Follow us:

Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

February 11, 2008 at 1:45 PM

All the fuss is about this: U.S. online ad revenue up 27 percent to $25.5 billion

Analysis firm IDC just reported that U.S. online ad revenue last year grew to $25.5 billion, up 27 percent from 2006.

That pot of money covers search, display and other forms of online ads, and it’s projected to continue growing as advertisers follow people from old media to the Interne. That’s why Microsoft is trying to buy Yahoo.

Their common rival Google has been the dominant player in this market, but, interestingly, Google’s net U.S. market share “declined for the first time in two years due to slower growth in domestic fourth quarter sales,” IDC found. It’s a slight decline — 0.5 percentage points — to 23.7 percent in the fourth quarter. It still has more than twice the share of its two closest rivals individually.

IDC conveniently put the figures in context with the news of the day. Karsten Weide, program director for IDC’s Digital Marketplace: Media and Entertainment service, said, in a statement:

“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% based on our 4Q07 data. 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.”

Comments | More in Advertising, Google, Yahoo acquisition

COMMENTS

No personal attacks or insults, no hate speech, no profanity. Please keep the conversation civil and help us moderate this thread by reporting any abuse. See our Commenting FAQ.



The opinions expressed in reader comments are those of the author only, and do not reflect the opinions of The Seattle Times.


The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►
The Seattle Times

To keep reading, you need a subscription upgrade.

We hope you have enjoyed your complimentary access. For unlimited seattletimes.com access, please upgrade your digital subscription.

Call customer service at 1.800.542.0820 for assistance with your upgrade or questions about your subscriber status.

The Seattle Times

To keep reading, you need a subscription.

We hope you have enjoyed your complimentary access. Subscribe now for unlimited access!

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Activate Subscriber Account ►