The online advertising industry saw growth accelerate in the first quarter, with the combined advertising revenues of the four largest players (Google, Yahoo, Microsoft, and AOL) jumping almost 15 percent to $8.8 billion. This compares to 10 percent annual growth in the fourth quarter, and negative growth the first two quarters of last year (aka, the Great Advertising Recession of 2009).
Overall growth would have been even stronger if AOL didn’t have such a rough quarter. It was the only one of the four companies to show a decline in advertising revenues, down 19 percent. Google’s ad revenue was up 21.5 percent, Microsoft’s was up 8.8 percent, and Yahoo’s was up 3 percent (although the display portion was up 20 percent). As a result of AOL’s poor showing, the combined $8.8 billion total was down 2.6 percent from the fourth quarter’s $9 billion
I keep track of these numbers every quarter for these four companies, which turns out to be a good proxy for overall online advertising revenues since they represent a majority of the industry’s revenues. The numbers represent global advertising revenues, and include network revenues paid to affiliates through AdSense and Yahoo’s ad network. Google’s licensing revenues for Google Enterprise Apps have been stripped out. For Microsoft and AOL, I include only the advertising portions of their online revenues as reported in their quarterly earnings statements.
Below is a table with all the numbers:
Online Advertising Revenues (in millions)
|Sequential Growth Q/Q||-6.55%||-0.05%||4.77%||12.60%||-2.60|
|Annual Growth Y/Y||-4.63%||-5.76%||1.22%||10.20%||14.86%|
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Microsoft, founded in 1975 by Bill Gates and Paul Allen, is a veteran software company, best known for its Microsoft Windows operating system and the Microsoft Office suite of productivity software. Starting in 1980 Microsoft formed a partnership with IBM allowing Microsoft to sell its software package with the computers IBM manufactured. Microsoft is widely used by professionals worldwide and largely dominates the American corporate market. Additionally, the company has ventured into hardware with consumer products such as the Zune and...
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AOL is a global advertising-supported Web company, with display advertising network in the U.S., a substantial worldwide audience, and a suite of popular Web brands and products. The company’s strategy focuses on increasing the scale and sophistication of its advertising platform and growing the size and engagement of its global online audience through leading products and programming. History of Aol: AOL was founded in the early 1980’s as Control Video Corp, with an online service, Gameline, for the Atari 2600 console. ...