"If you read through all the announcements... it becomes clear that... Google is building... an operating system for advertising… one that will work across all media... [using] technology in a manner that devalues... traditional industries by extracting inefficiencies in existing processes."
It's not clear, it's a lot of conjecture. But let's suppose this is true.
The 'OS' would not really be that much of a bigger step than buying media through a network. It's an extension of Google Adwords for other media - and as an agency that buys through Google Adwords, that's something we use rather than compete with.
And remember, this all assumes that media companies are all going to happy to work with Google in this way - the smaller one maybe will, but Google has hardly had success with book publishers on Google Print.
It would be nice if their system could prioritise media based on performance (just as CMS tries to - and that's with online, the most measurable of media), but call me naively sceptical if I say you can't replace human planning with an algorithm.
At the 'worst', this could force online planners to move beyond standard format advertising, looking to microsites, advertorials and stuff like this Second Life that we hear so much about. And if it does, I think that will be a good thing.