Three years of Google + DoubleClick by the numbers, and video arrives on the DoubleClick Ad Exchange

In 2008, we acquired DoubleClick, and our efforts to make the display advertising landscape a better, simpler place for users, publishers and marketers began in earnest. Today marks exactly three exciting years together. The time has flown by, and we’ve made huge strides towards our goal, largely powered by DoubleClick’s technological and industry expertise.

Here are a few of the things we’ve achieved in the past three years: we’ve offered people control over what ads they see on the web, created a new way for advertisers and publishers to buy and sell ads, given publishers a powerful tool to maximize the value of their content, introduced a way to bring a campaign to life across the web with instantly customized creative, added a platform to buy across ad exchanges in real time, enabled small advertisers to launch display campaigns in minutes, introduced a highly effective way of delivering ads to interested consumers on the Google Display Network and rolled out video ads that allow consumers to watch only the ads they want to see (while letting advertisers pay for only the ads that consumers watch).

We realize that the display industry is still complex (we actually turned to the laws of physics to help marketers navigate their way through it). But we’re getting there.

A few numbers help tell the story of the past three years:

• 5,400,000: A rough estimate of the hours our engineers have spent working on our display business since 2008 (that’s equivalent to 616 years without sleep or rest)
• 33 billion: Our estimate of the number of potential customers that our clients’ display ads have driven immediately to marketers’ websites (to say nothing of the exposure, engagement and brand-building that these ads enable)
• 5: On sites in the Google Display Network, the number of times larger that spending on display ads is today, compared to three years ago (that’s like a toddler growing to the size of a one-story house)

We’re kicking off year four with another step towards our overall vision: the addition of video ad formats to the DoubleClick Ad Exchange. We’re about to start a beta test, allowing Ad Exchange buyers to run in-stream video ads on YouTube using real-time bidding technology. (We’ll eventually extend this capability to include additional video formats and will serve ads on more videos across the web.)

We think that video ads are going to quickly become an even bigger piece of the display landscape. And in our own survey with Digiday, about 20% of marketers indicated that they wanted to use real-time bidding to buy video ads this year. Combining the power of exchange buying with the potential of video will to help grow the advertising pie (or in honor of today’s anniversary, cake) for everyone.

We can’t wait to see what else the next year has in store.

Update 10:53 AM: Fixed one of our estimates.

Posted by Susan Wojcicki, Senior Vice President, Product Management and Neal Mohan, Vice President, Product Management

The three laws of display advertising physics

It’s not just the Android team that is exploring the outer reaches of our galaxy. In recent years, advertising technology has had its own “Big Bang": a rapid onset of incredible growth and expansion in the display advertising universe.

Display advertising is one of our big focus areas. Better display advertising helps to fund the websites and content we all use and read, provides useful and engaging commercial information, and helps large and small advertisers to reach new customers, increase sales and grow their businesses.

Just as the laws of physics have helped us make sense of our own expanding universe, we think that there are three “laws of display advertising physics” to help advertisers and agencies thrive. We’ve laid out these laws and what they mean for advertisers and agencies on our Agency Ad Solutions Blog:

1. The Theory of Relativity: The distinction between different advertising technologies (like ad networks and demand side platforms) is blurring. Each of these technologies provides similar ways to achieve your marketing goals, depending on how you want to manage your campaign.
   
   
2. Fusion Theory: There’s a few different ways to deliver ads to people. Each on their own is powerful, but combining these different ways unlocks the best results.
   
   
3. The Law of Perpetual Motion: New technology is driving rapid change in display advertising—which is constantly improving marketers’ creative palettes and the way that ads are bought and sold. Embracing new media and technology provides a key way for marketers to differentiate and grow their businesses in a new universe.

The expansion in the advertising industry is leading towards a future with a better advertising universe for everyone—where people see more relevant, useful ads, publishers get better returns to fund their content and marketers can run more effective campaigns.

Posted by Neal Mohan, Vice President of Product Management