Study Finds Google Controls Nearly Half of Internet Advertising Market; Internet Biggest Contributor of New Ad Dollars to Global Markets
December 20, 2011
Market study including projections for online advertising budgets for 2012 finds Google holding 44.1%, while Yahoo! and Microsoft trailing at combined 12.3%.
(Agoura Hills, CA) A research report released Monday by ZenithOptimedia reveals that Internet giant Google (NASDAQ:GOOG), holds a far reaching and significant lead out of all major Internet portals online when it comes to Internet ad expenditure. The Mountain View, California based search company is found to have increased its market share in 2010 to 44.1 percent from the previous year where it held still a significant lead of 41.9 percent in 2009. According to the report Yahoo! was found to currently hold 8.3 percent while Microsoft’s hold is at just 4.0 percent.
The report is focused on global ad expenditures forecasting how companies are likely to spend their marketing dollars through 2014 and was conducted by ZenithOptimedia, which is owned by Publicis Groupe (PUB.FR), a French multinational advertising and communications company, headquartered in Paris, France. ZenithOptimedia has 218 offices in 72 countries throughout the world.
In relation to search specifically, comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, also released its monthly comScore qSearch analysis of the U.S. search marketplace. It’s report, which is focused specifically on search queries, found that Google Sites (Google.com or sites offering its search results) led the U.S. explicit core search market in November with 65.4 percent market share, followed by Yahoo! Sites with 15.1 percent and Microsoft Sites with 15.0 percent (up 0.2 percentage points).
Both reports clearly show Google as the leader in delivering search results which the company monetizes with ads. While Americans have conducted 19.9 billion total search queries in November from both home and work locations (comScore), Internet advertising continues to grow much faster than any other medium. With paid search expected to grow nearly 30 percent, Google will likely remain the major beneficiary into the next few years.
Aside from search the advertising giant has also aligned itself nicely within the advertising marketplace. Online advertising includes contextual ads on search engine results pages (Google Adwords), banner and rich media ads (Google’s acquisition of DoubleClick), social network advertising (Google+), online classified advertising (Google Base), advertising networks (Google AdSense) and e-mail marketing (Google Gmail). Google acquired DoubleClick, the online advertising company, from two private equity firms for $3.1 billion in cash in early 2007.
After the internet, the main contributor to global ad growth is television, which is also beginning to move online and yet an additional avenue Google has already prepared for with both its acquisition of YouTube and its release of Google TV. Google acquired YouTube for $1.65 billion in an all-stock transaction in late 2006 while it released Google TV in 2010 when it announced partnerships with both Logitech and Sony whom would develop televisions and Blu-ray devices that incorporate the Google TV platform on televisions.
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