Google remodeling Youtube
- Details
- Published: Monday, 16 September 2013 14:27
- Written by Nathan
Google recently re-organized its ad business into two groups - one focusing on brands, where it sees huge growth potential, and the other on performance ads, where it already dominates.
Google is stepping up an effort to win more advertising dollars from brands because the Internet giant sees this area as one of the next big drivers of its revenue growth.
The push focuses on the YouTube online video business, but also includes Google's display ad network and its social network Google Plus.
Google already dominates performance-related ads online through its leading search engine, limiting future growth there. Brand advertising is a big market that the company has yet to crack, giving it much more room to grow.
Digital brand advertising spending will grow from $18 billion this year to $31 billion by 2017, while spending on direct response, or performance, ads online will climb from $25 billion to $32 billion in the same period, according to eMarketer.
"The opportunity for brand advertisers and Google to work together is enormous," said Lucas Watson, vice president of brand solutions at Google. "We have massive growth in front of us."
