Spider's Latest

Google 'should focus on display, rich-media and video ads'

An internet advertising analyst has said that Google should focus its attention on display, rich-media and video ads.

In an article for Computing News analysing last week's profit announcement from the search engine, IDC's Caroline Dangson said that shareholders did not necessarily need to be concerned that Google's growth rate for paid clicks appeared to be declining.

She explained that "a declining growth rate for paid clicks does not necessarily impact revenue growth".

However, she did say that IDC was concerned about the search engine's continued "dependence on search ads".

Ms Dangson added: "Strategically, we see stronger growth in display, rich-media and video ads in the future.

"Google claimed that they are working to roll out more display ads on YouTube and social networking sites such as Orkut and MySpace.

"IDC is not seeing the progress expected of monetising the large ad inventory of social media sites like YouTube, Orkut, MySpace, Blogger and others on the Google network."

Despite these reservations, Ms Dangson added that Google's reported profit growth was good news for "the internet advertising sector at large", as they showed "the internet will be resilient even in a weakened economy". ADNFCR-1536-ID-18561655-ADNFCR