Is Google Morphing Into an Ad Agency?

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There’s a whole lot of noise out there about Google’s deeper involvement in the ad biz.  Have you heard it?

It’s untrue, of course, according to a Google spokesperson, who said, “…We are not in any way setting up our own agency …”

Well, who knows, but the stir seems to come from the hiring-away of Andy Berndt of Ogilvy & Mather.  He’ll be filling a “dual role” so says the report at Clickz News. 
(http://www.clickz.com/3627069)

The 2nd part of the dual role is the one causing the raised eyebrows … that of Berndt working with ad agencies, who run their clients’ campaigns across Google’s network.

Apparently, the first part of his role will be to provide in-house creative support for Google’s own products and services.

One of the ‘Big Dog’ products that Berndt and his staff will put together for clients, from various agencies, is called Gadget Ads.  (Developed in html or flash environments.)

It sounds like these Gadgets are a combo of several things, such as data feeds, images, video and flash elements.

Some pretty heavy hitters have been part of the Beta testing of these gizmoes:  Honda, Six Flags, Intel and PepsiCo.  (Now, there are some major budgets!)

And, according to Google, these clients are “overwhelmingly positive” about their results.

I read that Google’s advertisers (through the ad agencies, of course) can optimize their campaigns, by tracking dozens of actions within the ads.

And web users can syndicate the Gadget Ads to their own sites.  The article said that pricing options include both performance-based and CPM models.  So Google-esqe.  

So, the question still remains for me, “Is Google morphing into an ad agency?” 

I’ll put it this way, I’m glad I’m not still working at one of the BIG New York agencies, with the BIG client budgets.

What will this new advertising medium mean to small to medium-sized business owners, if anything?  Or, is this just a high stakes game reserved for the Big Boys — like buying time on the Super Bowl?

Or … does this move portend anything dismal for future searches??  Money does talk, ya know. 

With all the morphing going on, I would be surprised at nothing in Google-land.

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