Google to own 1/4 of online ad revenue

October 17, 2006

News out today that Google will earn 25% of all the revenue from the U.S. online advertising market in 2006. That’s a phenomenal figure and just goes to show the dominance that Google has with it’s Adwords and Adsense offerings.

Google is projected to take home $4bn of oline ad revenue this year alone with Yahoo projected to only receive $2.9bn. That’s incredible considering the much broader range of advert types that Yahoo runs with, I assume Yahoo earns a sizeable chunk from display and banner advertising, something Google doesn’t do.

With such a massive stream of revenue coming in it’s surprising in some ways that Google sees the need to buy properties such as YouTube. I guess that shows that they don’t feel this dominance will last and they recognise the need to diversify (of course after milking the YouTube audience for even more ad revenue).

Edit: Graph from eMarketer added.

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