2008 prediction number 1

One of the things that I have been looking forward to since starting half-geek earlier in 2007 is making a bunch of predictions for the new year. It's going to be interesting to look back in January 2009 and see how accurate my predictions were.....

So what I have decided to do is make 4 predictions for the web 2.0 space in New Zealand for 2008. These predictions are made with business strategy at top of mind. Please comment away and tell if you think I am right wrong or whatever!

This post will detail the first of my predictions and the following three will follow (one each day finishing on friday). So here we go

Prediction # 1 - $$ Adwords $$

The hard cores may not understand why I want to talk about adwords. To those who have been involved in online marketing for a while,  adwords is a staple ingredient of their online media mix. My first experience with Adwords was way back in 2003, yet to most of the New Zealand business community, the core advertising product that has made Google what it is today is still an un-tapped gold mine.

So I am making what I consider to be a very safe opening prediction: 2008 is the year that New Zealand businesses will spend up large on Adwords and properly adopt this marketing tactic. I appreciate that their are already a number of businesses that consider their spend on Google Adwords to be significant. I am not suggesting that they aren't significant enough. What I am suggesting is that the key 'spenders' in the online media space (The corporates) are going to rapidly adopt Adwords in 2008 and this will have somewhat of a 'tipping point' effect for the Adwords product in New Zealand.

My predictions are supported by the fact that Google now have a significant presence in New Zealand. They have a sales team based in Auckland and they are officially on the war path, hunting for business from the top online media spenders in New Zealand.

It must be so great to be a sales person for Google in a place like New Zealand. Credibility would not be an issue, you would almost be instantly considered as an expert based purely on your business card (and google's highly respected recruiting policies).....your offering a measurable advertising product that is backed by infinite case studies of success....You have no competition (in the NZ market)......

Another point that must be noted is the rise and rise of the traditional agencies' awareness of the importance of the Adwords product. The demand for experts in this space is high. The big name agencies here in NZ have recruited internationally, dragging back kiwis who have first hand experience in this 'new media' from places like London and New York.

Whilst traditional agencies lack the depth and breadth of experience in Search Engine Marketing and Adwords, one thing they do know how to do well is SELL. They have guru like master salesman that can pitch and sell ice to Eskimos. This will, of course, boost the buzz around the Adwords product. The question is can these agencies control the Adwords budget line, or will Google New Zealand take the lead of their European strategy and angle towards cutting agency commission and dealing directly with big Adwords clients?

I am predicting big things for the bottom line of the Google New Zealand P & L in 2008.