Monday, February 15, 2010

Google has 80% share of the online ad market in France

The anti-trust authorities are beginning to circle Google and ask the question whether the internet giant has abused its dominant position. As any publisher who has tried to sell online inventory will know it is vitually impossible to compete with the adsense model - mainly because from a buyers perspective it offers the best return.

Some models based on video pre-roll have started to work but as Google moves to make YouTube a profitable entity this may also come under pressure.

For me this raises an interesting question over whether Google should be "punished" for its success ? They have created a superior platform for advertisers which unfortunately takes a large slice of revenue away from traditional publishers and will doubtless lead to the closure of a large number of ad supported paper based publications.

As a buyer of adwords the system is excellent and much more effective than anything else out there - we should celebrate the success of the model and accept that we cannot indefinetely prop up outdated business models. The French have never really supported the free market however and are likely to take a different view.