Mobile will contribute more to both banner and search ad spending, and eventually to video, too.
But if the ads work, a good chunk also could be shifted from search ad budgets.
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It also generates a significant number of internet search queries and earns search ad revenues as a result.
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While search ad revenues were flat from the second quarter, spending was up 13% from a year ago.
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Ferrell previously worked at Google for four years focusing on search ad quality.
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Hence Yahoo shareholders stand to gain the most from rising search ad rates.
Search ad spending was still increasing in Japan, despite the effect of the earthquake and tsunami late in the first quarter.
They were still a single-digit percentage of text search ad clicks, about 6%, but Google only rolled them out widely in October.
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While companies are typically charged a certain sum every time a display appears, a search ad only costs an advertiser when it's clicked.
Yahoo has come closest to building a big local search ad business with its two-year-old consortium of 784 newspapers that swap ads and links with the portal.
It does not have the instant gratification of a search ad but it does have the life-time value of sales, ROI, amplification and advocacy from the community.
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If you're buying a search term ad, you can monitor more or less in real time.
Such a gain would theoretically help boost Google's search-ad business, though a company spokesman declined to comment on the matter.
Small and mid-sized advertisers are the ones that propelled Google's search-ad growth during the last decade and they are also boosting Facebook's growth.
That infrastructure is just the tip of the iceberg for Google, who makes the large majority of its money on search and ad delivery.
The coming shift has major implications for Google, which dominates the Internet search market with around 66% market share and more than 75% of all search-ad revenue.
The point was to find out to what extent copying can be eradicated purely through the voluntary cooperation of site owners, search engines and ad networks.
The company gave advertisers more flexibility to use rival search-engine ad systems and said it would allow rivals to opt out of having their content appear on some Google websites.
When users search for those terms, the business' ad appears beside search results.
The old banner ad and search models will be transformed by mobile computing.
However, the power Google holds over recipients of its organic search traffic and competing ad networks is much larger than most in the industry are aware.
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The more demand for the search term, the more advertisers pay for each click on the ad that appears when users search for that term.
Second, because display ads drive consumers down the funnel so that they click more on search ads and eventually become a customer, this process also increases overall ad cost due to additional search clicks.
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Robertson initially issued demerits to experts who uploaded a search word to the wrong ad campaign.
Cool-chasing ad agencies in search of bright shiny objects and freebies for clients added to the frenzy.
Earlier this year, I noted that a background check company named Intelius had placed a Google ad on a search of my name.
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The reality is many large companies manage huge lexicons of keyword phrases in order to optimise their ad spend across search, and Google content partnerships.
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Google has moved from a search engine to a powerhouse ad placement company and is pushing the edges of growth in mobile computing as well as several other markets.
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