Edited transcript of Google (GOOG) at Credit Suisse Technology Conference
Google’s Neal Mohan, Vice President of Display and Video Advertising, presents at Credit Suisse Technology Conference on December 2, 2014 11:15 AM ET. Following are the webcast audio and the associated transcript of the event…
Listen to the Webcast Audio MP3: Google (GOOG) at Credit Suisse Technology Conference – Webcast Audio
Stephen Ju – Analyst, Credit Suisse
Good morning everybody. I think we’ll go ahead and get started. I am Stephen Ju from the Credit Suisse Internet Equity Research team. Joined on the stage by the team from Google I think but we before we start we’re going to have Ellen read off the Safe Harbor statements so.
Ellen West – IR
I’ll quickly cover the Safe Harbor. Some of the statements we make today may be considered forward-looking including statements regarding Google’s future investments, our long-term growth and innovation, the expected performances of our businesses and our expected level of CapEx. These statements involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that these forward-looking statements reflect our opinions only as of the date today and we undertake no obligation to revise or publicly release the results of any revisions to these forward-looking statements in light of new information or future events. Please refer to our SEC filings for a more detailed description of the risk factors that may affect our results.
Stephen Ju – Analyst, Credit Suisse
I am joined on the stage by Neal Mohan who is the Vice President of Display and Video Advertising. So thanks for joining us Neal and welcome.
Neal Mohan – VP, Display and Video Advertising
Thanks for having me.
Stephen Ju – Analyst, Credit Suisse
Great. So I don’t think investors are as familiar with you. I think the industry players are familiar with you, but I don’t think they are as familiar with you. But I think of you as the guy who built the entire display stack at Google. But will you talk a little bit more about your background as well as at DoubleClick and what do you do on a day-to-day basis?
Neal Mohan: Sure. So I’ll do that fairly quickly. So my name is Neal Mohan, I am responsible for what at Google we call display and video advertising products, which are generally speaking those products out of our core search ads set of products, so outside of the ads that we run on google.com. And so my portfolio includes advertising on YouTube across the Google display network, our AdSense sites and of course our DoubleClick platform, our programmatic solutions both for the sell side, the publishing side as well as for the buy side, the advertiser and agency side.
I came to Google when we sold DoubleClick to Google about nearly coming up on seven years ago now, with really as Stephen said the purpose of building out a display and video advertising business and capability for the company which is what I have been responsible for and leading over the course of the last several years.
Stephen Ju: Got you, so seven years on now, it’s a lot of water under the bridge now. But what do you think were the most crucial sort of product developments for Google in that meantime? And where do you think you still have a lot of work to do?
Neal Mohan: Yes I mean I think that when I started — when we at Google really started sort of growing the display and video business, it was nascent – AdSense which is kind of the kernel of our display business was around. We were working with publisher websites but putting together I think sort of the deep relationships and customer expertise that we had on the DoubleClick side of the business with sort of Google technology and the scale as represented by AdSense and AdWords into kind of a unified offering that works for 2 million plus Web publishers, app developers from the smallest sort of blogs and app developers to multi-media sort of publishing conglomerates on one end and then having a solution that caters to the smallest mom and pop advertisers via our AdWords on display offering to the largest agency holding companies via our DoubleClick suite on the high-end.
Having that sort of comprehensive complete solution, I think has been our largest accomplishment and throughout that process we’ve remained very focused on one thing, which is what do our customers need, both on the buy side and the sell side, how can we deliver to them a comprehensive solution across display, video, mobile, search et cetera. And that’s what we’ve been focused on. And so that’s been I think sort of the kernel or sort of the key ingredients of our success over the course of the last seven years.
In terms of kind of new opportunities, I think one of the areas that I am particularly interested in and that we’re very focused on is really cracking the brand advertising nut for digital. And so if you think about sort of the overall sort of display or overall advertising pie globally there’s estimates between $600 billion to $800 billion, digital predominantly has addressed about one-half of that which is the direct response portion of the pie. And so the opportunity before all of us is that other half of the pie which is brand advertising, predominantly spends on television today, but that represents a huge opportunity not just for Google but for all of our publisher and advertiser and agency partners, and so that remains something that I am extremely excited about. We’re obviously very focused on that with properties like YouTube, our programmatic buying solutions et cetera. And I think that’s where you’ll see a lot of product innovation in the years ahead.
Stephen Ju: Got you, when you bring up YouTube and brand advertising, I think we asked Nikesh this on an earnings conference call several quarters ago. And especially as it pertains to YouTube and brand advertising, safety as well as context, are two hugely important factors for brand advertisers. So it seems like given that given Google’s core technology competencies and I think of Google as those were the king of contextual advertising, I mean there remains a large opportunity to do the same for YouTube as well. And so you can signal to your advertisers, and say hey this is a safe place for you to be placing your ad dollars. So where are you on that sort of product initiative right now? How are you signaling to advertisers, yes you can spend your money here?
Neal Mohan: Yes, so the first thing that I will say is that, when we think about things like making sure that digital is a safe and kind of productive place for brand advertisers to spend money. We don’t think about it just in terms of how do we solve that problem for YouTube, we want to solve that problem for the entire ecosystem. Like I said we work with 2 million plus publishers who also are great places for brand advertising in addition to YouTube. And so we approach it as an industry-wide system-wide sort of problem and it’s an area in that we’ve investing in very heavily. Obviously, Google has a deep heritage here, given our early days in terms of sort of weeding out fraud on the AdWords side, click fraud et cetera, we want to extend those capabilities to things like impression and view fraud, which is a challenge in the display and video space. comScore had a recent study I think that said that about half the ads on the Internet are never actually seen by human being. With stuff like that nothing else matters. And so it’s been an area of aggressive investment for us to solve that problem not just for Google but for the entire working with partners across the entire industry.