Internet Display advertising will explode…

By: ispeculatornew
Date posted: 09.21.2009 (5:00 am) | Write a Comment  (1 Comment)

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online-advertisingI am fairly confident that Google’s latest move could be a big one. Google announced today that it would be opening up an “ad exchange”, a digital market place for display advertising. This is a major move because up to now, advertising on the internet has been mainly of three kinds: search ads, text ads and lead ads:

-Search ads: the most obvious one and one that all internet ussers have used in a way or another. When searching on Google or other search engines, you will see two types of results; paid and unpaid. While the unpaid ones would generally be those considered the best match for your search, paid ads are ads that individuals or companies pay to have displayed next to a search result
-Text ads: There exist many types of ads but generally, advertisers use a third party to display text ads on websites. Those ads are paid either by click or every time they are displayed. These have been used in countless ways with users often not knowing that they clicked on an ad.
-Lead ads: These can be either images or text ads but are a specific category of ads where the advertiser will be paying for specific actions. For example, Amazon has such a program where they will pay website owners a percentage of any sale tat is made by a customer referred by that website. There are many ways to go about this but it is obviously a very important area on the internet.
-Another type of advertising that should have caught up more quickly but has not is display ads. These ads are more of the type of ads you would see on tv where advertisers are not necessarily trying to get an immediate action. A good example would be an for food, a restaurant like McDonald’s. Right now, it would be a bit difficult or tricky for a company like McDonald’s to advertise on the internet as what they really want is to show their logo. But without an efficient marketplace, it becomes very expensive to do so because a company like McDonald’s was stuck with going directly to specific websites such as Yahoo or CNN. By doing so, they would be paying a very high price.
But in my opinion, Google will do to display advertising what it did to search and text advertising; make it efficient. Basically, by allowing thousands of publishers and advertisers to get started easily with a very small budget, it makes it possible for smaller companies to enter the area thus making the entire pricing a lot more competitive and transparent.
It might not have been possible for a 1 man company to pony up 50,000$ to advertise on Yahoo, but with the Google Ad Marketplace, I believe that it will become a lot easier to start small with 100$ for example. Then, if the company can actually make a profit with that investment, it will increase its investments over time.
So yes, I do believe that this launch is a big thing and finally a good use of the doubleclick technology it purchased over a year ago when it purcahsed the company. I would imagine that within 12-24 months, this will help Google become an even more important central for advertising….
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1 Comment

  1. Comment by free banner exchange — October 30, 2009 @ 8:37 am

    good read, solid stuff, thanks for sharing this.

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