisis (BP).

It’s also interesting to note some of the brands that aren’t on the list. The documents obtained by Ad Age indicate that companies like GM, Disney and BMW spent less than $500,000 on Google ads in June. Even Apple spent just less than $1 million on Google ads, despite its high-profile launch of the iPhone 4.

However, we also think it is possible that some big brands are spending money on search, but not directly with Google. For instance, although Ad Age cites Walt Disney as one of the companies that spent less than $500,000 on Google ads in June, the movie studio released Toy Story 3 that month, a film supported by a massive ad campaign. The film has gone on to gross more than $1 billion worldwide, making it one of the most successful animated films of all-time. It seems odd that Disney would spend only $500,000 on search terms for its big summer release.

What seems more likely, however, is that Disney purchased advertising through companies like Fandango or MovieTickets.com and those companies have their own arrangements with Google. In other words, when it comes to evaluating search spending, don’t count out the potential middle men.

This also makes sense when taking a big-picture approach to Google’s own revenue. The top 10 brands only accounted for 5% of U.S. revenues for the month.

Google is a big target for advertisers because of its strength in search and because of its ubiquity across devices. We do wonder if ad buys will shift to other outlets, like say, Facebook, as users spend more and more time on those networks.


Recession: The Mother of Innovation?

Posted Thursday, September 3rd, 2009

Our special report looks at innovative ways businesses can turn the troubled economy to their advantage

BusinessWeek, July 22, 2009

Necessity may be the mother of invention. But could a recession be the mother of innovation? After all, many of the world’s enduring, multibillion-dollar corporations, from Disney (DIS) to Microsoft (MSFT), were founded during economic downturns. Generally speaking, operating costs tend to be cheaper in a recession. Talent is easier to find because of widespread layoffs. And competition is usually less fierce because, frankly, many players are taken out of the game.

Recessions can also help executives figure out how to improve products, services, and processes internally and for customers. Ideally, the creative thinking that’s needed to weather the storm of an economic downturn can lead to new markets and revenue streams. “Innovation originates from challenges,” says Vineet Nayar, CEO of HCL Technologies, a Noida (India)-based global IT services company.

HCL recently partnered with Xerox (XRX) to provide tech support for corporate customers using Xerox systems meant to reduce the amount of wasted paper. The systems themselves were inspired by the dual challenges of helping to save the environment and the need to slash office expenses during the downturn.

Inventing cost-effective and time-saving processes becomes a priority in a downturn, and it’s an area of interest for companies and organizations in a variety of fields, from high tech to health care. “In a recession, you can innovate to be more efficient,” says John Kao, author of the book Innovation Nation and the head of Deloitte’s Institute for Large Scale Innovation.

Lessons to Be Learned
Sure, there have been some signs lately that the economy might be picking up—Apple‘s (AAPL) quarterly profits jumped 15%, for instance. But a recent survey by consulting firm Bain & Co. found that 60% of 1,430 global executives polled expect the current recession to last through 2010.

And smart companies will continue to apply the innovation lessons learned during today’s tough times even when things pick up. The innovative processes, products, and services that hatch now can help executives understand how to curb costs or take risks on fresh ideas when the economy rebounds.


 
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