Due to increasing spending and more focus on branding, the growth of online display ads are expected to surpass the growth rate of paid search ads in 2014, research from eMarketer has found.

Between 2011 and 2014, the firm estimates that both search and display will see increases greater than the rise in overall online ad spending in the United States, at about 13.9 percent. However, from 2011 and 2014, online display spending is expected to begin growing faster than overall online spending, while the rate of search spending growth falls into third place.

Graph: eMarketer

Driving growth in display advertising will be online video ads, forecast to grow by at least 24 percent each year through 2014. This year, the research group expects U.S. advertisers to spend US$12.37 billion on paid search, and $8.88 billion on online display ads. In 2014, search is still expected to net the most spending ($18.84 billion), but display is expected to get closer to search spending, at $15.92 billion.

Affinity Express's Unmana Datta wrote that it makes sense display ads are catching up, and for three very good reasons:
1. Display ads are vastly more customizable.
2. Display ads are just more attractive.
3. Display ad placement is more flexible.

Google announced a 32 percent increase in net income during the third quarter of the fiscal year, reaching US$2.17 billion, Market Watch revealed today.

"It's clear the digital economy continues to grow rapidly, a relentless trend that continues to drive continued growth in our core business ... and also fuel our momentum in our newer businesses," said Patrick Pichette (left), Google's chief financial officer, Investors.com wrote."We saw strength in every major product area in Q3 -- that is search, display, mobile -- as well as apps and enterprise. And when I say our newer businesses are seeing great momentum, I really mean it."

Image: Financial Post

The same time last year, Google reported a net income of $1.64 billion, according to Market Watch. Meanwhile, revenues hiked up by 23 percent from $5.94 billion to $7.29 billion year-on-year, Economic Times informed.

USA Today reports that Twitter might start making a profit from advertising. "Promoted Tweets" may appear on some Twitter.com search results, according to co-founder Biz Stone. The move already has followers: Best Buy, Bravo, Red Bull, Sony Pictures, Starbucks and Virgin America.

Responses to the business model were two-fold, the Guardian pointed out. Some felt that the site needed to make revenue "inevitably", while others doubt its success. ReadWriteWeb described it as "non-invasive," "nothing too crazy," "nothing terribly exploitive," "entirely predictable" and that it had "no banner ads" or "sales of data to direct marketers."

Later on this year, Twitter will be including ads in users feeds, ads that will be "relevant," the Los Angeles times reported. Promoted Tweets will offer relevant information whereas those that "don't resonate" with users will be removed, Stone said. Advertisers will be charged according to a cost-per-thousand system.