If Google gets its way, 2010 is to be the year of display ads.
According to Business Week, Eric Schmidt’s prediction about display advertising back in July last year could well come true.
The Google CEO hinted that display advertising could be the next of Google’s businesses to generate $1 billion in sales. Now analysts believe that this wish is likely to come true.
Analysts including Doug Anumth from Barclays Capital predict that “display ads are likely to contribute a little more than $1 billion, or about 4% of Google’s total sales this year—an increase of as much 40% over last year.”
While some analysts believe that demand for display ads, including marketing messages in videos and banner ads, may rise faster than for search-related ads.“You have to go somewhere else to get the next legs of growth,” says Jim Friedland, an analyst at Cowen & Co.
Google’s plan for display in 2010
Business Week spoke to Neal Mohan, Google’s display business executive, recently and the plan is simple… “Our goal is to bring the science of search to the art of display,” Mohan says.
About $700 million in sales should come from YouTube while the remaining will come out of the DoubleClick operations that are gaining momentum. Google will also be banking on the success of the recently acquired Teracent technology. The advertising technology can create customized display ads based on thousands of different creative elements. It can tweak images, products, messages and colors to optimize ads based on the viewer’s location, their primary language, the local time, and past ad performance.
Below is a comparison of the Teracent created ad (on the right) compared to a normal display ad (image on left)
While, there has been plenty of hype about real-time search being the winner for the search engines in 2010, Google appears to not be putting all its eggs in one basket. I wonder what Yahoo! & Bing have planned for display advertising? I guess we will have to wait and see if they announce anything in the coming days.