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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
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

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?