Here’s one to watch. Abbey Klaassen, one of my colleagues at AdAge, has some breaking news about Google’s newest high-profile hire: Andy Berndt, who was co-president of Ogilvy & Mather’s New York office. Google’s yet to make an official release, but Abbey writes:
 There has been much speculation over the past year whether Google would try to get into the agency business. The new global unit isn’t being called an agency, but any unit offering creative consultation and account services could be considered one. Interestingly, Google had been trying to lure more creative talent to the company over the past year, according to ad industry executives familiar with the search giant.
From Google’s perspective this make sense, especially as it tries to lure more brand advertisers accustomed to deep creative and research capabilities in their agency partners. Agencies, of course, will worry (too much) about being disintermediated. But you’ve probably heard this one before….
3 responses so far ↓
1 md // Sep 18, 2007 at 9:41 am
You don’t hire someone with Andy’s background to do something non Agencyesque.
2 Avi Dan // Sep 19, 2007 at 4:49 am
Perhaps. But why would Google want to get into a low margin and flat growing area even if the volume is high? And give up its Swiss-like position? If the Google agency lands Colgate, will P&G continue to place search ads through it. Still, it’s possible, and it is also likely that they’ll buy an agency next if they are going down this route. IPG? Wieden?
3 md // Sep 19, 2007 at 9:55 am
There is no reason why Google needs to be at the mercy of the same economic models deployed by the major holding companies. If anything, Google has shown the ability to re-think many areas, introducing a true results/performance-based approach to many facets in which they do business in.
Leave a Comment