Does Google Lose Market Share as Web Advertising Grows?

Interesting analysis from online REPORTER:

"For the past few years, Google has lorded over online media and advertising, but according to recent data other media companies might have a fighting chance for more market share.

In its quarterly wrap-up report, researcher IDC says total US Internet ad spending in the fourth quarter of 2007 grew nearly 28% over the same quarter in 2006 to $7.3 billion. For the full year 2007, online ad revenue grew 27% year over year to $25.5 billion.

IDC research also found that Google’s net US market share declined for the first time in two years due to slower growth in domestic fourth-quarter sales. The market leader’s net US Internet advertising market share was down 0.5 percentage points to 23.7% last quarter compared to Q3 in 2007.

Google’s estimated net US Internet advertising sales (excluding the traffic acquisition costs they pay out to the partners in their networks) grew by a little more than 40% in 4Q07, but its year-on-year growth rate in the quarter before had been 50%. It doesn’t sound like much of a decline, but it might be good news for Microsoft and Yahoo if they merge.

Source:
THE online REPORTER
February 16-22,2008
http://www.onlinereporter.com/

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