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Google leads Yahoo in Internet advertising

india Updated: Oct 23, 2006 12:56 IST

Internet giant Google has increased its lead over its rival Yahoo in the battle for the booming Internet advertising sector.

Its increasing share of the market contrasts starkly with the fate of advertising in the traditional media as several US newspaper groups, including the New York Times, announced on Sunday a fall in revenue and the NBC television group decided to prioritise Internet over television broadcasts.

Google stock rose nearly 7 per cent to 456.34 dollars at the close of New York trading on Sunday.

Google almost doubled its net profits in the third quarter to 733 million dollars and increased its revenue by 70 per cent to 2.6 billion dollars, of which 99 percent was online advertising.

Yahoo, however, announced a 38 per cent fall in profits in the same quarter, at 158.5 million dollars, and a rise of only 19 per cent in revenue to 1.58 billion dollars.

A year ago, Google and Yahoo were roughly neck and neck, each sharing 18 percent of US advertising revenues.

Today Google commands 23 per cent of these revenues compared to 19 per cent for Yahoo!, and is expected to end the year on 25 per cent according to the specialised institute eMarketer.

The stakes are high because US advertising revenues are expected to reach 16.7 billion dollars in 2006 and 29.4 billion dollars in 2010.

Google's search engine, by far the world leader, is also making major gains.