Google is unlikely to displace agencies — and probably has little incentive to go that route — but its wide-ranging ambitions could mean it encroaches on agency turf. Witness Google’s recent deal with Heineken to use its many digital platforms to achieve “brand-building reach and the ability to carefully target their audience.”
That sounds a lot like the work of a digital agency, but Google’s forte is not, nor will it ever be, the kind of expertise necessary to create, manage and optimize digital campaigns for a major brand. Brands will probably never use a single source as agency and ad exchange, but they do want to partner with Google on the elements of digital advertising where it holds an immeasurable competitive advantage. Google has unrivaled access to search and behavioral data.
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