The Changing Face of Advertising

Interesting read from Business Week. Not only is the article interesting for what it means for Google and Yahoo, but also implies an continual erosion of financial support for traditional media:

Excerpt, with full link below:

Google's Display-Ad Sales Should Top $1 Billion

As analysts say rising demand for Internet display ads will begin paying off for Google in 2010, one asks: "Is this a $10 billion business?"

By Douglas MacMillan

Google CEO Eric Schmidt hinted in July that display advertising would probably be the next of his company's businesses to generate $1 billion in sales. Analysts say 2010 is the year he'll deliver on that prediction.

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Companies tend to use online display advertising to raise awareness of a brand or product while they deploy search ads to encourage customers to take a specific action—for instance, click on a Web site or make a purchase. Because search ads are often cheaper and their effectiveness easier to measure, budget-conscious advertisers flocked to them during the recession. Now, however, display is getting a boost as big advertisers that have traditionally focused branding efforts on TV and print are shifting more ad dollars to the Web. "There's a lot of money to be tapped that otherwise would be allocated to TV, that will be moved online," says technology analyst Greg Sterling. This year, online display advertising may grow 8.2% to $7.9 billion in the U.S., from $7.3 billion in 2009, eMarketer says. Search advertising is expected to rise 5.6% to $11.4 billion.

http://www.businessweek.com/technology/content/feb2010/tc2010027_356976.htm