Yahoo! nears Google ad revenue after deductions

Yahoo! has closed the gap on Google's 2006 revenue from online advertising because it keeps a greater proportion of advertising spend, according to soon-to-be-published data.

Revealing contents of an imminent report into portal site economics, Jupiter Research analyst David Card said market share at the big four broke down as follows in 2006:-

• Google - 17%
• Yahoo! - 16%
• AOL - 8%
• MSN - 7%
• All others - 52%

Jupiter's figures are based on ad revenue after payments issued to advertising partners, suggesting Yahoo! holds on to a greater proportion of search marketing spend.

Earlier eMarketer figures that did not account for these so-called "traffic acquisition costs" had placed Google's revenue share way ahead of Yahoo!'s at 25.3% against 18%.

And latest figures published by eMarketer yesterday using the same calculations project that lead will extend still further by year's end...

• Google - 32.1%
• Yahoo! - 18.7%
• AOL - 9.1%
• MSN - 6.8%

... meaning the big four portals make up 66.6% of the total online advertising sector revenue, while the leader gobbles up a third.

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