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Google and Sky team up for web marketing
The latest internet marketing tie-up has seen search giant Google ink a deal with British Sky Broadcasting (Sky), which will see the two companies share ad revenue.Under the deal, Google will provide targeted search advertising on Sky's websites. Click-throughs to sponsored links will generate the money, which will then be split between the two firms.
Sky launched its broadband internet service in mid-2006 and enjoyed phenomenal take-up - one million customers showed their interest in 100 days. With the new Google deal, Sky will be able to establish its own user-generated content site using Google's video search and sharing technology and will feature a Sky-branded version of Google's email service.
The two companies are exploring "future forms of web, TV and mobile advertising", said Google.
A collaboration between Google and Sky is not unexpected - traditional media have woken up to the internet revolution and are making moves to incorporate the web in their own business practices.
As an example, newspaper groups in the US have already signed a deal with rival search engine Yahoo as they recognise the increasing power of internet marketing.
Also, mergers within the search marketing industry itself - such as that between Bigmouthmedia and Global Media - indicate a willingness for firms to capitalise on a medium that promises to deliver huge ad revenues.
While internet marketing agencies thrive, traditional media agencies, such as WPP, are suffering. As the Wall Street Journal notes, "few ad salespeople in newspapers, television or radio will be sorry to see the end of 2006 - but forecasts being released this week suggest that the tough ad market they experienced this year is likely to worsen in 2007".
According to figures from the Interactive Media in Retail Group (IMRG), internet advertisers can look forward to a 40 per cent increase in online spending next year, as more people are equipped with broadband connections.
The IMRG also found that October was the biggest ever month for UK online sales - customers spent a massive £2.7 billion over the web.
As high street retailers suffer, online firms continue to thrive and many consider that the internet has become indispensable to the way they do business in the 21st century.
News and Public Relations news posted on 08 December 2006
