by chiefstaff

October 2, 2014

The Corporate World in 2015

Changing Business Models – Push television/video to YouTube:

Videos ad revenues from YouTube in the US would hit $1.13 billion by the end of 2014. In 2015, Google is making a huge change in the way it has been promoting YouTube: they are going to put significantly higher focus on it.

(Source: http://www.cnet.com/au/news/4-things-to-expect-from-google-in-2015)

Why Google is making this move? Let us unpack Google’s strategy.

Google’s traditional advertising revenue from SEO is starting to stagnate. Among the explanations, one is all robotics clicks are starting to disappear because Marketing Managers have begun to understand that not all clicks are from interested costumers. So they are questioning more and more: Are the clicks they are paying for actually leading to customer purchase or not?

Google’s traditional business is under threat from those who are more in touch with the changing SEO landscape, and are now starting to demand value for money.

At the same time, Market penetration of Search Engines is saturating. Thus, the growth in their market is not as high as it was in the last decade. Google has to search for new revenues of growth and YouTube is one of those new revenues.

YouTube is a growing business. Why? Because an average American, European or Australian still watches numbers of hours every week on televisions and Google is capable of facilitating high quality contents available on demand on any screen at anytime.

Transitioning consumers from cable television or Free-to-air television to online YouTube consumption will have huge implications for the business models of traditional television, as well as Marketing and advertising companies.

Big budget TV advertising will start to diminish. Most of the YouTube’s ads can be produced on much smaller budgets. Because of the fact that customers can be very highly profiled on Google/YouTube, using Google Analytics, one big ad can be replaced by a multiple of highly targeted storyboards speaking directly to each of the niche segments. Typically big advertising agencies are not very good at speaking to the small niches.

That means a number of small advertising companies who are good at low budget niche advertising will crop up. These companies maybe eventually be acquired by large advertising companies, under one umbrella, but they need to have reasonable amount of autonomy and independence to operate on small budgets and retain their key characteristics.

The CEOs and Executives need to know this: their entire world of Sales & Marketing is going to change in the next five years due to the breakdown of the traditional television and advertising model .

The public should know that more and more relevant and highly targeted programs will be available on YouTube, in paid and free formats. On-demand will become the norm: when you want it, where you want it, how you want it, big screens, small screens, tablets, and smartphones.

This change will also have implications for recorders like TiVos and PVRs – people will stop using those, or use less and less of personal video recorders. So if you are thinking of buying one those things, hold off because the price is going to fall!


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chiefstaff

MORE INTERESTING READING
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    If run well, Google CEO Larry Page sees corporations like Google as being an agent of change.

    Google has already changed the way we acquire an information with Search, it’s changed how we consume media content with the Chromecast, and it’s already changing how we consume information with Glass.

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  • Glad to read about Google motives for 2015. I intend to show “Global economic scenarios for 2015–25” It provides more clarity about changes in the upcoming 10 years of business. I refer this-

    “Three interlinked factors have the potential to shift the global economy from one long-term outcome to another: aggregate demand, structural challenges, and diverging growth patterns. First, in the near term, the major economies continue to struggle to achieve self-sustaining growth in aggregate demand. This continues despite years of monetary and fiscal stimulus, as well as the recent drop in oil prices. Second, the world’s major economies face long-term structural challenges, including rising debt loads, aging populations, and inadequate or aging infrastructure. Success or failure in resolving these structural challenges will determine the speed of long-term growth in these economies. Third, the world’s major economies have increasingly diverged in the last few years. In the past, global integration has driven convergence. The prospects for further integration have become less certain. ”

    “The world’s major economies, emerging and mature alike, have been experiencing clearly divergent growth paths in the first half of 2015, in some cases due to unexpected challenges (Exhibit 1). The US economy contracted in the first quarter; growth returned to the eurozone, even as a crisis loomed in Greece. Chinese policymakers continued to steer cautiously between the risks of a slowdown and those of rising debt levels. In India, growth accelerated in anticipation of reforms, while lower oil prices and economic sanctions contributed to a contraction in the Russian economy.” (https://mck.co/2FVqqgJ)

    I welcome your inputs. Thanks

  • Google likes to work on things that no one else is working on. If run well, corporations like Google as being an agent of change. Google has already changed the way we acquire information with Search, it’s changed how we consume media. In order to confront the rapidly-evolving world around us, you need to have a system in place to adapt to the changes.

  • It’s no secret the world has been changing before our eyes. After all, the world is a living thing; change and growth are only natural. So then, how do you find the best way to handle those changes, to make sure you and your company are able to hit every curveball that comes your way? Thanks to Google that has brought innovation and latest trends into the corporate world.

  • Google indexed the internet extraordinarily well without human intervention, unlike previously curated outlets such as Yahoo! or LexisNexis, and in such a way that the user did not have to know how to use the index or Boolean search methods. Google enabled free searches of words or terms, making all manner of information instantly retrievable even if you did not know where it was housed.

  • Now Google is a global archive storing our history as it is made. It is as though a virtual world is being created right alongside our real world, a simulation of reality that grows more robust by the day. Because of Google, the creation and storage of information itself have expanded exponentially as people and scholars have access to information that enables them to make new discoveries. Those discoveries, in turn, are shared with the world thanks to the culture of sharing that has been central to the internet and Google’s philosophy. All this has sped the pace of discovery.

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