Google will overtake Yahoo to become king of display advertising in 2012

2011 has been a busy year for the Search industry with Google acquiring Invite Media and Teracent. As we head into 2012, Google is about to officially launch its DoubleClick Search V3 platform - DS3 - a bid management programme which will combine Yahoo and MSN into an AdWords type interface, and significantly invest in the Double Click platform, specifically Double Click for Advertisers (DFA) and the Exchange. As advertisers will we really need to invest elsewhere when Google could potentially provide it all?

One of my predictions in 2008 was that Google would, by 2009, have expanded into display advertising following its acquisition of Double Click. In 2009, three of my five predictions for 2010 hinted at a new wave of display, pegged 'performance display'. Two years later the Double Click acquisition and some incredible developments such as Remarketing and Placement Targeting have turned a once struggling Content Network (AdSense to the Publishers), into a success story - one we now know as the Google Display Network (GDN). 

Google's noteworthy acquisitions and investments this year combined with the mighty AdWords suggests that by the end of 2012, not only will 90% of advertisers Search budgets be in AdWords but also that this trend is set to be the case for Display as well.

Where does this leave other networks such as Yahoo, if Google could potentially provide it all?

The last ten years is evidence that when Google sets its sights on expanding and changing the digital space, it does it properly. However, if Google is creating a one-stop-shop for all digital advertising, where does this leave the other networks? And as advertisers do we really need to invest elsewhere when Google could potentially provide it all?

Interestingly, in the last twelve months, Yahoo has finally woken up to the integration of Search and Display. It now strategically places its two teams together, making it easier for advertisers to get into the Right Media Exchange (RMX) and the Direct Response (DR) networks. Also with the Search Alliance finally hitting the UK in 2012, this should improve Yahoo and Bing's combined search efforts. However optimistic this may sound, it is obvious there is a long way to go before Google starts to see a dent in its market share.

Assuming Google and Yahoo pull this off; I believe this will support another big subject being debated by online marketers across the UK - attribution - one of the biggest buzz words for 2011 and definitely a hot topic for 2012. If all of my advertising budget can be spent in one place (this one-stop shop scenario) then surely it makes my attribution modelling easier and more transparent.

What is clear is that the developments Google has made in 2011 and the past few years should see it become a serious authority - if not the leader in Display, overtaking Yahoo, as well as Search by the end of 2012.

For more, read our Predictions magazine with contributions from Microsoft, Yahoo and Google and watch our Predictions video.

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