Diving into the latest trends and trends in digital advertising, Google’s executive chairman Eric Schmidt has a few ideas on what he thinks digital ad executives need to do to make the most of their platforms.
“It’s important to make sure that the business model is working,” Schmidt told the audience at a panel for digital marketers and advertisers.
“We need to keep the value proposition strong.”
For instance, he said it’s a challenge to find ways to increase revenue with advertising that is more expensive than a competitor.
“That is the challenge for digital ad marketers: the pricing that you charge is more important than the value,” Schmidt said.
“That is a challenge that we need to address.”
Digital marketing can be expensive.
Some digital ad agencies are asking for a 20% discount on their revenue to pay for a 30-day trial.
The big players in digital, like Facebook, have been trying to get away from digital ad costs.
“There’s a lot of money being spent on advertising that we can do better than.
And there’s a big difference between doing a good job and a good service,” Schmidt added.