Google is a name that seems to roll off the tongue of technology savvy computer users, as if it had been existent for thousands of years.
Most of us know Google as the mainstream line for our own personal research engine. As stated in the New York Times article, Google has made its most of its fortune from small text ads that appear alongside results from our requested searches. Most of us are very familiar with Google's style of display. Personally, ever since I've been typing on a computer, I have been quite satisfied with the results displayed after I request a certain search. Despite my satisfaction with the "old-fashion" ad display that Google has been using for quite sometime, this Friday they will embark on a new technology-savvy endeavor.
This Friday Google is diving head first into the world of graphical display ads, after purchasing the ad company DoubleClick last year for $3.1 billion. This type of advertising has long been driven by Yahoo. Another company that is quite familiar to us in the world of cyber space.
After reading the article of the "display advertising", I felt quite out-of-date and a little behind on the times.
So, for any of you taking the time to read this, let me simplify what the term "display advertising" really means. Display advertising is simply any button display, tower ads or visual banners that can include a range of: a variety of images, video, sound text, and interactivity.
Google’s chief executive, Eric E. Schmidt, has said repeatedly that display advertising offers one of the company’s best prospects for expansion, now that growth in its text ad business has slowed significantly. The new advertising exchange is a cornerstone of Google’s display strategy, and one of the main reasons Google bought the ad company DoubleClick last year for $3.1 billion.
Although Google seems to be on top most of the time, this is one of the few times that some will look at Google as the "little guy" or "underdog". When it comes to the advertising world Yahoo seems to be at the top of the totem pole. Yahoo sells ads on some of the Web's tops sites such as, eBay.
So the question is will this strategic decision by Google, in fact, be a brilliant idea ... or could it be a costly business move?
Some think that because of the DoubleClick software that Google purchased in 2008 will automatically allow those hundreds of thousands of publishers and advertisers who currently run from Google's AdWrods and AdSense systems to run their ads and ad space, that it could cause a revolution with the web market of advertising.
Yahoo feels differently,
Yahoo said it welcomed the competition. “We are very confident in our capabilities,” said Frank Weishaupt, the company’s vice president for North American marketplaces. “We will continue to innovate and do our best to control our own destiny.”
Regardless of the competition, it is a fact that Google will now be able to allow advertisers to easily advertise and reach every single person (100%) of the Internet audience, at a very high frequency. And according to William Morrison, an analyst with ThinkEquity, partners, "That is very difficult to do on the Internet right now..."
The word Google resounds more often in my head than the word Yahoo, when someone mentions the Internet. Maybe thats just me, but I feel like any move Google makes, they make with confidence and reason. I trust that this move will be a successful one for Google and maybe make the success of Yahoo turn a small bit downward.
Bree; Awesome post. While the world of analog advertising (bill boards, news ads, etc) is all too familiar to us all, the digital revolution of ads is an omni-changing trend in the world of cyberspace. It's really interesting to see how far Google can go with this, because, as you note, they've already made so much money using just text... which is really incredible.
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