Google Moving Graphically into the Future: Beyond Text to Display Ads

05/07/2008

Search engine giant Google may start running display ads alongside Internet searches for photos. This move could move its business graphically into the future; getting further away from it’s bread-and-butter text-based ad revenue system.

The company is taking care to ensure that this move doesn’t alienate users who are used to things as they are.

Seeking new income streams, the fast-growing company is looking for ways to properly monetize image search. A look at Google’s numbers provides a clue as to why it is actively seeking new revenue streams. In 2007, company revenue increased by 56 percent, which was down almost 20 percent from 2006, which saw 73 percent growth.

According to an interview on Bloomberg Radio, Google VP Marissa Mayer says that no one has figured out how to properly do this yet. Mayer further speculated that the company may be leaving up to $200 million on the revenue table by not including text ads with image search results.

While preliminary testing showed that users don’t want text ads when searching for images, the company feels that display ads may be better received. This may well be because display ads are similar to images, hence feel more natural when displayed alongside images.

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