Display Ad Rev. DoublesJan 20th, 2012 | By Anet Dunne | Category: Advertising
Google CEO Larry Page reported a 25% increase in fourth-quarter revenue, citing a strong holiday season. Display ad revenues have doubled in the last two years.
Display ad revenue is not as profitable for Google as its search engine business because it has to share it with partner publishers in the Google Display Network. The big success for Google is that the world’s biggest search engine became less dependent on search advertising, the text ads that appear on the search results page. Display revenue, including network ads and YouTube, has become a $5 billion annualized business, said Larry Page. That means it’s doubled in size since October 2010, when Google said display had become a $2.5 billion business.
“I’m most excited by the fact that we improved our velocity and execution,” said Mr. Page, noting that revenue for the quarter had passed $10 billion for the first time.
Google Mobile Advertising Expected to Explode
Mr. Page also said that 700,000 Android phones are now being activated every day, with 250 million now in use.
Bryan Wiener, CEO of digital marketing firm 360i, said he had expected a strong showing from Google in mobile — where its share of search is dominant — after Black Friday and Cyber Monday, when searches on mobile exploded.
“What’s lifting them seems to be a tipping point in consumer behavior,” he said, also noting that he had expected Google’s display business to benefit from YouTube’s redesign and the momentum it generated for brand display advertising.
Google+ May Drive Mobile Search
Mr. Page also reported that Google+ now has 90 million users, up from the 40 million reported last fall. He said that 60% of users engaged on the network on a daily basis, while 80% do on a weekly basis.