Google enhances online advertising service ahead of IPO

LONDON - Google, which could be valued at as much as $45bn when it floats later this year, is adding images to its online advertising facility, meaning consumers will be served with targeted pictures as well as text ads when using the search engine.

The valuation on Google, made earlier this week, would mean a valuation of 144 times its income last year and 87 times net income for 2004.

The new ImageAds service will start testing on this week and is aimed at enhancing the user experience, according to the company.

The service will be built into Google's existing AdWords system and images will be able to be uploaded by the advertisers as part of their campaign management. What images appear will be matched to the search words inserted by the web user.

Images will appear in one of four formats -- banner ads, leaderboard ads, skyscrapers and inline rectangles.

Publishers who belong to Google's AdSense programme will be able to opt in or out of receiving image ads.

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