Google Pockets 25% of U.S. Online Advertising Revenues
October 20, 2006
Marketwatch cites a report from eMarketer that says Google will pocked 25% of the online ad market in 2006.
That's because Google's markedly better than Yahoo and other rivals at squeezing more revenue for itself from the advertising it serves up, eMarketer senior analyst David Hallerman said during a Monday interview. Also, Google's reputation as the online ad leader makes it more of a first choice for businesses trying out online advertising for the first time.
"These growth numbers establish Google as the unrivaled king of online advertising universe, leaving Yahoo, with its greater advertising diversity and years of media experience, struggling in second place," Hallerman said.
The eMarketer report also shows what a difference a year can make. In 2005, Yahoo and Google had virtually the same amount of U.S. ad revenues. Yet by the end of 2006, Google is expected to pocket almost twice the amount of U.S. ad revenues as Yahoo, according to the new eMarketer report.
This year, according to eMarketer, Yahoo will garner about $2.86 billion in U.S. ad revenues, or an 18% share. It's not a bad year, Hallerman notes, yet Yahoo's share of the U.S. online ad pie will drop this year, albeit fractionally.
1/4 is very impressive. Will they be able to hold on to that marketshare with all the new competition in the contextual ad market is the question that will be answered next year.
