Wednesday, February 01, 2006

Google Innovates At the Bottom With Ad Sales

We will develop and expand this later, but one of the impacts of the GME is the potential that it provides to "innovate at the bottom of the pyramid" (as Clay Christensen terms it).

On of the most innovative things that Google did was to remove the transaction costs from buying advertising. By allow AdWords purchasing online with credit cards, and enabling people to see what kind of ad inventory was for sale and how much it costs in real time (IAI and RTR!), Google opened up the ad market to two new classes of customers:

  1. People with small budgets who could not be profitably served through a traditional, salesman-based ad-sales process
  2. (more importantly) people without the time or inclination to deal with an ad salesman.

Google allowed ad-buying in real time. No proposals, no call backs, no negotiation.

Does what you sell need the sales overhead you have? How much could you expand your market if you streamlined your sales process?

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