Google's new product which has been designed for brand marketers will use a system similar to their existing AdWords placement platform, which already delivers text and graphical ads along with search results and to select content matched sites in the Google Network. Currently there are no plans for the new video adverts to be placed alongside search results, but that may only be a matter of time.
With almost all of the revenue Google derives being obtained through text-based pay-per-click advertising while Yahoo! dominates the graphically based display advertising market through banner placement, the opening up of video based advertising revenue streams to entice tech savvy advertisers to direct their marketing budgets to Google, could prove to be a lucrative move.
Google believes that there is already a market for the video service for companies such as movie studios, who require a fully interactive experience in order to effectively deliver their messages.
The latest search market share results published by data analysis provider Hitwise, shows that Google managed to account for over 59 percent of all the Web searches conducted throughout the United States during May, a figure that is more than double the number of searches carried out by closest rival Yahoo!, and is about five times that of the next nearest competitor, MSN (Windows Live). With global search-advertising sales predicted to grow by about 40 percent this year to approximately $13.6 billion, the financial rewards to be obtained by being first and securing this market before Yahoo! or MSN, are obviously massive.
When questioned during a recent webcast, however, about the moves that Google has made into the arena of graphically displaying adverts Sheryl Sandberg, Google's vice president of global online sales, was suitably cautious about the proposed service saying, "I think it's fair to say we have basically just started." She went on to admit, "I don't think we know how we will do it," adding, "We don't believe we have to have the perfect answer before launch."
Google has committed itself to generating profits to support its search facilities through various types of advertising. Sheryl Sandberg commented, "Our long-run vision is that we will be working with advertisers...in lots of formats."
Google has been experimenting with a variety of other methods of advertising delivery such as last month's launch of "click to play" video advertising in the U.S., Canada and Japan with other markets planned to be added over the coming months. "Click to play" lets brand advertisers provide video adverts online, paying fees when visitors click to play the advert. Moves such as this have been welcomed by many companies wanting to promote their brand identity rather than specific products online.
"This suddenly gives Google a real product for brand marketers, something the company has wanted but hasn't really had until now," market intelligence analyst Greg Sterling commented on the recent developments, "Yahoo has had much more to offer brands. It will be interesting to see how many of them will try this out. Google indicated there are a number of advertisers already signed up."
Sheryl Sandberg also said that Google were already thinking of experimenting with other kinds of display ads, although no firm details have yet been announced as to what form they are to take.
