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BizReport : Research : March 20, 2007


Google, Yahoo control the bulk of online ads

Advertisers may get a little bit more for their money at smaller portals - more control, specifically - but still, most marketers prefer to deal with the large portals. According to a new report from eMarketer, Google, Yahoo, MSN and AOL account for more than 66% of ad dollars in 2007.

by Kristina Knight

The report, Portal Marketing: The Big Four, found that in 2004, the so-called Big Four, accounted for roughly 47% of online ad dollars. Yahoo pulled in the most ad revenue (18%), followed by Google (13%), MSN (9%) and AOL (6.8%). By 2006, Google was fully in the driver's seat with 25% of ad revenue. Yahoo held 18%, AOL had 7.2% and MSN held 6.7% of the ad revenue. The Big Four accounted for a little more than 57% of the online ad spend.

In 2007, researchers believe the trend will continue the same way, but with more ad dollars going to the Big Four. They estimate that Google will account for 32% of online revenue, followed by Yahoo (18%), AOL (9.1%) and MSN (6.8%). If the numbers hold true, the Big Four will account for about 66.6% of online ad revenue, leaving less than 40% to be spent in other areas and through other portals.

Why is this?

According to the report, "Traditional marketers tend to find safety in established, mass-market brands." In 2006, advertisers only spent about 6% of their ad budgets online, so they need established brands to serve those ads. More ad dollars are going online in 2007, however, that amount is still relatively small. Established brands will continue to be the preferred portal because of the amount of money spent online.






Tags: AOL, Google, MSN, search engines, search marketing, Yahoo








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