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Google To Run Display Ads With Image Search Results

Google may soon place display ads alongside search results, according to Bloomberg News. Google VP Marissa Mayer told Bloomberg Radio that matching graphical display ads with image searches, for example, "represents a large opportunity" with "a lot of potential for advertising revenue." However, she said the company had to be careful not to drive users away with such ads. Google wouldn't place display ads next to text search results, for example.

The search giant is clearly after new sources of revenue now that sales of its four-line text ads, which generate almost all of the company's earnings, are slowing. Google's revenue growth was 56% in 2007, but it slowed to 30% in the first quarter of 2008.

''We haven't found a proper way to monetize image search to date,'' Mayer told Bloomberg, adding that in 2006, Google found it was giving up as much as $200 million per year by not showing text ads next to image search results. ''You may see us roll out an ads-image search in the future, but when we do you'll know that's because we found a way that ultimately enhances user happiness with the product.'' As yet, Google has not tested the tactic on users.

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