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Google net gain from Obama campaign
May 29, 2008
Google may be among the top ten donors to Barack Obama’s presidential election campaign, but it has received around 10 times its contribution back from the Illinois senator in advertising on its properties in the first quarter.
Federal Election Commission data compiled by ClickZ’s interactive marketing research network shows the Obama campaign spent $2.94m between January and March on Google ads.
The figure represents 86 per cent of Obama’s total estimated online ad spend of $3.4m in the first quarter.
Yahoo and Microsoft picked up the bulk of the remaining revenues, while Facebook received a measly $26,000.
Google’s lobbying arm and employees have contributed $309,000 to the Obama campaign to date, according to the Center for Responsive Politics, making it the eighth largest donor.
Microsoft is the only other tech company in the Top 20, contributing $209,000.
This may seem to be a substantial amount of money but it’s just a small shift . The campaign dollars is small when compared to the amount spent on TV , Magazines and Radio or what many consider traditional media .
The problem with the purchase of traditional media time has to do with the separation of the news departments and the advertising or sales department . It’s estimated that in 2006, $2.3 billion was spent on political and issue-advocacy TV commercials. It’s easy to see how the news is almost non existent on any real issue . If they were to adhere to the basics of journalism without censorship then the company faces the real possibility that the cash cow could go to another pasture to graze . These are very real fears and they are understood . After spending 8 years in the radio broadcast industry , I learned first hand what having a former sales person as your General Manager will do to the content of the news .
Now where does that leave Google , Yahoo and MSN along with the Social Networking sites ? Well that is a tricky subject because with the accept ion of Google all the major search engines have news on the landing page of their site . Google does have a news section but you must click the link in order to get to the page . The unfortunate mind set is that the cash cow could go to another pasture to graze if we don’t milk her right . As stock holder influence increases , your profit margin needs to as well and that leaves the company no room for error . Make money or your out .
There is no easy answer to the problem of political finance . But it’s a great subject that does need more logical discussion .
Thank you for your time if read this whole post .
Posted by: Bryan Burch | July 17th, 2008 at 12:42 am | Report this comment