Oct 6, 2007 113 reads by Navneet Kaushal

Based on IAB's report which said advertising revenues almost reached nearly $10 billion in the first half of '07, WatchMojo deducts that Google took in 40% of US Online Ad Revenues which totals $10 billion.

"How much went to Google?

Google generated $3.66B in Q1 2007 revenues and $3.871B in Q2 2007, that’s $7.531B. Its Q1 revenues grew 63% compared to the first quarter of 2006. Its Q2 revenues represented a 58% increase over second quarter 2006 revenues of $2.46 billion and a 6% increase over first quarter 2007 revenues of $3.66 billion.

Anyway, in the first 6 months, Google did $7.531B in sales. Q3 is slow for display/banner sales because, well, a lot of people are on vacation and the summer effect kicks in, only entertainment (think new movie releases) really see a spike in advertising. But with Google, I don’t think that will really be the case. Q4, we know, is always blowout quarter.


How much did Google account for in the US?

Last year, it was reported that $1 out of every $4 of online advertising spent in the US went through Google. Not search, that was much more, we’re talking all online advertising. If you consider that Google did $7.531B in Q1 and Q2, and all online advertising was $10B, and that Google’s global sales

  • represented 48% of total revenues in the second quarter of 2007, or $1.75B
  • represented 47% of total revenues in the first quarter of 2007, or $1.81B.

The math suggests that Google did $3.57B from global, and (oh-oh) $7.531-$3.57 = $3.97 Billion in the US in Q1 andQ2.


How much was online ad spending in the first half of 2007 again?

Right, “for the first six months of 2007 were nearly $10 billion”, not even $10B.

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.”

Currently, one share of Google Inc costs $594.04. Associated Press Bear Stearns analyst Robert S. Peck raised his price target for fiscal 2007 to $625, from a previous $550, and to $700 for fiscal 2008, as according to him, Google is "one of the best operating companies within our coverage universe."

Image Source: Fresh Pack Studio and Read Write Web.

Navneet Kaushal

Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
Navneet Kaushal
Navneet Kaushal
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