Google Sucks Even More Life Out of Old Media in Q3

That giant sucking sound? It’s Google (and Yahoo, AOL/TWX, and Microsoft) hoovering up all of the country’s advertising revenue.

We updated our “U.S. Advertising Share Shift” analysis for Q3. And guess what? The rate at which Google and the rest of the online industry are stealing share from traditional media was even faster in Q3 than in Q2.

In Q2, according to our updated analysis of 18 media companies, the leading online companies (Google, Yahoo, AOL, and Microsoft) increased their share of total advertising revenue year-over-year by 4 percentage points, from 22% to 26%. In Q3, this rate of gain accelerated to 5 points: from 23% to 28%. From Q2 to Q3 2007 alone, the online big four increased their share 2 points, from 26% to 28%…

The micro-economy known as Google, meanwhile, captured the majority of the gain. Google’s share of U.S. advertising jumped to 14% from 10%, up 46% year over year.

Put differently, online’s Big 4 grew U.S. advertising revenue by $1 billion in Q3, with Google itself accounting for $700 million of that. The rest of traditional media, meanwhile–TV, print, radio, outdoor–grew revenue by…$93 million, less than 1/10th as much.

See Also:
SAI Research Spreadsheet: The Great Ad Share Shift
Great Ad Share Shift: Q2 2007 vs Q2 2006

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