Google to grab huge share of online ad dollars
Search and ad giant to corner a full quarter of US market in 2006, reaching $4 billion in revenue, says a report.
NEW YORK (CNNMoney.com) -- Google is projected to pocket a full quarter of US online advertising market in 2006, according to a report released Tuesday.
The online ad giant is projected to take home $4 billion of the expected $16 billion US market, according to eMarketer, an online marketing research company.
Rival Yahoo (down $0.16 to $24.02, Charts) is expected to take home $2.9 billion. In 2005, Google (down $1.83 to $419.92, Charts) eclipsed Yahoo in annual US ad revenue for the first time, making $2.442 billion, compared to its rival's $2.439 billion.
Google is expected to turn in a 65 percent growth rate this year, compared to 17.5 percent for rival Yahoo!
Google's share of the market is expected to rise to a staggering one-quarter of all online ad spending, while Yahoo's share slips to 18 percent.
Google's rise establishes it as the king of online advertising, beating Yahoo despite its diversity of advertising and more years in the business.
"By gobbling up YouTube last week, Google acknowledged that even though paid search gives it a robust revenue stream, that alone won't be enough to compete against Yahoo!, (Microsoft (down $0.10 to $28.35, Charts)'s) MSN and other major players in the years to come," wrote David Hallerman, eMarketer senior analyst, in an email.