NEW YORK, NY (July 18, 2006)—NEW YORK, NY (July 18, 2006)—As Yahoo! and Google release their earnings results this week, and eMarketer has new online advertising figures.
Google and Yahoo! together will account for more than 40% of all Internet ad revenue in the US this year, eMarketer says, with Google accounting for 23% and Yahoo! 19%.
"The dominant place these two online companies play in the Internet ad game is not going to go away," says David Hallerman, senior analyst, eMarketer. "In fact, we expect the rich will just get richer, as the Q2 numbers each company releases this week will show."
Online advertising spending will reach $16.7 billion in 2006, eMarketer predicts. That's a growth rate of 33.2%, the highest growth year-over-year expected this decade.
By 2010, online advertising will climb to $29.4 billion, but that represents just a 10.5% growth rate from the previous year. As a percentage of total media, online advertising's share will remain low, at just 5.8% in 2006, eMarketer predicts, and it will achieve only a 10.1% share by 2010.
As for paid search, Google and Yahoo! still own the lion's share. In 2006, Google will get 54%, and Yahoo! 20% of the $6.4 billion search market. Paid search will account for 41.5% of online ad spend this year, and search spend will hover in the 40% range for the remainder of the decade.
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