Google's display ad business doubles since 2010 reaching US$5B/year, its double click ad exchange growth reaches 130% year-over-year driven by category targeting; analyst says company becoming less dependent on search advertising

Kendall Sinclair

THETFORD CENTER, Vermont , January 20, 2012 (Media Buyer Planner) – Google CEO Larry Page in a Thursday analyst call reported that its display ad business has doubled since 2010. Display ads include network and YouTube ads, which has reached a $5 billion per year business. The ramification according to AdAge is that Google is becoming less dependent on search advertising alone.

Google went on to report that its DoubleClick ad exchange had reached year-over-year (YOY) 130% growth, driven in part by its precise category targeting (e.g., hybrid car buyers and adventure travelers). Brand advertisers are flocking to YouTube’s TrueView format, which emulates the pay-per-click model of AdWords AdSense. Three of those brand advertisers are Ford, GM and L’Oreal.

Bloomberg BusinessWeek observes that Google’s expansion into new markets and onto mobile devices, where it charges less per click, contributed to an 8% drop in its average pay-per-click.

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