OK, so I can’t let another day pass without even mentioning Google’s recent $3.1 BILLION bid to buy DoubleClick. If the deal gets past anti-trust scrutiny, and I haven’t heard anyone saying it won’t, it would give Google control over 80% of the $28.8 BILLION online advertising distribution business (more from Yahoo! Finance).
How much ad revenue per user does your site earn? Here’s something to shoot for:
Google - $36.84 (This is before the DoubleClick deal)
Yahoo! - $25.95 (Clearly Ad sense beats display)
MSoft - $9.75 (notice the drop off. It pays to have search revenue!!)
MySpace $3.95 (Not too shabby. If our site did this, we’d earn over $30 million annually!)
EBay $0.98 (keep in mind eBay’s revenue per user is over $30)
I got these numbers from Morgan Stanley who got them from ComScore Media Metrix. They’re a bit dated. Read recently updated figures on Troy Angrignon’s blog and see below…
Revenue per unique visitor: Google makings some “adsense”
Google’s Revenue Per User Well Ahead Of Yahoo!’s
Comscore figures for January still show Yahoo! (YHOO) with a comfortable lead over Google (GOOG) with unique visitors of 129.2 million during the month. Google had 113.4 million.
Yahoo!’s US revenue for 2006 was $4.366 billion. Google’s was about $5.938 billion.
Yahoo!’s revenue yield per unique user in the US was $33.79. Google’s was $52.36.
The spread is obviously large with Google having a 55% advantage.
So why would Google buy DoubleClick?
Reasons why Google bought DoubleClick: because it can, to get into display business, and to keep Microsoft out…(Read more from Business Week): DoubleClick has something that Google, for all its money and smarts, doesn’t: a vibrant advertising business for banners, videos, and other so-called display ads often intended more to promote brands than to generate immediate sales. “DoubleClick currently has relationships with virtually every major online publisher and more than half of the online ad agencies,” says Dave Morgan, chairman of TACODA, a targeted advertising network.
AdSense + Display causes 22% increase in results (from ZDNET): A DoubleClick competitor, Atlas, has analyzed the interplay of search and display advertising, in response to marketer moves from display to search marketing, to conclude a 22% higher possibility of conversion when advertisers employ both search and display in conjunction with each other.
WebProNews offers a good smattering of other media coverage (read it here)
With NFL’s recent decision to bring operations in house, and with its decision to partner with DoubleClick for ad serving, I wonder if we’ll see an advertising relationship with Google soon?
