The article ESPN.com Drops Yahoo for Quigo by Gavin O’Malley was published September 7th 2006 in the online edition of the AdvertisingAge. The article touches on one of the most important issues for marketing in the 21st century: Internet Advertising and Search Engine Advertising. Internet Advertising, which is defined as paid, nonpersonal persuasive messages by identified sponsors, is a rapidly growing billion dollar business and for many marketing professionals the future of advertising. It is becoming more and more important for the marketing industry since it allows companies to promote their products directly to their target markets at reasonable costs and minimal wasted coverage. The article reports that Yahoo is losing its prized relationship with the sports network ESPN.com to its rival Quigo. This new deal will allow ESPN to sell their ad space, mostly banner ad space and sponsorship, directly to their clients and therefore give its clients more options. This deal will double Quigo’s ad impressions on the web and add another well-known client to Quigo’s network of highly reputable clients. Even though Yahoo seems to be unimpressed by the loss of this prized client, they should undertake some steps to become more competitive with some of the new ad technologies such as Quigo’s Ad Sonar technology. As the text states many advertisers are opting for solutions that allow them to deal directly with the website host organization instead of using traditional search and contextual ad networks such as Yahoo or Google. ESPN and other Quigo customers may have started a trend on how online advertising business will be conducted in the future, a trend which the current market leaders Yahoo and Google should observe closely if they do not want to loose more market share. The market for contextual text ads is huge and will continue to grow in the future. This market is way too big and too important to all companies involved in online marketing to let any trend or innovation slip by, even if you are a web giant like Yahoo.
1 Comments:
Does anyone ever search for coupons or looks at ads in the newspapers anymore? Certainly not me, but that is strictly due to the growing Internet advertising era. Probably by lunch time I am already exposed to about 50 ads, all developed to satisfy my needs. Without even realizing I have become their target market and multiple companies have already taken the initiative to track my next step. Colorful pop-ups and interactive banners move along the screen as I continuously try to exit them out.
The article titled, “ESPN.com Drops Yahoo for Quigo,” shows the rivalry between Internet marketing companies, who are constantly trying to appeal to their customers. Yahoo, a very well known search engine, has lost their deal with ESPN.com, a popular sports website. Yahoo has been replaced by Quigo, which personally I have never heard of, to promote their new Internet advertising technology. I truly understand why Yahoo is not sadden by this outcome, and that is because it will give them a better incentive to work harder, come up with a new competitive advantage and once again come on top. Personally I think that this is only the beginning of Internet advertising. We can see that more individuals are tech savvy and will be lured into these ads more effectively as the companies will gain success!
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