Many industry experts have been talking about "the de-portalization of the internet" and "death of the portal" in regards to online advertising. However, research by eMarketer.com proves that this notion is a bit premature. The portals considered the "Big Four" are Google, Yahoo, AOL, and MSN. In 2006, these four represented 57.4% of the total revenues spent on online advertising. This trend seems to be increasing and eMarketer estimates, the top portals will all increase US net ad revenues in 2007, with nearly $13 billion going to just those four sites. In the changing landscape of online advertising, companies are looking for mass-marketed brands and portals that have already been established. Three of the four portals have been around for at least 10 years and even the youngest of the four, Google, is still an established brand. When the percent increase vs. the prior year is compared however, the numbers look slightly different. The percent increase in the top two portals is getting smaller every year, but is still significantly higher than other portals. The bottom two, AOL and MSN, are still seeing annual percent increases. Therefore, the "death of the portal" isn't here quite yet and it doesn't look like it's going to happen anytime in the near future.
Sunday, March 18, 2007
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2 comments:
I think eventually AOL and MSN will start loosing money and end up buying out another portal just to stay competitive with the top two. I don't think it would be out of reach for MSN to buy Facebook or another social network to target their audience even better, and thus be more profitable from advertising salesx.
The sectoral approach by you is good and definitely worth a read by many others. i m forwarding the link of this post to many others so that they can also have hands on experience of your good thoughts.
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