Google Grows Digital Ad Share in New Categories

News Flash: Google is huge! Okay, so maybe that isn’t so much a news flash, but the fact that Google continues to grow is definitely something that remains top of mind for advertisers.

In the week of May 23, 2011, it was announced that Google surpassed Yahoo! in digital display advertising after Yahoo!’s 16-year stint on top.¹ IDC’s latest “Worldwide and U.S. Internet Advertising Report” stated that “Google’s net U.S. display advertising revenue share grew to 14.7% in 1Q11 from 13.3% in 4Q10, while Yahoo!’s declined from 13.6% to 12.3%.”²

Niche Websites Help Boost Google Growth

One of the key drivers of this switch in ranking is the fact that Yahoo!’s inventory is based on properties that they own as well as large partnerships, while Google’s display ads are served on Google properties such as Gmail and YouTube, and also a large list of small and medium-sized niche sites.

While these shares shifted, so did the share of media types within the digital space and the interactive market as a whole. The IAB reported that digital advertising is up to $7.3 billion in 1Q11 — a 23% increase from 1Q10.³ Of this $7.3 billion, 33% went to display (up from 29% in 2009) and 48.7% went to search (down from 53.4% in 2009).¹

Internet advertising revenue from the Interactive Advertising Bureau

Connecting with Healthcare Consumers and Professionals

So what does this mean for advertisers? From a healthcare marketing perspective, this means that Google is a more viable option for us to connect with all of our targets in a relevant environment. Small to medium-sized niche websites are more likely to be more specific to an industry and more relevant to our target. Consumers and physicians are more receptive to a message when it comes from a reliable source on a trusted site within relevant content.

Market Awareness Is the New Competitive Advantage

With the interactive space being such a fluid medium, it is crucial to understand what is happening in the industry at all times to ensure that we can recommend the ideal media mix to connect with our clients’ target audiences. One thing’s for sure: as the market shifts, we’ll keep you informed.

References

1. Griffith, E. (May 27, 2011). Google Bests Yahoo in Display. Ad Week.

2. Ebbert, J. and Neal, N. (May 27, 2011). IDC Says Google Revenues Biggest In Display; Yahoo! Convenes Investor Day; IAB Reports Q1 U.S. Online Ad Spend. AdExchanger.com.

3. Gilbert, L. (May 26, 2011). Internet Advertising Revenues Hit $7.3 Billion in Q1 ’11. Interactive Advertising Bureau.