Google is continuing to execute its plans to make a bigger play for the display ad space - and is promising it will avoid the annoying images that have come to be associated with them.
Increasingly display ad have come under fire from both consumer groups and the industry itself. The Consumerist's pet peeves include video ads that auto-play when you navigate to a page, "alerting everyone within earshot that you're not doing your job", the super-headers that initially bump down all the content on the homepage so that you can't tell what site you're on, new rollover ads that require one to be surgeon-like with the mouse and ads that "just float above the page with the tantalizing "X" that is supposed to close the ad when clicked, but never seems to work."
It doesn’t have to be this way, says Google spokesperson Rob Shilkin . Display ad doesn’t necessary mean gaudy, dancing images, Shilkin explained to VentureBeat. "A display ad can also be text," he said. Google also doesn’t plan to change its current approach to ads, which are displayed to the side of the screen, he added.
Google announced plans to push even deeper into this space at the beginning of the month when VP Neal Mohan outlined at a press briefing plans to incorporate YouTube and its other owned and operated properties such as Gmail and Google Finance into its display initiative. "Display is truly at a tipping point," Mohan said. (via Ad Age). "We think it can be substantially larger than the $20 billion it is today, whether [it's] $40 billion, $60 billion, or $80 billion, but there are a lot of challenges that remain."
But how will it do this without adopting some of the more grandiose design techniques of display ads? Squeezing out the inefficiencies in the display market will be one route, Mohan has said, according to eConsultancy. "Google made its name (and billions) by streamlining the search advertising process and increasing revenues. And that's exactly what they want to do with display advertising now."
Google took a step forward to making the buy and sale process more effective when it bundled all the display advertising inventory it manages - from YouTube to Google Finance to third-party Google AdSense publishers - into the Google Display Network last month. According to Google, eConsultancy noted, 28% of a media dollar gets eaten up by friction (administrative costs) in the display ad market.
Mohan also points out that the old school method purchasing TV advertising only wastes 2% of a dollar, it said. Also, as video and mobile products become more advanced, the advertising opportunities are expanding.