Paid advertising on the internet is now a massive and truly globalbusiness, and with every passing day it just keeps on getting bigger.For example, in the first quarter of 2006, internet advertising revenuesreached a new high of $3.9 billion and by the end of the third quarter of the same year, this figure had gone past $4 billion.However, in the same Q3 period in 2007, internet advertising revenuessurpassed $5.2 billion, setting another new high and continuing thetrend of record breaking quarters that has been a constant ever sincetheInternet Advertising Bureaustarted keeping records back in 1996.With the ever-increasing worldwide popularity of the internet, this isprobably only what you would expect.Nevertheless, moving from $4 billion to $5.2 billion dollars in one yearindicates a phenomenal rate of growth, indicating that more and morebusinesses are wiling to commit ever more substantial proportions of their advertising budgets to promoting their businesses online in orderto get their name and products in front of an increasingly discerninginternet-connected global audience.And, as they have done for the last few years, Google continue tomonopolize and dominate the online advertising industry with their pre-eminent advertising programs AdWords and AdSense.This also continues a trend that was initially established when Googlerevolutionized web publishing and advertising by turning personal blogs,websites and forums into potential revenue generating centers forindividual webmasters, whilst at the same time setting new standardsfor effective and affordable targeted promotion and advertising.Both of Google’s phenomenally successful programs operate on thebasis of what is known as the Pay Per Click (PPC) or sometimes theCost Per Click (CPC) advertising business model.In simple terms, using PPC involves a website or blog publisheragreeing to carry AdSense ads on their site, whilst an advertiser who islooking to promote their products online approaches Google through theAdWords program.Google then places these ads alongside relevant Google search engineresults, as well as on targeted websites and blogs.

For example, if an advertiser is selling automobile products, then theiradverts will only appear alongside automobile related search results andon websites and blogs that focus on matters pertaining to cars orautomobiles.As suggested above, the internet advertising industry is huge, andGoogle owns a very significant chunk of that market. You can thereforework out for yourself that they must be earning phenomenal amounts of money from the AdWords and AdSense programs.And yet, it is known that Google are now actively looking at introducingother forms of promotion to their advertising business portfolio, whichof course raises the question of why it would be doing so, and whattypes of advertising are they most actively interested in?And this is not some idle rhetorical or 'for interest only' question. WhatGoogle decides to do in the online advertising market, you can almostinevitably guarantee everyone will eventually do.Therefore, knowing why Google are doing what they are doing, and thedirection that they are moving in should give any savvy internetmarketer or online business entrepreneur a clear insight into whereonline advertising is likely to go over the next two or three years.This, in turn, should enable anyone who is in this situation to positiontheir business to be able to maximize the received advertising revenuesas the market continues to develop.