The Wall Street Journal
) has recently decided to allow
) to place measurement tags on advertisements running on its
Nielson enables marketers to track the performance of online ads
in terms of the number of people viewing the ad and the frequency
at which they are viewed. With the easy availability of Internet
on tablets and smartphones, there has been a significant increase
in the number of people viewing video ads compared to television
This has also led advertisers to shift their marketing focus
to the online channel. Nielson provides relevant data to
advertisers such as demographic data about who sees the ads,
information that it gets partly through a partnership with
Google will now allow Nielsen and comScore to measure its ads,
but Nielsen is more significant because it already has a
measurement system for TV. Advertisers have been testing the
online video market due to growing Internet usage in the recent
past. But they need an independent platform to determine the
effectiveness (ROI) of ads on the two platforms. Since Nielsen
already tests for TV and many advertisers use this service, its
simultaneous measurement on YouTube will allow comparisons.
Prior to this announcement, no outsider was allowed to place tags
on Google's YouTube service. On the contrary, Google relied on
its own measurement of ads running on the video-sharing website.
Though Google did not disclose why it took so long to allow
tracking, industry-insiders believe that the decision had
something to do with Nielson's close association with Facebook,
which happens to be a fierce competitor of Google.
In the meantime, Google continues to innovate. With the recently
launched update to Google's search application for devices
) mobile operating system, people will be able to avail a unique
facility by which they can set reminders on an android device at
home and later receive them on an iPhone.
Google is a market leader in online advertising and it has been
trying to explore various ways to diversify its revenues and
fight competition. Google continues to acquire smaller companies
with specialized technology to boost its different offerings. In
Feb 2013, it acquired Channel Intelligence for $125 million to
boost its e-commerce business.
Earlier this year, it acquired an infrastructure startup
company, Talaria Technologies, to boost its cloud offerings.
Google also acquired a mobile mapping and navigation company -
Waze Inc. - for about $1.1 billion.
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Google reported gross revenue of $14.89 billion in the third
quarter of 2013, up 5.6% on a year-over-year basis. The
company has expressed its intention to increase investment in its
core products in the future.
Currently, Google has a Zacks Rank #3 (Hold).