Pww

| Portfolio AI Insights

pww.comGoogle Inc. Presents at Morgan Stanley Technology, Media and Telecom Conference, Feb-28-2011 09:30 AM - NasdaqGS:GOOGL

NasdaqGS:GOOGL

Neal Mohan [Executives] 💬

During the presentation and question-and-answer session, Neal Mohan, Google's VP of Product Management, discussed various aspects of Google's Display advertising business. Here’s a detailed summary of his remarks:

Introduction

  • Responsibilities: Neal is responsible for Google's Display advertising products, including mobile platforms, YouTube, and the Google Content Network.
  • Background: He joined Google through the DoubleClick acquisition nearly three years prior to the presentation.

Definition of Display Advertising

  • Scope: Display advertising encompasses non-search advertising, including graphical ads, video ads, and mobile Display ads.
  • Purpose: It enables advertisers to reach a broad audience with various formats and targeting options.

Advertiser Perspective

  • Google Display Network: Offers advertisers performance at scale with optimization and measurement tools.
  • DoubleClick Products: Used for managing campaigns across the internet.
  • New Tools: Invite Media and Teracent facilitate data-driven media buying.

Publisher Perspective

  • AdSense: A turnkey monetization tool used by over 2 million publishers.
  • DoubleClick Platform: Utilized by premium publishers for selling their own advertising and monetizing unsold inventory through Google.

Ad Exchange

  • Functionality: Serves as the glue between advertisers and publishers, enabling end-to-end platform for buying and selling Display advertising.

Success Factors

  • Broad Reach: Google Display Network reaches approximately 80% of all internet users worldwide.
  • Targeting Options: Comprehensive targeting capabilities, including contextual and audience-based advertising.
  • Creative Formats: Offers a variety of creative formats, including rich media ads and video.
  • Measurement Tools: Precise measurement of advertising efficacy.

Market Growth

  • Current Size: Global Display advertising market is estimated at $20-$25 billion.
  • Future Potential: Neal believes the market could reach $100 billion or more in the coming years.
  • Investment: Google has 1,000 engineers dedicated to Display advertising to eliminate complexity and attract more advertising dollars.

Revenue Sharing

  • Gross vs. Net Revenue: Google shares a significant portion of revenue with partner sites, while retaining a portion for its own operations.
  • Revenue Growth: As Google generates better performance for advertisers, it translates into higher revenues for publishers and Google.

Content Creation

  • YouTube: Largest publisher in Google Display Network, experiencing significant growth.
  • Innovation: TrueView product allows cost-per-view model, generating excitement among advertisers.

Ad Exchange Improvements

  • Non-Guaranteed vs. Guaranteed Inventory: Increasing demand for real-time bidding is closing the gap in value between non-guaranteed and guaranteed inventory.
  • Dynamic Allocation: Technology that allows publishers to direct impressions to the channel that generates the most revenue.

Agency Relationships

  • Changing Roles: Agencies are evolving to adapt to data-driven and real-time advertising models.
  • Agency Trading Desks: Emerging entities designed to leverage shifts in online advertising.
  • Technology Stack: Google provides a complete technology stack for agencies to buy media across various formats.

Privacy

  • User Control: Google emphasizes transparency, notice, and choice for users.
  • Ads Preferences Manager: Tool for users to manage and control the delivery of targeted ads.
  • Keep My Opt-Outs Extension: Chrome extension for opting out of industry-wide tracking.

Conclusion

  • Market Potential: Neal is optimistic about the future growth of the Display advertising market and Google's role in shaping it.

Jane Penner [Executives] 💬

During the Morgan Stanley Technology, Media and Telecom Conference on February 28, 2011, Jane Penner, presumably from Google's Investor Relations department, provided the following statements:

  1. Safe Harbor Statement:

    • Noted that comments and answers to questions may contain forward-looking statements regarding Google's business outlook.
    • Stated that actual results may differ from those made in any forward-looking statements due to a number of risks and uncertainties.
    • Mentioned that these risks are detailed in Google's public filings with the SEC.

  2. Webcast Replay Information:

    • Announced that a webcast replay of the session would be available on Google's Investor Relations website in a few hours.

  3. Resource Encouragement:

    • Encouraged attendees to make use of the Investor Relations website located at investor.google.com, where important information is routinely posted.