Google Aims to Wrest Display Ads From Yahoo
Posted in: Internet Use/New Technologies at 19/09/2009 08:36
Google is pushing for a second act.
The company has built its fortune almost entirely on the back of small text ads, which appear alongside its search results and on sites across the Web. Now it is stepping up efforts to make inroads into graphical display ads, a business long dominated by Yahoo.
On Friday, the company plans to introduce a long-awaited new version of an ad exchange, like a stock market, where advertisers and publishers can buy and sell advertising space, filling spots in Web pages on the fly.
Google Unveils Market for Display Ads
Google Inc. Friday announced a highly anticipated service that will make it a middleman for selling graphical ads over the Internet.
The technology, called the DoubleClick Ad Exchange, resembles a stock exchange for display ads, ads with images and text that appear alongside content on a Web page. It allows companies that buy ads to bid for ad space across lots of different Web sites, from blogs to major entertainment properties, in real-time based on what publishers want to sell that second. Today display ads are often purchased ahead of time through negotiations with individual Web sites or networks of sites, a process which leaves publishers with lots of unsold space.
Google launches exchange for display ads
It has already made untold profits from web search advertising, making scores of millionaires and turning its founders into some of the richest people in the world. But today web giant Google took another step towards global domination by announcing a major push into online display advertising.
In an announcement on its blog, the Silicon Valley company said it was launching an auction system that allows advertisers and publishers to trade space for display advertising across hundreds of thousands of sites all over the web.
Google cracks the secret of net display advertising
The scariest question a venture capitalist can ask a company seeking funding is: what if Google enters your market? For years, this question has haunted folk in mainstream advertising. They had already seen Google collar an overwhelming share of the targeted-advertising market via its AdSense and AdWords technology, the system through which small, hopefully relevant, text ads appear alongside the results of internet searches.
On the back of this, Google become a money-printing machine and now has nearly 70% of the paid-search market. This is nice for it in the short term, of course, but raises a strategic issue. What would the company do when the paid-search market was saturated? Where would the next growth area be?