Google's dominance in internet advertising is set to grow predicts
Forbes magazine as the current downturn in the economy sees all
providers of internet advertising and search suffer.
And while Google is suffering too, it is suffering less than its
competitors. This comes as a result of earnings announcements from
Google and Yahoo! in the past week.
Forbes notes "even though Google's revenue fell a bit short of
analysts' expectations, the search engine giant reported an earnings
gain of 26%, to $1.4 billion for the quarter." This compares to Yahoo!
who said this week "third-quarter earnings fell 64%, to $54 million, on
revenues of $1.79 billion, and that the wounded company would lay off
1,500 employees."
And the article says:
"In fact, Google's good news in bad times may be based in a bigger
trend. Overall, online advertising spending numbers are looking sickly.
According to numbers released earlier this month from the Internet
Advertising Bureau, spending fell in both the first and second quarters
of the year. That marks the first time that either first or second
quarter spending has dropped with respect to the previous quarter since
2003.
"But search advertising--the small text ads placed beside search
results--show signs of relative health. Those pay-per-click ads
accounted for 44% of online ad spending in the first half of 2008, up
3% from the first half of last year, while spending on banner ads
stayed flat at around 21% of the total."
To read this article in Forbes, see www.forbes.com/technology/2008/10/21/google-downturn-monopolist-tech-enter-cx_ag_1022google.html.