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).
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).
