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Monday, October 08, 2007

Who's Afraid of Google's Online Advertising Market Share?

This recent post on TechCrunch, Google’s Share of U.S. Online Ads Hits 40 Percent, by Erick Schonfeld (formerly of Business 2.0) references this blog post that came up with that estimate. That author, Ashkan Karbasfrooshan, writes:
If my math is correct, the for the love of all things holy, Google accounted for nearly 40% of US online ads in Q1 and Q2?
No wonder Google's been vigorously defending the proposed Google-Doubleclick deal on their new public policy blog quite a bit recently. It somehow seems ironic that Microsoft is fighting to block the deal on antitrust concerns. If Google's share of online advertising in the U.S. is currently 40%, what would that figure rise to if it owned Doubleclick as well? How afraid is Microsoft?

Switching gears, I'm wondering about the revenue mix of Google's advertising. I'm very curious to know how much of the AdWords/AdSense revenue is derived from AdSense for Domains. I left the following comment on the TechCrunch post:
Regarding the Google revenue mix, it’s consistently been ~99% advertising for the past few years. I don’t think there’s any indication that that will change anytime soon. See last year’s 10-K here:

Note this text: “Advertising revenues made up 99% of our revenues in 2004, 2005 and 2006. We derive the balance of our revenues from the license of our web search technology, the license of our search solutions to enterprises and the sale and license of other products and services.”

I’d like to know how much of that advertising revenue is derived from the parked domains program, AdSense for Domains ( Anybody know?
Despite TechCrunch's vast audience, no one's answered that question. Does anybody know how much revenue Google earns from AdSense for Domains?

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Anonymous Anonymous said...

"I’d like to know how much of that advertising revenue is derived from the parked domains program, AdSense for Domains ( Anybody know?"

Nobody knows since Google is extremely secretive about breaking out their revenue sources.

It's a stretch, but I speculate that a significant portion of their earnings come from the "shadowy" parked-domains end of the business -- at least that's the conclusion I draw when looking at the insiders' stock sales!

For the past two years Google has earned a daily average of $6.5 million.

For the past two years insiders (just those insiders required to file Form 4s with the SEC, not counting employee stock sales) have sold stock at a daily average of $8.5 million!

When insiders are selling so much of the stock they own that it surpasses what the company is earning by an average of $2 million every day, you have to suspect that they see some sort of "uncertainty" about the company's future profitability.

Perhaps there are concerns something in that "domains" world is going to be "found out" and they will lose a big chunk of their revenue?

Tue Oct 09, 01:14:00 AM EDT  

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