Google Prepares Video Ads For Search Results

Saturday, February 16, 2008 by Mistlee

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WebProNews - Google Prepares Video Ads For Search Results
February 16, 2008

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Google Prepares Video Ads For Search Results
David A. Utter | Staff Writer

Revenue knocks at Google's once-pristine door

Visual ads, long absent from Google's search results, opened on
the site in the form of expandable video ads today.

Google took another step away from its history as a minimalist
provider of relevant search results. Along with the One Box ads
atop search results, and the right sidebar of ads, Google will
place another monetization component on those pages.

etails of the move appeared on the Bits Blog. Google VP Marissa
Mayer described why after all of their success with text ads that
they needed to take this step:

"The big insight of Google wasn't text ads; it was that the ads
should be conducive to the format," Ms. Mayer said. "We were doing
text-based search that was all textual. Visual ads don't work in
that format."

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By contrast, she said text ads are not as effective on pages
with search results that include images and video. The eyes of
users automatically gravitate to the images more than the text,
she said. Now that Google's main search results pages include more
images, video links and other elements, it is more appropriate,
she argued, to have corresponding advertising formats.

"It's the end of what was once considered one of Google's major
strengths, and opens the doors for up-and-comers to go back to
Google' s original spartan approach to search," Mashable editor
Adam Ostrow commented.

Google is in a position where they may feel a pressing need for
better ad performance. Between a small slip in their Q4 2007
financials, and Microsoft ready to raise the Jolly Roger and
pillage Yahoo, there's probably no small amount of The Fear
wafting through the Googleplex these days.

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Yahoo Buy Spins Wheels For Microsoft Mobile
David A. Utter | Staff Writer

Mobiles may matter more than the desktop

Since the PC browser search and ad experience have been dominated
by Google, Microsoft's competitive play may be on the mobile side,
where no single provider dominates search.

Picking off Yahoo during a low point in its market performance
would give Microsoft a significant boost to its online fortunes.
Microsoft's share of the search market triples if the takeover
succeeds, and paid search ad revenue should increase.

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The cynical viewpoints we have witnessed online about competitors
in other industries teaming up to take down a market leader, and
failing in spectacular fashion, suggests Microsoft may opt for a
softer target to establish itself as the go-to destination.

Millions of mobile phones nestle in the pockets and pocketbooks
of people around the globe. Microsoft already occupies the
desktops of millions of people, even if those folks promptly
head to Google after booting Windows.

Billions of dollars in ad revenue online look like the obvious
motivation for trying to tear market share away from Google.
Every percentage point a combined Yahoo/Microsoft could gain at
Google's expense delivers profits.

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Google stubbornly refuses to go along with any portents of doom,
even if a little bit of The Fear showed up with their choice to
place video ads in search results. People go to Google because
they do; inertia among Internet users is remarkably difficult
to change.

Star Trek fans, like fellow writer Doug Caverly, will recall
Captain Kirk's disdainful opinion of no-win scenarios. Microsoft
faces that choice. Keep tilting at Google's impossible windmill,
or look for greener fields elsewhere.

Reuters made the salient point about Yahoo bringing a lot to
Microsoft on the mobile side. Microsoft competes with Nokia on
the mobile operating system side, but it makes more sense for
Microsoft to work on a compelling mobile search and service
experience that any mobile users, on Symbian or Windows Mobile
or even Google Android, will seek out and use.

Mobile phone growth globally, especially in the expanding middle
classes in Asia, gives Microsoft an opportunity that it doesn't
have against Google on the desktop. Getting the Yahoo deal
finished soon will put Microsoft on the way to making a play
for that market.

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