The Internet mega-corporate giant, Google, might start to look for native advertising strategy. If this buzz is true, Internet experts assumed that Google will do it at a large scale. The latest news said that Google will run a small test with widget publishers that would include links to content and ads.
In fact, Google can be considered as a serious threat to widgets like Outbrain and Taboola that already live on hundreds of publishers’ sites under banners like “Promoted Stories” and “From the Web.” However, these content-recommendation engines have had their own problems. They have been smashed for displaying low quality or irrelevant content with the host site. Plus, they often allow misleading ads that can spoil readers’ trust to be displayed. That said, publishers need an alternative content exchange that is ad-free and commit to only circulate premium content.
Still, publishers continue to use their services because they are an easy way to recycle their content with the goal of keeping people on their site longer. It’s easy money too, as publishers get paid each time someone clicks on an external content or ad link in the widget.
The opportunity for Google is quite clear. Publishers need to re-evaluate their website, especially with the decline of online CPMs and the trend shift to the smaller mobile screen, the behavior that is often associated with lower engagement. Yet, Google already has ‘historical’ relationships with publishers through AdSense, and a content recommendation powered by Google’s extensive data and analytics would be a natural way for the search giant to expand its grip on publishers’ sites.
“They have a huge amount of history,” said Rebecca Lieb, analyst at Altimeter. “They can slice and dice it a lot of ways.”
Google is good at wiping out bad links and it has its own content sources: YouTube (think about the retargeting options). A content recommendation or native advertising offer would be very tempting for Google.
A content exchange widget would fit squarely in Google’s efforts to get into other aspects of the digital business and expand its presence on publishers’ sites. It’s reportedly already developing a content management system for media companies. Google is a winner if it can come up with a better way to display the content that solves the problems of the existing link exchange plug-ins.
Still, Google’s success isn’t 100% guaranteed. It would have to offer publishers a better deal. Also, nobody wants to be too dependent on any of one vendor. Many publishers already have multi-year agreements with Outbrain, for one, and might be reluctant to add another widget to their already-crowded sites. The reason is quite simple: publishers don’t want all their eggs in one basket.