Google launches rare ad campaign to sell more apps

August 3, 2009 By MICHAEL LIEDTKE , AP Technology Writer Google logo

Enlarge

Google logo

(AP) -- Google Inc. is so well known that it has become a synonym for search, making advertising unnecessary. Getting businesses to buy Google's online suite of office applications requires a little more elbow grease and marketing muscle.

In a rare commercial campaign, Google is leasing billboards along major highways in New York, San Francisco, Chicago and Boston this month to promote a bundle of business applications that sells for $50 per worker annually. A different message will be displayed each weekday through August, starting with Monday morning's commute.

Google has been peddling its "apps" package since 2007, but only recently realized it needed a more aggressive sales pitch.

"People don't necessarily think of Google when it comes to how we can help companies," said Michael Lock, director of sales and operations for Google's enterprise division in North America.

For now, Google doesn't plan to advertise its business applications in other offline media like magazines, newspapers, television or radio, said Andy Berndt, managing director of the company's creative labs.

The billboard campaign underscores just how determined Google is to lure corporate customers away from Microsoft Corp.'s e-mail service and industry-leading applications for word processing, spreadsheets and scheduling. To a lesser degree, Google also is targeting IBM Corp.

Google has been escalating its attack against Microsoft just as its is under assault.

Hoping to get narrow Google's commanding lead in the online ad market, Microsoft last week forged a search partnership with Yahoo Inc. in a deal that still requires regulatory approval. also upgraded its search engine in June and renamed it Bing - a change that is being trumpeted in a $100 million marketing campaign.

By contrast, Google has rarely bought advertising to promote its search engine since its inception nearly 11 years ago.

The Mountain View, Calif.-based company instead has relied primarily on word-of-mouth and free media exposure to establish the search engine as the Internet's most powerful tool. The strategy has worked well, with the advertising connected to its search engine generating $10.7 billion in revenue during the first half of this year.

Software licensing, including Google's sales of business applications, and revenue from other non-advertising sales accounted for just $365 million in revenue during the same period.

Google says about 1.75 million businesses, schools and government agencies use its online applications, but most of them rely on a free version that isn't as powerful as the subscription package. That's a small fraction of how many companies license Microsoft's software.

Selling applications available over Internet connections has proven difficult because many companies still prefer to install the programs on their own computers for security reasons.

The resistance has been easing, though, as the 19-month-old recession ramps up the pressure to lower costs. That is making more companies willing to experiment with online applications, a concept known as "cloud computing."

Google evidently believes its message is catching on. The company hopes to increase its business sales force by about 25 percent by hiring about 100 workers at a time Google's overall payroll has been shrinking. ended June with nearly 400 fewer workers than it had in March.

"The expansion is needed to handle the interest and demand we are seeing in Google's apps," Lock said.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


   
Rate this story - 2 /5 (1 vote)


August 3, 2009 all stories

Comments: 0

2 /5 (1 vote)

  • hide
  • Related Stories

  • Does Google's New Tagline Imply a Shift to Enterprise Apps?
    created May 16, 2007 | popularity not rated yet | comments 0
  • Google glitch disrupts search engine, e-mail
    created May 14, 2009 | popularity not rated yet | comments 0
  • Google to expand TV ad service to online video
    created Mar 27, 2009 | popularity not rated yet | comments 0
  • Earnings preview: Bar set low for Google's 2Q
    created Jul 14, 2009 | popularity not rated yet | comments 0
  • Microsoft to unveil new search engine Kumo next week
    created May 20, 2009 | popularity not rated yet | comments 0



  • hide
  • Relevant PhysicsForums posts

  • how to welding thin SS foil (0.002")?
    created Feb 08, 2010
  • Civil Engineering is hazardous to your career prospects
    created Feb 06, 2010
  • hot water circulator, kitchen faucet, ? mixing
    created Feb 06, 2010
  • Static or dynamic pressures in duct
    created Feb 06, 2010
  • More from Physics Forums - General Engineering

Other News

The power of 'random'

The power of 'random': 'Seemingly loopy' technique could dramatically improve communications networks

Technology / Computer Sciences

created 18 hours ago | popularity 4.8 / 5 (9) | comments 5 | with audio podcast

A radical new approach to the design of communications networks, called "network coding," promises to make Internet file sharing faster, streaming video more reliable, and cell-phone reception better -- among ...


'Revolutionary' water treatment units on their way to Afghanistan

Technology / Engineering

created 12 hours ago | popularity 4.4 / 5 (7) | comments 4 | with audio podcast

The United States Army has taken delivery of the first two units of a "revolutionary" waste-water treatment system that will clean putrid water within 24 hours and leave no toxic by-products, according to scientists at Sam ...


Android

Google developing a translator for smartphones

Technology / Software

created 19 hours ago | popularity 4.8 / 5 (9) | comments 3 | with audio podcast report

(PhysOrg.com) -- Google is developing a translator for its Android smartphones that aims to almost instantly translate from one spoken language to another during phone calls.


Imec and Holst Centre achieve breakthrough in battery-less radios

Imec achieves breakthrough in battery-less radios

Technology / Semiconductors

created 13 hours ago | popularity 4.9 / 5 (13) | comments 1 | with audio podcast

At today's International Solid State Circuit Conference, Imec and Holst Centre report a 2.4GHz/915MHz wake-up receiver which consumes only 51µW power. This record low power achievement opens the door to battery-less ...


GMail logo

Google gives Gmail social-networking 'Buzz' (Update)

Technology / Internet

created 14 hours ago | popularity 5 / 5 (1) | comments 1

Google is giving its free email service a "Buzz" by adding social-networking features which could challenge the supremacy of platforms like Facebook and Twitter.