Google to score ad revenues coup: eMarketer
By Ben Charny, MarketWatch
Wednesday, October 16, 2006
SAN FRANCISCO (MarketWatch) -- Google Inc. is on track in 2006 to become the first company ever to pocket 25% of all U.S. online ad spending in a calendar year, according to a new report from eMarketer, an online ad tracker.
For 2006, Google's expected to report U.S. advertising revenues of $4 billion of the $16 billion expected to be spent in 2006 this year in this regard.
Google's U.S. ad revenues represent a 65% jump from the $2.4 billion in comparable revenues Google reported last year, according to the upcoming eMarketer report.
The newly-revised figures eMarketer is to formally release Tuesday demonstrates how Google continues to pull away from Yahoo Inc. , which is ranked second in this important revenue category.
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.
In 2005, Yahoo shared 19.4% of the dollars, or $2.43 billion in 2005, according to eMarketer.
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