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Andrew Goodman Interview

Discussion in 'Google AdWords' started by GuyFromChicago, Feb 21, 2006.

  1. #1
    GuyFromChicago, Feb 21, 2006 IP
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    SEMrush
  2. jedibusiness

    jedibusiness Peon

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    #2
    Very good interview. Thanks for the link =)
     
    jedibusiness, Feb 23, 2006 IP
  3. shorebreak

    shorebreak Peon

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    #3
    Andrew knows his stuff, that's for sure. My only observations:

    1) He says that analytics providers are going to feel pricing pressure. I agree that firms like Omniture, Coremetrics, Websidestory and others are going to be charging less, but not sure that'll happen immediately. My guess is the market pressure from Google Analytics and, frankly, too much VC money in the space, won't start to hurt pricing until late 2006 or mid-2007. Why? The perceived need on the part of advertisers/merchants to make an investment in the space is as strong or stronger than the need of all the analytics firms to grow.

    2) Andrew says he'd like to see bid management solution prices come down, and says rules-based bid mgmt should be free. On that point, I think you have to expect that

    a) consultants and agencies will root for technology commoditization
    b) technology firms will root for consolidation of services firms

    The reality is, both will happen, but the multiples for good technology firms with solid revenue growth and profits will always be much, much higher, and therefore there will always be a few bid mgmt firms who can charge a premium for premium valued delivered, in order to get to that higher valuation.

    -Shorebreak
     
    shorebreak, Feb 24, 2006 IP
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  4. GuyFromChicago

    GuyFromChicago Permanent Peon

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    #4
    Totally agree.

    The high end analytics solutions like the ones you listed above can do things that Google Analytics is still just dreaming of. The major analytics companies don't need to think about price reductions until Google Analytics is actually a comparable product...which at this time it is not.
     
    GuyFromChicago, Feb 27, 2006 IP