Google to media companies: We're your friend

Google wants media companies to see it as a friend, not a foe

Tim Armstrong, Google's president of advertising and commerce for North America, said YouTube will play an important part in what Google expects to be a significant increase in display advertising revenue for the company. So far, most of Google's revenue has come from a single ad format: the pay-per-click text ads delivered along with its search results and in third-party sites in its ad network.

Google would be "disappointed" if this year and in 2009 it doesn't attain a significant presence in the display ad market, Armstrong said. Financial analysts have noted for years that, while Google's revenue and profit growth has been astounding, it has been based almost exclusively on pay-per-click text ads.

For example, in November, Yahoo ranked first in the US in display ad impressions with a 19 percent share, followed by News Corp.'s Fox Interactive (16.3 percent), while Microsoft came in third with 6.7 percent, according to comScore. Google took seventh place with 1 percent.

Google has been trying to diversify its ad revenue stream in recent years, making moves not only in online display and video advertising but also in non-Internet ad markets, such as radio, TV, print and even billboards. However, those efforts haven't yet yielded any significant results.

Recent evidence of how jittery investors feel about Google's dependence on pay-per-click ads came about two weeks ago when the stock took a beating after comScore reported that Google's paid clicks had suffered a 7 percent sequential decline in January, compared with December.

On Monday, Armstrong tried to put a positive spin on that statistic, saying the decrease in paid clicks had been due, in large part, to Google's initiative to improve the quality of those ads' delivery, meaning that with more precise ad targeting, users had to click on fewer ads.

Still, Google's stock has continued to slide, dropping almost $100 since that comScore report, to close on Monday at US$413.62.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Juan Carlos Perez

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?