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AOL
Employees Don't Use AOL Search
AOL has been consistently 4th place in terms of search share, and Jason Calacanis
thinks he knows why - because AOL sucks to search with. Calacanis, who joined
AOL after the company bought his blog network, Weblogs Inc., slammed his parent
company's woeful search...
Google
Builds AdSense API
An application programming interface for AdSense will permit site publishers to
offer users the opportunity to perform a variety of AdSense functions without
leaving the publisher's website.
Opera
Brings Browser To Pocket PC
The Opera Mobile browser has become available for the Pocket PC platform and runs
on Windows Mobile 5 and 2003 SE.
Google
Maps Used To Find Missing Kids
A page that worth bookmarking is MissingKidsMap.com, a mashup that uses Google
Maps API and information provided by the National Center for Missing and Exploited
Children (NCMEC) to create a regularly updated map of the origins of missing children
in the United States.
Google
Settlement Brings Unhappiness
A $90 million settlement of claims brought in a class-action click fraud lawsuit
against Google has been approved by the courts, but a number of people have filed
complaints with the bench about the settlement's terms.
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05.31.06
Internet Ad Revenue Near $4B For Quarter
 By
David A. Utter
The Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC) announced
that online ad revenue reached $3.864 billion for the first quarter of 2006.
More advertising spending has found its way into the coffers of companies like Google and Yahoo. The report from IAB pegged first quarter 2006 ad revenue at a new record of $3.864 billion. Fourth quarter 2005 ad revenue hit $3.6 billion, while all of 2005's ad revenue was over $12.5 billion.
"The steady growth of online advertising is a clear indication that marketers continue to believe in the opportunities and effectiveness that this medium delivers in reaching and engaging their consumers," said Greg Stuart, CEO, IAB.
A substantial chunk of that first quarter revenue probably ended up in Google's bank account. Google reported in its first quarter 2006 financials that it had revenue of $2.25 billion. Virtually all of Google's revenue comes from online advertising.
That would leave roughly $1.6 billion for the rest of the industry to divide up between the various competitors. There will be more opportunity for businesses to spend on Internet advertising, as Microsoft should fully launch its adCenter service in the next few weeks.
The money should keep coming. "It is abundantly clear that marketers are seeing a compelling opportunity to leverage the Internet as a powerful medium that drives both branding and sales results," said Peter Petrusky, Director, Advisory Services, PricewaterhouseCoopers.
Online spending for advertising is on a pace to reach $15 billion in revenue for all of 2006. That would easily exceed last year's total and mark the second year in a row that revenue reaches double-digit billions.
Considering Google's dominance of the industry, it may not be far-fetched to consider that Google is poised to snare around $10 billion of that revenue. Publishing 2.0 blogger Scott Karp posted his opinion that revenue distribution of online ad dollars would mimic the "long tail" of Web 2.0 site popularity:
(W)hy shouldn't we expect revenue distribution to follow the same pattern, with a handful of companies (i.e. Google, Yahoo) controlling most of the revenue and the remaining online players fighting over the crumbs? When Google found a way to monetize the long tail through AdSense, it became the "head" of a new long tail. We shouldn't mistake long tail economics to mean that everyone will get a share of the wealth.
About the Author:
David Utter is a staff writer for WebProNews covering technology and business. |
