Google Displays Love for Branded Ads

Look out Yahoo, here comes big daddy. Google CEO Eric Schmidt told analysts this week that the company was investigating display as well as video ads, encroaching upon turf that the company had heretofore left alone.

It was inevitable that Google would enter the arena as the lucrative display biz is easy money for the search engine. It's amazing that they have held back from this low-hanging temptation for so long. But Schmidt said it may take a while for Google to develop the service that would likely coincide with the video ad system that the company has acknowledged it is building.

Google would be smart to differentiate itself by offering a program that leverages behavioral and target marketing. Look for them to be shopping for some ad-serving technology companies as they build this important application. Another lame launch like the video search product would not be received well by advertisers who are used to working with other reliable options.

So it's a banner day for display ad companies, who will soon have tons more inventory to deliver.