In an extraordinary push, Google (GOOG) has become the first company to reach the level of taking in 25% of the U.S. online ad spend in 2006.
When we consider that as recent as 2005, Yahoo (YHOO) and Google were essentially tied for the amount of ad revenue they were generating.
The estimated online U.S. advertising revenue for 2006 with Google will be $4 billion. Yahoo will take in an estimated 2.86 billion. For Google this is a huge 65% increase over its 2005 numbers, growing its lead over second-place Yahoo even more.
"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," eMarketer senior analyst David Hallerman said.
While this isn't a disaster for Yahoo!, it does show that Google has become much better at providing advertising opportunities for marketers. Yahoo does have their Panama platform gearing up and bought AdInterax, along with other moves, to try to increase its market share.
The impact of these moves won't be known for awhile on whether they are what is needed to stop the bleeding. If the distance between the two increases, Yahoo will increasingly become the distant cousin.
Comment Preview