Eric Schmidt

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Why is Google putting so many ads on TV?


Almost every time I’ve turned on the television in the past week, I’ve seen an ad for Google Chrome. What started earlier this year as a sprinkling of ads here in the United States has become a torrential downpour.

For me, Google has long been one of the poster children for a new breed of company born in the age of the Internet that doesn’t need to rely on traditional advertising to build its brand.

So, as I’m sure many of you have, I started asking myself, why exactly is Google doing so much television advertising?

It’s no secret that Google has historically not been a fan of traditional advertising. In fact, it wasn’t so long ago (2006) that Google Chairman Eric Schmidt called advertising “the last bastion of unaccountable spending in corporate America.”

And Google is certainly an interesting paradox: a company that historically does little paid advertising itself, yet makes billions of dollars selling advertising to others.

I did a little research and pieced together some history about Google and television ads.

In May, 2009, the first ad for Google Chrome appeared on television in the United States. In the blog post announcing the new spot, Google sounded almost apologetic, saying the ad was originally just developed in Japan as a web video, but it sparked a conversation and received good feedback. So Google decided to run it as a TV ad, in part as a test of the new Google TV Ads program.

The next year you may recall that Google actually bought an ad on the Super Bowl, which they called Parisian Love.

Eric Schmidt announced the spot on the Google blog, justifying it by saying “we liked this video so much, and it’s had such a positive reaction on YouTube, that we decided to share it with a wider audience.” But his Twitter announcement of the ad acknowledged that this was quite a unlikely strategy for Google:

Eric Schmidt hell frozen over

Earlier this year, Google began developing the current set of ads for Google Chrome in partnership with advertising agency BBH.

The work is compelling, as advertising goes (here’s a link to all of the spots on YouTube, if you want to check them out). Perhaps the most thoughtful one highlights the It Gets Better Project, which has resulted in thousands of videos being created for YouTube that are intended to give hope to LGBT youths.

The Dear Sophie spot has been viewed on YouTube over 3 million times, and there are ads featuring Lady Gaga (4 million page views) and Justin Bieber (almost 2 million pages views) as well. The newest pieces highlight The Johnny Cash Project (where artists are collaboratively developing a tribute music video for Cash’s song “Ain’t No Grave”), Frank Restaurant in Austin, TX (mmm…. so delicious… don’t pass up the waffle fries), and Angry Birds.

From a branding perspective, the ads make sense–as stories. By telling these stories, Google and BBH are invoking the transitive property of branding to associate Google Chrome with some incredibly innovative collaborative efforts. The math looks something like this:

Lady Gaga = open, collaborative, innovative.

Google Chrome = open, collaborative, innovative.

Therefore, if you like Lady Gaga, you’ll like Google Chrome.

Certainly getting ten million combined pageviews on YouTube for the campaign is pretty awesome—and free—so why spend the big money to put these ads on television too? Isn’t the beauty of the Google / YouTube model that it can be effective at eliminating the need for traditional advertising?

Perhaps Google is trying to expand its brand awareness with people it can’t reach via YouTube? But why spend the money on Google Chrome, a web browser (and a term Google itself has shown that almost no one understands), rather than the Google brand itself?

My first thought was that perhaps Chrome was losing the browser wars and the television ads were a desperate attempt to keep the Chrome ship afloat.

It turns out that is about as far from true as you can get. Chrome is killing it. According to StatCounter, Chrome is rapidly gaining new users at the expense of Internet Explorer and Firefox both.

StatCounter Brwoser graphic

In fact, some predict Chrome usage will actually exceed Firefox usage by the end of this year.

A victory for traditional advertising?

Not so fast. Here’s a good post from late this summer highlighting Chrome’s rapid ascent and documenting the reasons for it. From the post:

“Online, Google of course has a huge marketing advantage over basically everyone else since it can recommend its Chrome browser on its web properties such as Google Search, YouTube, etc. Not even Facebook can compare with Google when it comes to sheer web presence, reaching over a billion users.

That said, Google has clearly built a very good and highly popular product. If people didn’t like Chrome, the browser wouldn’t be able to retain users to the extent it seems to be doing.”

So the two reasons for Chrome’s success come down to:

1) the browser is good

2) it can leverage the power of Google’s online advertising engine (yes, the same engine that millions of companies have raided their traditional media advertising budgets to spend more on, causing the rise of Google in the first place).

But I didn’t see Google’s television advertising strategy mentioned here, or in any other article I read, as an explanation for Chrome’s rapid ascent.

Let me sum things up:

I get why Google is making the effort to create stories like these and share them with the world. Storytelling is an extremely powerful tool for building brands the open source way.

And overall, I like the approach Google is taking—many of the stories are really well told, and the focus on open, collaborative projects and artists (not to mention tasty hot dogs) sits well with me.

But I can’t for the life of me figure out why Google spending so much of its shareholders’ money putting these ads on TV.

If you have the answer, I’d love to hear it.

[This post originally appeared on opensource.com]

Who will be the new face of openness at Google?


Last week, Google Senior Vice President of Product Management Jonathan Rosenberg resigned after almost 10 years at the firm. While the comings and goings of tech industry executives aren’t typically that interesting to me, I found this news fascinating for a couple of reasons.

First, Rosenberg says that one of the things he plans to do is write a book with ex-Google CEO (and current Executive Chairman) Eric Schmidt. The subject? According to an article in the Mercury News, they’ll be writing about “the values, rules and creation of Google’s management culture.”

Now that is a book I’d like to read. Google is in many ways an ideal case study of the open source way as applied to management practices, and, while many have written books about Google already (notably this one by Bernard Girard and this brand new one by Steven Levy), I’d love to see Schmidt and Rosenberg’s take (and I hope we can corral one of them for a webcast on opensource.com when the book comes out).

I’m especially interested in their view of how the existing Google culture changed (or didn’t change) during their tenure. Especially since it has been reported that Rosenberg’s top-down management style didn’t mesh well at first with the existing engineering-led culture.

But what I find to be the even more interesting question in the short term is, with Rosenberg leaving, who will be the new face of openness at Google?

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What does Google’s management change say about the open source way?


Last week, Google CEO Eric Schmidt announced in a post on his blog he was stepping aside and Google co-founder Larry Page would take on management of Google’s day-to-day operations as the new CEO. Although Schmidt is staying on as Executive Chairman for now and will continue to have an ongoing role in the company, many including myself, were surprised by the news.

I see Google and Red Hat both as fantastic poster children for openness as a successful business strategy. I’ve written many times about how the open source way deeply impacted our work at Red Hat even beyond building software. I’ve also written about Google and the open source way, and pointed to this famous post from Google’s Senior VP of Product Management Jonathan Rosenberg explaining Google’s commitment to openness.

But what does Google’s management change say about the open source way?

Before you answer, here are a few things I’ve read this week and found interesting:

[Read the rest of this post on opensource.com]

Is open source creating jobs?


On the heels of last week’s White House Jobs and Economic Forum, President Barack Obama announced a series of job creation ideas today in a speech at the Brookings Institution.

As I mentioned in my last post, Red Hat’s Jim Whitehurst was one of two technology industry CEOs who attended the White House forum last week, the other was Eric Schmidt from Google. Two things Red Hat and Google have in common? We are both strong supporters of open source and we are both hiring.

But this morning I had another thought– beyond the jobs at Google and Red Hat, are we– and other companies in the open source community– helping create jobs at a broader level? Meaning, are the products, services, and innovations of open source companies creating job opportunities for people who use what we make?

To find some data, I turned to Indeed.com, a search engine for job seekers that also has a fascinating job trends tool you can use to search on how often a particular term appears in job listings.

As a baseline data point, I looked at the chart for “receptionist,” a common job that might be a decent bellwether for job trends. The chart looks pretty much like you might expect:


receptionist Job Trends graph

Not great news for any receptionist looking for work. This term had once appeared in almost 2% of job postings, now it is hovering right below 0.8%.

Next, for some overall industry perspective, I looked at their page on Information Technology job trends. Not a lot of good news here either, unfortunately. These two pieces of information were disturbing:

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Jim Whitehurst: How to create jobs the open source way


Fantastic blog post by Jim Whitehurst today on redhat.com called Creating jobs the open source way. As Matt Asay reported yesterday, Jim Whitehurst was one of only two technology CEOs present at President Obama’s Jobs and Economic Forum (the other was Eric Schmidt of Google) at the White House.

Red Hat CEO and President Jim Whitehurst

In his post, Jim makes a clear link from the open source way to innovation to jobs. I love the closing paragraph, which I’ve included below:

“Red Hat has built a successful, growing S&P 500 business on the power of open source, not just as a development model, but as a business and organizational model. While ours isn’t the only solution, I do believe business, government and society can unlock the value of information and create good, long-term jobs by sharing and working together.”

The White House has streaming video of all of yesterday’s events here.

I also found this article, which provides further information on a few of Jim’s points about national broadband infrastructure development, very interesting.

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