Google Takes Aim at Yahoo: Offers New Display Ad Exchange

September 18, 2009

(ChattahBox)—Google is finally entering the lucrative graphical display advertising market with its long awaited launch of an advertising exchange, offering advertisers and publishers a simple method to buy and sell advertising space. The new advertising exchange is viewed by Google, as key for the future expansion of its advertising revenue.

Yahoo has long dominated the display advertising business, with its thriving ad exchange that sells ads on all of the Web’s major sites, such as eBay and scores of newspapers. And Yahoo’s dominance has only increased, since 2007, when it bought Right Media, an innovative ad exchange company.

But Google is planning to grab a piece of the lucrative, display ad exchange market, with an acquisition of its own, by its purchase of the ad company DoubleClick last year for $3.1 billion. Google has spent the last year integrating DoubleClick’s technology into its own advertising model.

DoubleClick has operated an ad exchange for a long time and its experience should provide an easier transition for Google, as it enters the advertising exchange business in a big way. The new exchange would offer Google’s current AdWords and AdSense customers easy entry into display ads throughout the Web.

There is significant room for expansion in the ad exchange market, which currently only accounts for between 10 and 15 percent of the Web display advertising business. Yahoo is confident however, it can hold on to its dominance in the market with continued innovation.

Frank Weishaupt, Yahoo’s vice president for North American marketplaces says, Yahoo said, “We are very confident in our capabilities.” “We will continue to innovate and do our best to control our own destiny,” added Wieshaupt.

Source: New York Times


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