Google CEO from Q2 to Q3: Partnerships promised and delivered!
Google CEO Eric Schmidt is a man of his word, at least as far as his commitment to growing Google through partnerships. Schmidt extolled the power of partnerships at Google's Q2 earnings conference call in July:let's explore a little bit how the partnerships that we're developing -- not just the ad partnerships, which have been studied for many years, AOL and those sorts of things -- but a lot of the new partnerships.
Google CEO Eric Schmidt is a man of his word, at least as far as his commitment to growing Google through partnerships. Schmidt extolled the power of partnerships at Google's Q2 earnings conference call in July:
let's explore a little bit how the partnerships that we're developing -- not just the ad partnerships, which have been studied for many years, AOL and those sorts of things -- but a lot of the new partnerships. You can see how we're behaving with partnerships when you see the tremendously important Dell deal, Adobe deal, and others coming.
We're learning how to operate, learning how to build a stronger ecosystem. The strength of that ecosystem is central to our strategy, because we can't do it alone. We benefit by having the reach, impact, financials, and frankly, help from the partnerships, not just even the ones I named, but in content, in distribution and in access, all of which are announced with many, many more coming.
How did Schmidt deliver on his promise of "many, many more" partnerships? To mark the eve of Google's Q3 earnings report, here is a review of Google's partnership track record since July 21:
Google Deal with Viacom to Test Online Video Distribution, August 7
Google will distribute ad-supported content from MTV Networks to targeted website publishers, allowing publishers to showcase clips from premium programming like Nickelodeon's SpongeBob SquarePants and MTV's Laguna Beach to enhance the content on their websites...new model will provide users with new ways to experience content and create targeted marketing vehicles for advertisers...serve to promote programming that is available via cable, satellite and other distribution platforms carrying MTVN's on-air channels. The companies expect to be testing the model later this month. This venture marks the first time integrated video programming and advertising will be made available directly to Google's extensive AdSense network, which delivers targeted text and image ads to its network of websites and blogs. This also represents the first time clips from MTV Networks'...programming will be available to consumers widely across the Web on an ad-supported basis on sites outside MTVN's proprietary sites.
Google Exclusive Search Advertising Deal with FIM's MySpace, August 7
multi-year search technology and services agreement whereby Google will be the exclusive search and keyword targeted advertising sales provider for Fox Interactive Media's growing network of web properties including MySpace.com...Google to power web, vertical and site specific search for MySpace.com and the majority of Fox Interactive Media properties. Google will be the exclusive provider of text-based advertising and keyword targeted ads through its AdSense program, for inventory on Fox Interactive Media's network. Google will also have a right of first refusal on display advertising sold through third parties on Fox Interactive Media's network...
Under the terms of the agreement, Google will be obligated to make guaranteed minimum revenue share payments to Fox Interactive Media of $900 million based on Fox achieving certain traffic and other commitments. These guaranteed minimum revenue share payments are expected to be made over the period beginning in the first quarter of 2007 and ending in the second quarter of 2010.
Google-eBay Cross-Platform Deals, August 28
multi-year agreement to benefit both companies' collective communities of users, merchants and advertisers around the globe. The agreement consists of two primary components involving text-based advertising and "click-to-call" advertising functionality.
Specifically, Google will become the exclusive text-based advertising provider for eBay outside the United States. In addition, eBay and Google plan to integrate and launch "click-to-call" advertising functionality that leverage both Skype and Google Talk globally in each company's respective shopping and search platforms. The companies said the financial terms for certain components of the deal involve revenue sharing, but did not disclose specific details.
Google Integration Deal with Intuit's QuickBooks, September 13
strategic alliance designed to help millions of small businesses promote themselves online using a variety of popular Google services built into most QuickBooks 2007 products. The alliancecombines Intuit's deep knowledge and experience solving small business problems with Google's expertise and reach on the Web to help small businesses address their number one objective – attracting new customers.
For the first time, small businesses can use QuickBooks to market themselves online by listing their businesses on Google Maps, creating and managing advertising campaigns with Google AdWords and posting their products for sale on Google through Google Base – a free product listing service. Integrated into QuickBooks 2007, available this fall.
Google Music Video Distribution Deals with WMG and Sony BMG, October 9
Warner Music Group (WMG): strategic business relationship designed to give Google users the ability to stream on-demand WMG's extensive music video collection for free, through an ad-supported revenue sharing agreement, or to purchase videos online for download.
Sony BMG: strategic business relationship designed to make the music company's expansive music video collection available for online streaming at no cost to users. Starting this month, users can watch thousands of videos from Sony BMG Music Entertainment on Google Video. In the coming months, users will also be able to access content from its artists through Google's partner websites in its AdSense network.
Google Acquisiton of YouTube for $165 Billion in Google Stock, October 9
agreed to acquire YouTube, the consumer media company for people to watch and share original videos through a Web experience, for $1.65 billion in a stock-for-stock transaction. Following the acquisition, YouTube will operate independently to preserve its successful brand and passionate community.
The acquisition combines one of the largest and fastest growing online video entertainment communities with Google's expertise in organizing information and creating new models for advertising on the Internet. The combined companies will focus on providing a better, more comprehensive experience for users interested in uploading, watching and sharing videos, and will offer new opportunities for professional content owners to distribute their work to reach a vast new audience.