Skip to main content

Two Distinct Internet Advertising Segments

Kagan Research's quarterly analysis of advertising indicates Internet-based advertising vehicles have split into two categories -- the high-growth "haves" and the sudden emergence of "have nots."

Broad-based portals Yahoo! and MSN posted weak ad revenue growth in the second quarter, of 26.7 percent and a meager 0.1 percent respectively. Meanwhile, Google ad revenue soared 77.4 percent. Barry Diller-led IAC/InterActiveCorp generated an astronomical 1,042 percent increase. But its acquisition of search engine Ask.com just after the year ago quarter skews the comparison.

The average growth rate is based on $5.07 billion in ad revenue from eight companies tracked during the three months ended June 30, in the Kagan Research/JupiterKagan online report "Old vs. New Media: The Tortoise and Hare," with the comparison to the same quarter a year ago.

The divergence into two distinct segments separated by growth rates shows a degree of maturing for Internet advertising and underscores a profit warning issued by Yahoo! that it is experiencing an advertising slowdown. "Yahoo! is clearly showing the signs of age," says Kagan Research associate analyst Erik Brannon. "While it emerged as a massive web portal, it seems pretty much topped out in its current configuration."

Although the eight-company Internet category averaged 51 percent ad growth in Q2 2006, Kagan Research expects total Internet advertising will climb 22 percent for the wider full-year survey period. Note, the Q2 data for the eight giants includes worldwide revenues, not just U.S.

Popular posts from this blog

Growing Venture Capital in APAC AI Market

Technology is a compelling catalyst for economic growth across the globe.  Artificial intelligence (AI) rides a seismic wave of transformation in the Asia-Pacific (APAC) region — a market bolstered by bold government initiatives, swelling pools of capital, and vibrant tech ambition. The latest IDC analysis sheds light on this dynamic market. Despite a contraction in deal volumes through 2024, total AI venture funding surged to an impressive $15.4 billion — a signal of the region’s resilience and the maturation of its digital-native businesses (DNBs). Asia-Pacific AI Market Development The APAC AI sector’s funding story is not just about headline numbers but also about how and where investments are shifting. Even as the number of deals slowed, the aggregate value of investments climbed, reflecting a preference among investors for fewer but larger, high-potential bets on mature or highly scalable AI enterprises. The information technology sector led the AI investment charge. Top area...