Contact Us

Welcome to ineedhits Blog

Welcome to the ineedhits Search Engine Marketing blog, where we share the latest search engine and online marketing news, releases, industry trends and great DIY tips and advice.

Wednesday, February 13, 2008

Google the Biggest Loser as Internet Advertising Grows By 27% in 2007

Posted by @ 4:12 pm

It would appear that online advertising is getting more popular by the day. Online advertising grew 27% last year to $25.5 billion in 2007 according to analyst group IDC. However it wasn’t all great news with Google having a decrease in its share of the US market for the first time in two years, dropping 0.5% to 23.7%.

IDC has said that online advertising is going to get even stronger as it is a sector unlikely to be affected even if the U.S. economy capsizes this year. IDC analyst Karsten Weide, believes businesses affected by the sluggish U.S. economy will cut other advertising budgets before cutting their online campaigns. “We think there will be some effect on ad spending overall, but we think online ad spending will almost be unaffected even if there’s a depression,” he said.

So just who are the big guns of the online advertising world? According to IDC, Google remained the big dog, snagging 23.7 percent of the market. Yahoo! came in a distant second with 11.4 percent, followed by Microsoft’s 5.6 percent, AOL’s 5.2 percent, Fox Interactive Media at 3 percent and InterActive Corp. (IAC) with 1.5 percent.

Weide even weighed into the Microsoft/ Yahoo! merger debate, stating that “if a merger between Microsoft’s new media business and Yahoo! would come to pass, the combined entity would have a net U.S. advertising market share of about 17%. It would not quite bring Microsoft-Yahoo! to where Google is in online advertising in the U. S., but it would give them a much better fighting chance than if they went it alone.”

So as speculation mounts as to whether the merger between Microsoft and Yahoo! actually will go ahead, it will be interesting to see if Google’s market share does continue to fall. Feel free to let us know what you think by leaving a comment.

Courtney Mills Courtney is an online marketing and communications specialist at ineedhits - a leading search engine marketing firm with over 16 years experience. Courtney has been living and breathing online marketing for over 5 years. She specializes in web and communication marketing, while providing news and opinion to online marketing communities.

View Courtney Mills's profile

Discussion (1 - comment)

Correct me if i am wrong, but it seems like yahoo is wiggling its tush like a (not so cheap ) whore recently.
First bill gates had an offer in on it then rupert murdoch, now it seems that Jeffrey Bewkes the aol guy wants a feel.
Personally, i like the YahooSoft handle. So, c`mon bill get your BIG wad out!

By Burfieldstuff - February 19, 2008

Add Your Comments


Keep up to date with the latest from our blogs.

Subscribe to all blog posts

The Newsletter

  • New Posts
  • Popular
  • Comments


More in Search Engines, Search News (1136 of 1797 articles)

With all the news surrounding Microsoft's bid to take over Yahoo!, its surprising Yahoo! chose this week to launch their ...