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Most ads are managed and sold by other agencies. Google redirects all but the largest accounts to its channel partners. And selling media is nothing like enterp

Most ads are managed and sold by other agencies. Google redirects all but the largest accounts to its channel partners. And selling media is nothing like enterprise infrastructure.

scarejunba 7y ago
Just want to say that I always see you post on ad-tech related stuff and your comments belong to the infinitesimal fraction of ad-tech stuff on this site that is informed and not just the result of pure speculation.
- manigandham 7y ago
  Thank you, I appreciate the note. It's based on 12 years and 4 adtech companies worth of experience in the industry, and now trying to change it from the inside.
disgruntledphd2 7y ago
Like it is and it isn't right? Some media sales-people would be super comfortable selling enterprise stuff (because a bunch of them started at MS/Oracle/Sun etc). The front-of-house salespeople would be fine, so you'd just need to hire the back-of-house sales-people (normally the more technical ones). The real problem is that Marketing and IT are very different departments, and it's hard to change contacts in one area into opportunity in another (I think this applies to both Google and FB). But mostly, to answer the titular question: it's about margins, nothing else. There's less money in cloud than in ads. So, like Google, they'll probably do something like this when investors start to worry about the ad market.
- manigandham 7y ago
  Sure but it's rare to successfully transition. The ad market is very political and depends on connections, not product. Google salespeople are also known as "order takers" since they don't really need to sell, companies always buy them by default. It's the opposite in enterprise tech where Google is the underdog and needs to do quite a bit of selling, and base it on the strength of the product and functionality. GCP is hiring strongly for enterprise/software sales experience but struggling with the leadership to use them effectively. There's plenty of margins in cloud though. AWS has proven it and GCP has the potential to be bigger than their ads business, but I agree that it's not currently as lucrative today.

Most ads are managed and sold by other agencies. Google redirects all but the largest accounts to its channel partners. And selling media is nothing like enterprise infrastructure.

scarejunba 7y ago

Just want to say that I always see you post on ad-tech related stuff and your comments belong to the infinitesimal fraction of ad-tech stuff on this site that is informed and not just the result of pure speculation.

manigandham 7y ago
Thank you, I appreciate the note. It's based on 12 years and 4 adtech companies worth of experience in the industry, and now trying to change it from the inside.

disgruntledphd2 7y ago

Like it is and it isn't right? Some media sales-people would be super comfortable selling enterprise stuff (because a bunch of them started at MS/Oracle/Sun etc). The front-of-house salespeople would be fine, so you'd just need to hire the back-of-house sales-people (normally the more technical ones). The real problem is that Marketing and IT are very different departments, and it's hard to change contacts in one area into opportunity in another (I think this applies to both Google and FB). But mostly, to answer the titular question: it's about margins, nothing else. There's less money in cloud than in ads. So, like Google, they'll probably do something like this when investors start to worry about the ad market.

manigandham 7y ago
Sure but it's rare to successfully transition. The ad market is very political and depends on connections, not product. Google salespeople are also known as "order takers" since they don't really need to sell, companies always buy them by default. It's the opposite in enterprise tech where Google is the underdog and needs to do quite a bit of selling, and base it on the strength of the product and functionality. GCP is hiring strongly for enterprise/software sales experience but struggling with the leadership to use them effectively. There's plenty of margins in cloud though. AWS has proven it and GCP has the potential to be bigger than their ads business, but I agree that it's not currently as lucrative today.