Derrick from Absolute Value has posted the content from slides from Google’s Eric Schmidt’s Analyst Day presentation which seemingly were posted by mistake on the web and that contained a load of information about many aspects of Google including a couple of slides on AdSense which I’ve included below.
They particularly talk about the coming of MSN and Yahoo’s ad systems and what they will do to develop AdSense. There’s not loads of information that we wouldn’t have guessed or suspected. New ad formats, other types of media etc are all things we’re seeing rolled out – although more options are always going to be welcomed by publishers.
Here are the contents of those slides:
Slide #9 – More Complete Ads System
Now let’s look at another core element of our business: advertising. Consider that today, 1 in 4 retail dollars is spent online, and you’ll immediately understand the tremendous opportunity before us.
Our ads business for the moment is healthy and growing and we’re on a strong trajectory
• projected to grow from $6bn this year to $9.5bn next year based purely on trends in traffic and monetization growth
But strong competitors are attempting to aggregate traffic
• AdSense margins will be squeezed in 2006 and beyond
• Y! and MSN will do un-economic things to grow share
• The ad network will be commoditized over time
So, we need to build a more complete ads system that is characterized by two words: wider and deeper. That is, cast the net wider to attract new customer types) and deeper to enhance our relationship with existing customers.’
Slide #11 – More Complete Ads System (continued)
By Wider, we mean:
• Simplifying the experience and streamline advertiser acquisition for small and medium-sized businesses
• Developing a great branding product for large online advertisers and for offline advertisers of all sizes
• Expanding offerings to include print, radio, TV, and direct mails
By Deeper, we mean:
• Providing Advanced Tools & Reporting for sophisticated advertisers (e.g., API, bid management, ad scheduling)
• Expanding AdWords from clicks to conversions (e.g., Landing Page Optimization, Google Analytics integration)
• Tightening integration with other Google products (e.g., SiteMaps, GoogleBase, Local)
To really get down to brass tacks, we’re going to:
• Execute well on our core ads projects to help us exceed the $9.5bn target (and backfill any AdSense partner loss) and drive advertiser satisfaction
• Simplification
• Quality initiatives (e.g. landing page quality)
• Fight hard to maintain share in the AdSense network
• Aggressive guarantees
• Increased monetization on existing pages
• Expand inventory rapidly through:
• Support for new ad formats
• Targeting other types of media
• Developing market-leading/”hit” Google properties and consumer applications
• Extend into adjacent SMB services (CBG is only a first step)
• Treat advertisers as full-fledged businesses with a broad set of needs (not just advertising)
• Ensure that we are not supplanted in the consumer buying cycle by eBay, AMZN, Yahoo in their effort to become one-stop shops in the full buying cycle
• By bringing more product information to Google (e.g. via Base)
• By providing users with a richer search experience (e.g. attribute search, vertical search, and richer product information and reviews)
• By leveraging CCC apps to provide users with the product/service information they care about when they want it
Read more at Absolute Value: Analyst Day Slide Comments
