In this post about Proctor and Gamble not getting their typical discounts that a big marketer usually sees in the agency and media circles it proves to be an interesting paradox.  If Google discounts their PPC then they go down the slippery slope of negoitating with every other "volume client."

Google is certainly a premium brand in the search space.  If we look at some other premium brands that do not discount we see companies like Red Bull, Tempurpedic, Starbucks, Maui Jim, Rolls Royce etc.  Google sells to small businesses (some consumers) as well as large businesses like P&G, so their client base is diverse.

For now, Google is in the drivers seat.  But when economic conditions turn, look for P&G to be in the drivers seat and Google will be all to glad to make favorable financial arrangements.  In the meantime there are plenty of other options out there that P&G can explore.  In my expereince this is where real innovation occurs, someone will come up with a solution to acquire some of the P&G pie….maybe Yahoo or Microsoft or maybe even a start up or two.