Google Inc. announced that it has begun letting advertisers choose the websites that carry their ads. The company also announced the introduction of animated graphical advertisements.

Google's new site-targeting tool will allow advertisers to choose among the content sites in its network. It will pay based on the number of times an ad is served, rather than number of clicks it receives.

Currently, the new program is being used by a small number of advertisers. Google plans to extend the service more widely in the upcoming weeks. Site targeting users may choose to place text ads, static image ads or new animated image ads.

This move of new animated image ads positions Google to expand its revenue base.

Last week Google reported record revenues of $1.256 billion for the quarter ended March 31, 2005, up 93 percent year over year.

"This was a very strong quarter for Google. We continue to execute well and we have been able to take full advantage of the growth in online advertising. In addition, we performed well across our operations with our engineering and product teams delivering dozens of new products and features for Google users around the world," says Eric Schmidt, Google chief executive officer.

"Google has clearly thrown caution to the wind in its development of a this "not necessarily new" approach to online advertising. This will either be a great way to emphasize its power as a major player or the beginning of the end for the the search giant," says Kevin M. Ryan, principal, Kinetic Marketing Results, Inc.