Google the new Microsoft

Amazing how in less than ten years the competitive threat to virtually every business can shift from Microsoft to Google. Most people I speak with in the media community wish Microsoft could figure out how to apply all their capabilities and resources to fix the problems of the internet from billing to ad serving, optimization to rich media. Unfortunately, the reality is that Microsoft is too busy chasing Google, for good reason - search represents 60% of online ad revenue - leaving all the little people to fix the woes of every publisher.

The bad news is that there are very few companies working on solving the challenges publishers face today. Why is that you ask? Well it is because most publishers are too distracted with cost cutting in hopes of saving their legacy business to invest meaningful time or money in their interactive business. That forces vendors to search for other customers willing to pay for their goods and services.

If this was just a market timing issue it wouldn't be so bad but this has been going on for years. Publishers prefer to get paid - most vendors they work with (except for maaybe DoubleClick and Omniture) write them a check every month for advertising, share of inventory or audience or through some slick rev share relationship. This is a slippery slope, it disconnects publishers from the market and most importantly what their customers and advertising clients value.

Publishers need to evaluate all their vendor relationships, consider rethinking their investments in people, technology and process developing a strategy that gets them back in the game. If that happens companies large and small may refocus their innovation efforts on the publisher and give them a fighting chance.