Google Set to Make $2.5 Billion in Display Ads


Google has always had just one business model, online search advertising. It first started with online, but now it has expanded its channels to include display, mobile, video, TV and even radio.

Its performance in terms of revenue has been excellent so far with Google selling $2.5 billions in display ads per annum, based on its third quarter performance. Out of the $2.5 billion, $1 billion is attributed to global mobile advertising. Youtube is selling ads on 2 billion video views a week.

“We’re seeing great momentum on new businesses,” Senior VP Jonathan Rosenberg said on the earnings call. “We’re firing on all cylinders in display.”

Google issued the numbers after a quarter in which its primary business of search advertising  is booming. Google posted revenue of $5.48 billion, a 25% gain over the same period last year, with profit of $2.17 billion at a 32% increase. The company’s stock has fallen close to 14% year-to-date, but surged more than 8% to $589 a share in after-hours trading.

“Search is still the heart of the web,” Mr. Rosenberg said. “As the internet continues to explode, there are more websites, more video, more people coming online. The first thing they usually do is search.”

With Andriod also on the plate, Google could post a lot more earning by the year end. Lets wait and watch.