Sunday, June 14, 2009

Google's Grab for the Display Ad Market


Google's Grab for the Display Ad Market

The search king aims to unseat Yahoo and Microsoft with new, ultratargeted banner ads. Will Web publishers and online ad agencies bite?

I came across this article yesterday. It is about Google's redoubling efforts to grab a bigger piece of the largest online ad market it doesn't control: display ads, the pictorial banners and videos that account for more than a third of the $40 billion online ad market. Google faces a tough challenge. Yahoo! and Microsoft's MSN have a huge lead in display ads, largely because they can put ads on their own pages of content, like Yahoo Finance and MSN Money. Google hopes to place more display ads on its YouTube site as well as on thousands of partner sites.

The fastest-growing kind of display ads, called performance ads, work more like search. They allow advertisers to use data analysis and user-tracking technologies to match ads more closely to likely buyers and measure mouse clicks and other actions so advertisers pay only when ads deliver.

And some think anything but search gets short shrift inside Google. "Display is still the redheaded stepchild of their ad initiatives," says Rob Leathern, CEO at CPM Advisors, which helps advertisers improve their online campaigns.

Insiders say that's partly why Google has seen a stream of departures of ad executives in the past two months who see more opportunities elsewhere. Most recently, David Rosenblatt, president of Google's display-ad efforts and former DoubleClick CEO, left in May. But Brin insists Google is serious. "Display is going to be a large business for us," he says. "It's not just an experiment."

http://www.businessweek.com/magazine/content/09_25/b4136052151611.htm

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