Online advertising still booming
Wednesday, February 13, 2008/
Online advertising in the US was worth $US25.5 billon in 2007, a 27% increase on 2006, according to data collected by technology research house IDC.
In the December quarter 2007 alone, online advertising was valued at $US7.3 billion, 28% higher than in the corresponding period in 2006.
Google, as the colossus in the market, was a key beneficiary of that spending growth, with its estimated US revenue growing 40% in the fourth quarter of 2007. Interestingly, however, despite this impressive growth Google’s total market share declined slightly in the December quarter, down 0.5% to 23.7% of the market.
Other big players in terms of market share are Yahoo, second with 11.4%, Microsoft on 5.6%, AOL on 5.2% and Fox Interactive Media at 3%.
Yahoo achieved a significant improvement in performance for the year, lifting growth of 2% in the first quarter 2007 to 22% by the December quarter. But IDC analysts say that it is still lagging a long way behind Google.
All that may be part of the explanation for Microsoft’s recent bid for Yahoo – IDC estimates that if the two were to combine, they would command a total 17% of the US online advertising spend.
Amantha Imber runs a successful business — but she still has impostor syndrome Amantha Imber Inventium founder
Your future customers: How to crack the gen Z code Simon Slade Affilorama co-founder
Four stupid business decisions that burnt through $1 million Ian Whitworth Scene Change co-founder
Why corporate content will send your customers running Luke Buesnel Story League director
How to write the perfect job advertisement Alex Hattingh Employment Hero chief people officer
How to outshine the millions of websites ranking poorly on Google Adam Rowles Inbound Marketing founder