I just came across this article "Google skimps on its own advertising" disclosing some very interesting numbers showing how cheap Google is when it comes to their advertising budget. As the leader in the online ad network, Google itself is spending less on % of its sales to its competitors like Yahoo or Ebay. Yet it has built a great platform asking advertisers to put in more money but are they really believing in this?
Internet Marketing Spending
| Company |
% of Sales |
$ Amt Marketing Budget |
| Google |
8% |
$849 Mil |
| Yahoo |
> 20% |
$1,300 Mil |
| Microsoft |
> 20% |
$11,500 Mil |
| Ebay |
15% |
$871 Mil |
Source : Globe and Mail
The author of this article calls Google a miser "have remained marketing misers even as Google accumulated a cash hoard that now stands at $12.5 billion."
From the very beginning, Google has built its great brand and business by cheap word-of-mouth marketing. They have not changed their approach since.
So what's the lesson here? should we all go cheap like Google or pay them up so they will make another $4 Billion in earnings this year!?