Financial and Business|

Google Expects The Online Advertising Market to Continue to Grow

Google LogoAccording to reports, Google has no doubt that online advertising is here to stay. Not only is it here to stay, but it is going to continue to grow. The vice president of display advertising at Google, Neal Mohan, says that display advertising is actually influencing the way people search.

Mohan went on to say that the digital display sector is currently a $24 billion market. However, he feels that it has so much more room to grow. In fact, he thinks that this sector can easily reach $200 billion a year. Now he understands that this is a long way to go, but he said that the opportunity is clearly there.

Of course, other companies are not prepared to give Google all the glory. In fact, some marketing groups, like WPP, are currently watching the digital display industry very closely. To WPP, online advertising has been the best way to offset ever declining sales of offline advertising. However, since WPP is attempting to really make a name with online advertising, it sees Google as a friend and an enemy. The chief executive of WPP, Sir Martin Sorrell, said that Google is a “frenemy” to his company. He said that Google is a threat, but it also helps represent a lot of opportunity as well.

However, others were not as nice to Google as Martin was. In fact, former ITV chief executive Michael Grade had nothing nice to say about Google at all. In fact, he went on to say that Google is nothing more than a parasite. However, Mr Mohan came to Google’s aid and defended the company against this strong criticism. He said that Google is in the technology sector, not the media business sector. He said that Google, in no way, owns inventory; they are not a media company. Mohan said that Google can not execute unless advertisers buy into the system and adopt it.

Mohan did not stop there. He said that Google, by helping to grow the digital display market, can help give media companies a “leg up.” Overall, the whole company does feel like there is a tremendous opportunity here. This is not just an opportunity for Google, but for the whole media industry.

Of course, it is hard for some companies to want to get on board with Google – mostly because Google has already grown so big. Google is one of those companies that has its hands in a ton of different markets, and it is doing it successfully. A lot of other companies find this kind of thing intimidating.

The real question for Google is: Where does it go from here? With the success of Android, the company has successfully made it’s way into the operating system industry. Does Google plan on expanding this? Will people someday see Google operating systems on home computers? Only time will tell.



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