Leading Online Ad Firms Registered 51% YoY Growth in Ad Revenues

Broad-based portals Yahoo and MSN posted weak ad revenue growth in the second quarter, of 26.7% and 0.1% respectively. AOL and Ebay posted 40% and 34% ad revenue growth rates respectively. Meanwhile, Google ad revenue soared 77.4%. IAC/InterActiveCorp generated an astronomical 1,042% increase (its acquisition of search engine Ask.com just after the year ago quarter skews the comparison) while ValueClick registered 151.0% increase, according to Kagan Research.
The average growth rate of 51.0% is based on $5.07 billion in world-wide ad revenue from eight companies tracked during the three months ended June 30. Kagan Research expects total Internet advertising will climb 22% for the wider full-year survey period. (Note the Q2 data for the eight giants includes worldwide revenues, not just U.S.)

The 51% growth rate for the eight website outfits far surpasses advertising sales on national cable networks and local ads sold by cable systems. From a sample of companies, Kagan estimates that in Q2 2006 national cable network advertising jumped 9.7% and local cable ads edged up just 5.5% (cable network aren't just dependent on advertising because most collect monthly carriage fees).

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