After years of riding on the back of its search business, Google is finally touting display advertising as a significant revenue generator.
During an exceptional Q3 earnings report issued on Thursday (Oct. 14), Google execs called out the performance of display advertising, as well as mobile. According to CEO Eric Schmidt, both segments are showing “significant momentum.”
Typically, Google’s earnings story begins and ends with revenue from paid search—far and away its core service. While providing limited details, officials indicated that display, YouTube and its ad exchange are positively impacting the company’s revenue. In fact, nontext advertising, which includes exchange, YouTube and Google’s own display network, is on its way to becoming a $2.5 billon business, said officials.
“I think this puts us as one of the top three display ad networks in the world,” said Nikesh Arora, Google’s president, global sales operations and business development.
Similarly, mobile revenue is trending towards becoming a billion-dollar business annually, according to Google execs. “As we go forward, you are going to see more monetization of video,” added Arora.
Overall, Google hauled in $7.29 billion during Q3 2010, a surge of 23 percent versus the same period last year. Of course, search still pulls in the lion’s share of Google’s dollars; Google-owned sites (which includes Google.com) accounted for 67 percent of that revenue. Google’s partner sites pulled in 30 percent of total revenue via the company’s AdSense program.