Jarrod HoltFebruary 20, 2007Computer ScienceAdvertisingThe advertising industry is only now starting to grow out of “the Wanamaker era”.This advertising era is named after John Wanamaker, a Christian merchant fromPhiladelphia who invented department stores and price tags. He also became the firstmodern advertiser when he bought space in newspapers to promote his stores. Mr.Wanamaker said, “Half the money I spend on advertising is wasted, the trouble is, I don’tknow which half. This is very true; money spent on advertising during “the Wanamakerera” was very inefficient. Advertisers would spend lots of money on advertising that wasbeing wasted on individuals without interest in products.To fix the waste of money on advertising pay-per-click was created. Suchprograms as Adwords and Overture were put into action. This new advertising is basedon consumers themselves taking the initiative by showing up voluntarily and interactingwith what they find online. With pay-per-click the advertisers now only have to paywhen someone clicks on their advertising. This allows advertisers to cut out the wastedmoney they used on advertising and only have to pay for the costumers that are interestedin their product. The problem with “pay-per-click” is click fraud. Click fraud is whenpeople are being hired to click on other businesses advertisings. This would makecompeting business pay lots more money for their advertising than was actually beingseen by interested customers.Because of click fraud with pay-per-click, new programs are being developed tostop such complications for advertisers and to make the world of advertising moreproductive. One such program that is being developed is pay-per-print. With this,advertisers are only going to have to pay when a customer prints out something. Anexample of this is the “Coupon model” this is where advertisers are charged only when aconsumer prints out a coupon. Also pay-per-call is being developed as well. Thisprogram will only charge advertisers when they receive a live call from a consumer.AOL is the biggest partner involved with this. The most efficient program that is beingdeveloped is being created by Bill Gross. He calls this program cost-per-action.Advertisers with this program will only have to pay when consumers purchasesomething. Although these programs are more efficient they are extremely hard forGoogle to keep track of who is printing out materials based on advertising, calls, andmaking purchases based on the advertising that Google is producing.Businesses also use branding for advertising. This is the idea of getting theircompanies brand as much exposure as possible. An example of this is super bowlcommercials and video games. This type of advertising reaches a wide variety of people.There might be lots of the same product but the difference is the brand name. The reasonyou would choose a Tommy Hilfiger shirt over some other companies shirt that looks thesame is because of branding. This type of advertising, although extremely expensive, isvery effective with bigger companies. A company such as Coke would probably preferbrand advertising over Google’s advertising. This is because people don’t generally lookup Coke on the internet. Therefore it would not be efficient for the Coke company to putlots of money on the internet.Advertising is constantly being improved to give advertisers advantages in theadvertising market. Advertisers usually don’t make advertising changes until they havealready put their assets into the advertising. Now advertisers on the internet can see theinterest being produced by certain companies in real time. Real time is being able to seewhat is being done as it is happening. Real time allows the advertiser to have knowledgeimmediately of the amount of interest that is being produced. This allows him to managehis assets in relation to his advertising. An example of this would be, an advertiser has$100 and 2 possible ways of advertising his product, he could use Google or Overture.He could go with just one of them, but he does not know which one is better. So he puts$10 in both to see the real time performance. Depending on the results of real time hewill put the rest of his money with the best advertising.The fact that Google produces so many new programs that are reshapingadvertising, many advertisers don’t fully understand and know how to use the programs.So Google has begun to educate advertising agencies. Businesses use these agencies toproduce Ad campaigns and do all their advertising. Google is teaching these agenciestheir new programs so they will incorporate them in their advertising. In doing this,Google is producing more business for themselves.To further expand Google’s advertising capabilities they have decided to gooffline in many different ways. One way that Google is going offline is throughmagazines. Google bought pages in the magazines and then put these pages up for anauction on the Google site. Also, Google is using the radio to go offline. The companydMarc Broadcasting is a company bought by Google to buy radio time and auction thattime off on Google. Lastly they are using TV. Spot Runner has produced thousands ofAds in categories from automotive to clothing, which local advertisers can buy andcustomize. Google is using all of these programs to go offline, but they realize that forGoogle’s offline advertising to be like their online advertising they are going to have tobe able to apply real time feedback and auctions. If Google can imply these two things intheir offline advertising then they will have a lot of success in the offline