For the past few quarters, we’ve analysed the amazing rate at which advertising spending is moving online. Now we’re able to look at full-year 2007.
Specifically, we analysed the change in US advertising revenue at 17 major media companies from 2006 and 2007. The companies included Google (GOOG), Yahoo (YHOO), Time Warner (TWX), Disney (DIS), Viacom (VIAB), CBS (CBS), and Clear Channel (CCO). The companies span all the major advertising sectors: Online, TV, Print, Radio, and Outdoor.
- Total US ad revenue across all 17 companies grew 9% from 2006 to 2007, from $53 billion to $58 billion
- Online ad revenue grew 28%, from $14 billion to $18 billion.
- Offline grew only 3%, from $39.5 billion to 40.6 billion. This was helped significantly by the inclusion of affiliate fees and (and global revenue) at CBS, Viacom, and News Corp.
- Online ad revenue grew by $4 billion.
- Offline ad revenue–in all other media–grew by $1 billion.
So advertising revenue is flowing online at a frantic rate. That’s the whole story? No. Let’s look at how that online revenue breaks down.
- Online ad revenue grew 28%, or $4 billion.
- Online ad revenue at Google grew 44%, or $2.7 billion.
- Online ad revenue at Yahoo, Microsoft, and AOL grew only 15%, or $1.3 billion.
- Google captured 2X as much revenue as its closest three competitors combined.
It is true that perhaps a third of Google’s growth came from AdSense revenue, which is placed on third-party sites–so other companies are benefiting from this growth. But the growth on Google’s properties alone still vastly exceeded the growth on AOL, Yahoo, and Microsoft.
Another fun stat:
- The year-over-year growth of revenue on Google.com (US)–approximately $2 billion–was more than twice as much the growth of ad revenue in all of the offline media companies in this sample combined. This is such an amazing fact that it bears repeating: A single media property, Google.com (US), grew by $2 billion. All the offline media properties owned by the 13 offline media companies above, meanwhile–all of them–grew by about $1 billion.