Wednesday, August 21, 2013

Google Goes Old-School with Snail Mail Advertising

Image: www.thinkprogress.org
I just received a form letter from Google (GOOG), one of the biggest beneficiaries of Web advertising, encouraging me to make better use of its online advertising services.

I found it quite ironic that the online juggernaut spent money on snail mail in an effort to get me to "give it a go," as the mailer exhorts. (After all, this blog is part of the Google suite of online services). 

Adding to the humor, Google is offering its AdSense clients a promotion that provides a $100 advertising credit to people who spend $25. Google is actually discounting a service in hopes of luring more business. (Its a very traditional marketing gimmick for a tech firm.)

Google, you are becoming so old-fashioned and traditional in your advanced age.

"You might be surprised at the number of people who are searching Google for exactly what you have to offer," Brett Willms, a member of the company's AdWords team, wrote in a form letter included with my offer.

I am moderately surprised at Willms' assertion about Google search. More importantly, I am significantly surprised that Google is kicking it old school with snail mail, a form letter and a promotional campaign for online advertising.

I am far from naive; Google must advertise to drum up business and spread the word about new products and services. In fact, the company was among the 50-biggest advertisers last year, with a projected budget of $340 million, according to Ad Age. That represented a roughly 66% spike from 2011. The company reportedly spent just $56 million in 2010.

The bulk of Google's spending involved online ads, though television spots made up roughly one-third of its marketing expenditures in 2011, according to Kanter Media. Beyond that, its typical ad strategy has featured newspaper and magazine ads. So mailers seem atypical.

So what does this all mean? One could assume that postal delivery is poised for a comeback now that the powerhouse such as Google is making use of traditional mailers. I find that highly unlikely.

Maybe this was the only way they could reach me? Nope. Google clearly has my email ... they probably know everything there is to know about me.

I would surmise that Google is getting to a saturation point in terms of its online reach, particularly as it pertains to marketing AdSense. A company can only send so many online messages, or display pop-up boxes, before they turn someone off to the product or service. 

My best guess is that online ad spending is slowing down for some reason. Google warns about advertising's cyclical nature in quarterly regulatory filings. So this postal campaign could be another attempt to mine revenue with a more traditional form of marketing.

A mailer is a more passive way of pitching a product, meaning it isn't as "in your face" as a pop-up ad. That is the major head-scratcher for me. Why is Google employing an antiquated form of communication to market to a web-savvy customer? And why are they sending out letters, when a hefty percentage are likely to end up in the bottom of a recycling bin?

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