Google made the business of selling ads against search results a runaway success--gaining an expected 32% of total Internet advertising in 2007.
Not only can advertisers target just the right customers based on search terms they type in, but those advertisers also can track exactly how many people click on the ad and whether they bought something as a result.
Demand for better returns on ad spending is helping to drive a new spate of Internet mergers and acquisitions. They are all aimed at amassing better online data to help define consumer interests and intentions, enabling websites to serve up more relevant ads.
And as big-brand advertisers move online in greater force, they're demanding the ability to apply the same kind of targeting and measurability they get from paid search to all the other ads they run. While targeted ads online may cost about twice as much as untargeted ads, they can produce twice the return on investment.
Source: BusinessWeek, May 21, 2007