It is common knowledge that Googe’s AdWords service clearly dominates that “Search Advertising” sector. Still, what most people don’t know is that Google is by far not the leading company when it comes to “Display Advertising” (videos, images and interactive ads).
Google announced that it will launch its own service (DoubleClick Advertising Exchange) for display ads on the 21st of September. In doing so, Google will try to challenge the current No.1 on the display ad market; Yahoo!’s Right Media. While Right Media is handing about 20% of the display ad market, Google in March 2009 had – according to eweek.com – a market share of just 1,3%(!). The Interactive Advertising Bureau estimates that the U.S. text ad market is about 10.5 bn USD a year, while the display ad market amounts up to 7.6 bn USD a year.
Following the explanations provided by Google, DoubleClick Advertising Exchange should become something like an advertising hub, controlling and distributing all advertisement services of Google in a centralised manner.
When a person requests a Web page from a site that is participating in the exchange, the publisher notifies the exchange that space on that page is available. It might also let the exchange know something about that person, based on his or her past online activity or shopping habits. Advertisers bid on the ad space, offering different amounts depending on the person’s attributes, the time of day and other factors. The winner’s ad is then slotted into the page. All of this happens nearly instantly.
What is indeed interesting to notice is the language with which Google approaches the topic. Having all the “antitrust-thunder” still in my mind that broke lose after Google bought Double Click in March 2008 for about 3,1 bn USD, I was slightly amused at how Google is explaining its move. It does so, among other well sounding arguments, by citing its (altruistic) desire to:
3. Open up the ecosystem: We want to democratize access to display advertising and make it accessible and open, like search advertising.
Isn’t that touching? THE monopolist on the search advertising sector is pleading to democratise access to a field of business in which it’s not the market leader…. yet… 🙂
Anyway… to sum the whole topic up, Google is working on catching up on Yahoo in the 7.6 bn USD market for display advertisement, thus closing another gap in its product portfolio.