The "long tail" advertising principal key for Google, says executive

Tuesday, August 30, 2011

The "long tail" niche marketing principal is key to Google's(Nasdaq: GOOG) strategy in Latin America, the company's Chile general manager Eduardo Pooley told BNamericas.

The long tail, said the executive, is the model on which Google bases its business, with "thousands" of small advertisers offering products and services, like flowers, home delivery pizzas, language lessons, music for parties, handymen, etc. "We have around 6,000 active companies in Chile as part of this long tail. This shows that the verticals come from all sectors.

Regarding internet trends and verticals, the executive said that in Chile as well as in other regions, the key sectors in terms of advertising volume are tourism/travel, retail and finance.

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Pooley added that he believes that companies that advertise mainly in traditional media like TV, newspapers and radio but have a weak online presence are throwing their resources away.

According to Pooley, there are companies that invest less in the traditional forms of advertising that are winning business with their online presence. With growing internet penetration, the net is becoming not only an important channel for buying but also for researching for products, he said.

Online feedback about products is increasingly taken into account by other consumers in the buying process.

"We did a study where we saw that in Chile, eight out of 10 people that buy something in a shop, any product, check before online to make sure that's the best price and the best product," said Pooley.

The full interview with Pooley is available for subscribers in this week's perspectives.