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Google’s This Innovative Technique Will Take It Far
Posted by: Arrow Analysis (IP Logged)
Date: April 24, 2014 03:09PM

Tech Giant Google (GOOG) recently launched its newest innovative advertisement techniques in an effort to further the interests of its multimillion dollar ad-network. The new plan, dubbed AdWords, will offer mobile users specific targeted data by using knowledge already garnered from previous app usage.

According to the search giant, app installed across the AdMob network will be able to target consumers based on the data already on file, like what apps a user typically uses, how often they are used and purchases made, if any. This latest move comes in response to similar techniques employed by industry rivals like Facebook (FB), Yahoo (YHOO) and Twitter (TWTR). Even according to the Chief Marketing Officer of Marin Software, Matt Ackley, “We’re seeing an escalating war between Google and Facebook on mobile”.

How does it work?
In a mobile system 80% apps downloaded are used only once or twice before being uninstalled. Apps from third party developers typically see a steep fall in usage after the initial launch. By offering relevant ads to users, the hope is that consumers will be more interested in downloading the apps. The consumers, too, will not be disappointed, claims Google. The new feature, the company assures, will prove beneficial to parties at both end of the marketing spectrum as users will be able to find required apps more quickly and efficiently. In regards to this, the VP of Product Management for AdWords, Jerry Dischler had this to say:

“From a consumer perspective, people aren’t necessarily looking for apps. They’re looking for solutions to their problems.”

For example, a person who regularly follows a strict exercise regime, and uses an app to keep track of it, will see health related app ads.

Deep Linking
Apart from this Google has also developed “Deep-Linking” technology that will revolutionize the face of the ad-display market. Although rumors about the company’s service were out and about, most were under the impression that this feature was still months away.

Deep Linking, as explained by Google, connects the user to relevant pages in already downloaded applications when the user clicks on an ad of the application. To understand this, let’s assume a user has HotelTonight app installed and said person uses Google search engine to look for, say, “Hotels in California”. He will be taken to page where he will get to see an ad from HotelTonight. On clicking that add he will then be redirected to the Hotel listings in California as provided by HotelTonight, thereby making the search process much easier.

What does it mean for Google?
The utility of using a search engine in order to retain customers for third party app developers can be far-reaching. As we can see, Deep Linking bridges the gap between public search engines and stand alone mobile applications which struggled to retain its user market. Needless to say, we can expect huge ad revenue from Google in the coming quarter.

Deep Linking may place Google firmly in the position of revenue leader in the ad-display market, experts claim. The company has already announced that 24 mobile apps would be integrated in to the technology, including Goodreads, Huffington Post and Tumblr.

Parting Words
Google has never been one to do things half-way and its latest technology proves just that. AdWord, coupled with Deep Linking is a unique approach to the ad-revenue network. There is no doubt that Google will make the most of it. Our only concern remaining is the volume of private information at Google’s disposal.



Stocks Discussed: GOOG, FB, YHOO, TWTR,
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