Internet, Online Advertising | featured news

France's government says it has persuaded a leading Internet provider to stop blocking online advertisements — a controversial move that would have hit online search giants such as Google.

Google Inc's revenue increased 21 percent as strength in its Internet advertising business offset a persisting drop in ad rates, stirring hopes among investors the Web search leader is close to slowing that decline.

An advertising industry group says revenue from Internet advertising in the U.S. hit $8.4 billion in the first three months of the year. That's the highest for the first quarter, up 15 percent from $7.3 billion in the same period last year.

Shares of online marketing services provider ValueClick are taking a beating after hours Wednesday following the company's Q1 financial report. ValueClick posted revenue of $152.9 million, up 31% from a year ago, but below the Street consensus at $157.8 million. Guidance had been for $155 million to $160 million.

Google, of Mountain View, Calif., issued a fourth-quarter report in January that largely fell flat on Wall Street, as profit came in well below expectations. During a subsequent conference call, executives were peppered with questions about an 8% decline in prices paid by advertisers during the period every time a user clicked on their ads.

Almost lost in Zynga’s disappointing fourth-quarter earnings report was one bright spot: advertising. Ad revenues jumped 230%, to $27 million in the fourth quarter–almost four times the social gaming company’s 59% rise in overall revenues. Chalk it up in part to a new, more interactive kind of ad from “engagement marketing” firm SocialVibe.

Google Inc's quarterly results fell short of Wall Street's heightened expectations for the holiday season as declining search advertising rates contributed to a rare miss, triggering a 9 percent slide in its shares.

Facebook's Ticker, the fast-scrolling tote board of pretty much everything your friends are doing, is ready to start selling you stuff.

Disney is buying Babble Media, whose website carries news for parents and blogs written by moms and dads, in a deal that could further blur the line between advertising and blogs.

Competition's all relative. Yahoo, Microsoft and AOL all compete for ad dollars, but they all agree that marketers ought to put their budgets into premium content, not search or social.