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  • The Perceived Tug of War Between Google and Yahoo

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    Posted on June 8, 2011 at 10:04 am

    A recent article from AdAge stated that Google, as reported by IDC, has just taken the number one spot in selling online display advertising, pushing long-standing Yahoo into second place.

    Just this year Google’s market share has grown 14.7% in the first quarter, whereas Yahoo’s share only grew 12.3% (a decline from last years 13.3%).

    It seems like Google is hurting Yahoo directly with its fast growing figures but this isn’t entirely the case. Google’s earned advertising dollars are coming from small to medium sized businesses (many of which are trying online display advertising for the first time), while the majority of Yahoo’s advertisers are big brands that mainly invest their dollars more in television advertising.

    So what does this mean for advertisers? First, it seems that more and more small to medium sized businesses are venturing into online display advertising. Second, it seems there is a growing divide between small/medium businesses and big brands: if you’re small to medium, you go Google; if you’re big, you go Yahoo.

    What looks like a tug of war in advertising all actuality is two well-known search engines running parallel to one another (at least for now). Only time will tell.

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