Internet Advertising Up 27% in 2007; Google’s Share Slipped Slightly
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Written By Sepideh Saremi | February 12, 2008 | Share This
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Internet ad revenue was up 27% in 2007, or $25.5 billion, analyst group IDC reported, while Google’s market share in Q4 experienced its first downturn in two years. The search giant still dominates Internet advertising but lost half a percentage point last quarter compared to Q3, for a total of 23.7% market share. Its quarterly growth rate was just above 40%, down from year-over-year quarterly growth of 50% in the previous quarter. The loss was attributed to slower Q4 sales growth.
IDC also speculated that a Microsoft-Yahoo acquisition would give those combined companies a sizable chunk of market share:
“If a merger between Microsoft’s new media business and Yahoo! would come to pass, the combined entity would have a net U.S. advertising market share of about 17% based on our 4Q07 data,” says Karsten Weide, program director for IDC’s Digital Marketplace: Media and Entertainment service. “It would not quite bring Microsoft-Yahoo! to where Google is in online advertising in the U. S., but it would give them a much better fighting chance than if they went it alone.”
Topics: Advertising: Online, Google |