A few years ago, when Google bought AdWords for $3.4 billion, the world was already buzzing with a lot of buzz about digital advertising.
It’s now been a year since that acquisition, and Google has already launched a slew of initiatives to grow the company’s revenue from ads.
But while the company has a lot riding on the success of those ads, there are still plenty of reasons why Google is going to have a hard time convincing advertisers that they should buy into its digital efforts.
“Advertisers are going to say, ‘What’s the point of spending money on digital when I can get a better value for my money through the internet?'” says AdSense marketing director David Krieger.
“There’s a lot that Google doesn’t have that they can’t leverage.”
And the way Google’s advertising business works is that most of its advertisers can buy through the site.
That’s why most of the companies that buy through AdSense will see lower prices on Google’s search results, and that’s because Google doesn.t actually need to convince advertisers that its digital ads are better than those of its competitors.
It just needs to convince them that its own digital ads have more value than those on the sites of its rivals.
“The problem is that the advertisers don’t really understand that there’s a value-add when they’re actually looking at Google,” says Kevin Miller, a partner at the marketing research firm Zacks Investment Research.
The difference between a paid ad and a free ad, he says, is that a paid advert has a clickthrough rate, or how many times a user comes back to the ad after clicking on it.
A free ad doesn’t.
Google doesn-and that’s a huge factor in how well advertisers are buying into Google’s digital efforts, says Miller.
“You can’t have a good digital ad and have a great digital campaign,” he says.
The value proposition of a paid digital ad depends on how much money the advertiser can make for himself by spending money buying ads through AdWords.
In fact, many ad networks and publishers don’t even have to pay for AdWords-related advertising.
Advertisers don’t have to use AdWords at all to get the digital ads they want.
And it doesn’t matter whether they are buying through Google or not.
The only thing that matters is the price that they pay for the ads.
That is, if Google is selling ads at a cheaper price than the competitor, that means advertisers are getting the same value out of the ads that they’re paying more money for.
But if Google’s advertisers are paying a higher price for the same ads, then Google is essentially making less money, and it is giving the advertisers more incentive to switch to its ad network.
That makes it less likely that advertisers will stick with Google’s ad network, which is why most advertisers have already stopped buying through Adsense.
If advertisers do want to switch, they will find a new digital ad network or switch to another ad network that offers a better deal.
And that, in turn, means the ads will have less value to advertisers, and advertisers will be less willing to spend money on the ads Google has bought.
That in turn means the amount of money that advertisers are spending on Google ads will be lower, says Kriegers.
“It’s not just the amount they’re spending, it’s the amount that they are paying for the advertising,” he adds.
Google’s own research shows that people are willing to pay a higher cost to get a faster return on their money.
A 2014 study from the digital advertising research firm KPMG found that people who spend more on advertising are more likely to switch advertisers, while people who do not spend more are less likely to do so.
That finding was similar to a 2014 study by digital advertising agency Kantar Worldpanel that found that if an advertiser paid more than half the value for an ad they see, people were more likely than not to switch their ad network and buy that ad.
So it’s not that Google has no control over the value of its ads, Krieers says.
“We do have some control over it, but we also have some power to manipulate the market that way,” he notes.
And Google’s manipulation of the market has helped it become the world’s largest ad network by market share, and its ad spending is now bigger than those at Facebook, Amazon, and Netflix combined.
Krieges says Google has more control over how it markets its digital advertising than any other company, and even though advertisers are willing and able to pay more for Google’s ads, they are also less likely have to.
In the US, for example, Google still has a dominant position in digital advertising, and the digital networks that it controls are also dominant in other markets.
But those markets have changed dramatically over the last year or so, and in the past few years, Google has become much more dominant in digital ad