Branded Advertising: Can Google Beat Yahoo There Too?

Even though Yahoo (YHOO) is second to Google (GOOG) in search, many investors consider Yahoo a good bet because the Internet giant is diversified. Yahoo, which reports fourth-quarter results after the bell today, makes money from marketers who place ads on Yahoo's search-results pages and marketers who want to brand themselves across Yahoo's many properties. Google has only been known as the best place to put sponsored-search ad bucks.

But increasingly, Google is becoming known as a place for branded advertising too.

Google is already well-known for search advertising and is increasingly building up its display and branded advertising inventory. Over the next four months, Google plans to run tests combining professionally-produced video from Sony BMG and Warner Music and advertising. As part of the test, Sony and Warner will be making channels, such as "Rock Videos" and AdSense customers will be able to embed those channels on their site. The advertisements on the Rock Video channel will be split between publisher, Google and content creator -- which in this case would either be Sony or Warner Music.

While this is just a test, Google's move underscores the company's determination to be the ad agency that marketers want to place brand advertisements with, not just search advertising.