Display advertising is growing fast, and search giant Google expects to be a big part of that growth over the next two years, according to one company executive.

"We would be disappointed in 2008-2009 if we don't have a very significant position in the display ad marketplace," Tim Armstrong, Google's North American president for advertising and commerce, told attendees at the Bear Stearns Media Conference in Palm Beach, Fla.

According to Armstrong, YouTube will play a big part in Google's display ambitions. But so far, Google has had trouble monetizing YouTube.

YouTube aside, Google also expects its DoubleClick acquisition -- approved today by EU regulators -- to help it make inroads into display.

Many industry watchers believe Google will need a partner like DoubleClick if and when rival Microsoft manages to acquire Yahoo. Although Google dominates search, display is thought to be a more open sector.

Display could also be a factor in what looks like a possible bidding war between Microsoft and Google for Digg. The social bookmarking site has become something of a battleground between Microsoft and Google, with the software giant working to lock up a slew of ad deals across the web.