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Analysts: Google Display Ads Going Big

Display ads are likely to contribute a little more than $1 billion, or about 4% of Google's total sales this year -- an increase of as much 40% over last year -- analysts, including Doug Anmuth at Barclays Capital, tell BusinessWeek. Last July, Google CEO Eric Schmidt hinted that display advertising would likely be the next of his company's businesses to generate $1 billion in sales.

Meanwhile, eMarketer suggests that demand for display ads, which include videos and banners, may rise faster this year than for search-related ads. Google still makes most of its sales from ads placed alongside search results. In the field of display ads, Google still trails Yahoo, which had revenue of $6.5 billion in 2009, which was generated largely from display ads.

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