Display in 2011: The Future Belongs to Google

http://www.clickz.com/clickz/news/1934048/display-2011-future-belongs-google

After three years of intense R&D -- and even more intense M&A -- the company now owns large swaths of display media's plumbing. It's on pace to capture $2.5 billion in display ad revenue in 2010, making short work of CEO Eric Schmidt's 2009 pledge to turn display into Google's "next billion-dollar business." But that's just the tip of the iceberg.

Agency groups ZenithOptimedia and GroupM both predict online ad spending will grow significantly next year, and researcher eMarketer projects display spending will expand from $8.9 billion this year to $15.9 billion in 2014 (though it will still trail search spending). As that tide surges, it's evident to many that Google has rigged its boat to rise more swiftly than its rivals.

Google's product stack includes ad management leader DoubleClick; a year-old ad exchange that is already dominant in real-time bidding; demand-side platform Invite Media; creative optimization platform Teracent; and incubated products like Display Ad Builder, which lets small search advertisers roll out display media campaigns in minutes. Its ad network now exceeds the reach of previous ad network leaders AOL and Yahoo, according to comScore.

One likely area of investment is data aggregation, a potentially large revenue source but also a sensitive category in light of Federal regulators' current interest in online ad targeting. Another is ad verification, which helps advertisers guarantee their campaigns meet campaign specifications and honor website block lists.