18 Mar 2008
Google - Stealing old media’s lunch money!
Another testament that online advertising is not just a fad. Henry Blodget of Alley Insider reviewed 17 major media businesses (including News Corp, Time Warner Cable, Viacom, Google, Yahoo, Microsoft, AOL, The New York Times, and CBS Radio). Here are some amazing highlights:
Total US Ad Revenue, 2006 to 2007:
- 9% growth, from $53 billion to $58 billion
Offline Ad Revenue:
- 3% growth, from $39.5 billion to $40.6 billion.
Online Ad Revenue:
- 28%, from $14 billion to $18 billion
Google captured twice as much revenue as its closest three competitors combined.
- Online ad revenue at Google grew 44%, or $2.7 billion.
- Online ad revenue at Yahoo, Microsoft, and AOL grew 15%, or $1.3 billion.
And now ladies and gentlemen…drum roll…..The year-over-year revenue growth for Google.com (US)–approximately $2 billion–was more than twice the growth of ad revenue in all of the offline media companies combined.
In my consulting engagements, I often have had to fight for increased spending on online advertising, versus continuing to spend on offline, established media powerhouses. The numbers above show me to be part of a media shift revolution. I have a feeling this Google thing is here to stay…what do you think?
