Thursday, May 12, 2011

Google's another billion dollar business - Display Ads

Google the $30 billion company till date thinks its next billion dollar business is going to be display advertising which includes banner ads, video ads and in-app mobile ads.

Just in three years of display advertising business, Google has stunned everyone with record $2.5 billion annual sales. Day by day it is becoming a very important business for Google turning out to be a revolutionary sector, the growth engine of future. Google runs its display ad with a different business automatizing the process while others (YAHOO, Microsoft and AOL) uses manual process. Anyone can use display ads online using credit card payment.

For the time, Google's share in display ads is just 15% which is very less compare to its search advertising which is 60% of total market. Even this 15% is enough to beat Yahoo which previously held the top position for a long time.

Google already considers it as a big business but admits the fact that there is still tremendous room to grow in this sector to make it very large business is coming future. Google targets to grow its display business by 40% by the end of this year. In just one year 2009 to 2010, Google's 1,000 largest advertisers increased their display purchases by 75%. Forecasts says that by 2014, Google will grab 91% internet traffic which is 40% now.

Display ad business emphasizes on imaginative and interactive skills and requires high level creativity which makes it harder to make and even harder to monetize. But Google solves all its hurdles with its tools and technologies for example its recent purchase of Teracent allows companies to launch a single ad campaign with dozens of variables that can be altered based on conditions like location, weather, and a user's tastes. This is the reason why Google is able to maintain its momentum while others are struggling in the same line.

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