Google Expects Display Advertising Revenues To Surpass $1 Billion In 2010

It’s only around six months back when Google’s chief executive Eric Schmidt dropped a hint that the company’s display advertising business would be its another business to cross $ 1 billion mark.

Now Analysts have forecasted that this could happen as soon as in the year 2010, according to BusinessWeek.

A group of analysts, including Barclays Capital’s Doug Anmuth, has predicted that display advertising is set to make a small but rising contribution of 4 percent in the search engine giant’s total revenues for this year.

This would mark a massive revenue growth of more than 40 percent in the company’s display advertising business as compared to the last year.

Banner ads and marketing videos on Google-owned YouTube would contribute a maximum of around $700 million, to the company’s revenue inflow from display advertising this year, the analysts added.

If it materialises, this would be a great achievement for Google, which has a hefty stream of revenues from the adverts placed alongside search results and has often been condemned for failing to reproduce similar kind of success with other businesses.

Analyst firm eMarketer has already forecasted a sharper rise in the display advertising, which encompasses enticing banner ads and marketing videos, than in the search-related advertising arena.

Our Comments

Google is noticeably trailing behind Yahoo in the display-advertising field, as the latter already has generated a significant portion of its $6.4 billion revenues from display ads last year. Don't discount the likes of Facebook and Bing though, both entities are likely to enjoy a strong 2010.

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