Display ads 'to give search a run for its money'

4th February 2008

Display ads are set to compete with search marketing for dominance in the internet advertising industry, it has been claimed.

The New York Times reported that Microsoft's $44.6 billion (£22.4 billion) bid for Yahoo! alongside Google's recent $3.1 billion takeover of display ad specialist DoubleClick have paved the way for display ad dominance.

"Right now it's primarily about search, but pretty soon it will be about display," said Ed Montes, executive vice-president and managing director of Media Contacts. "You need scale in that model."

According to the newspaper, Google is seeking to extend its internet advertising dominance by looking beyond search but that if the Microsoft-Yahoo! deal does go ahead, it would have a significant lead in areas such as web banners and video spots.

It would control around 30 per cent of the global display market, it added, comparing this to Google's two per cent.

An eMarketer report forecasts that by 2011, $8,190 million will be spent on display advertising, compared to $4,687 last year.