Summary

Yahoo’s online advertising business has witnessed a rapid emergence in its revenue in the last quarter and a dropdown in its search and display segment. Similarly Google has also shown a modest growth in this market. The report submitted by these companies showed the current and future outlook of online advertisement market. This shows that this market is stabilizing and may show improvement in coming future.

Analysis

These figures indicate that the global online advertising market is showing a sign of getting stabilized. The growth of this industry is faster in current market than it was after the dot com crash. It may be due to the increased number of internet users, more awareness and growing broadband subscription. The diversity in this sector may also be one of the reasons of this stabilization. Few years back this market was mostly driven by high tech advertisements creating a declining the demand by dot com crash however today the online advertising market is also comprises of a large number of non- technology companies since they understood the value and importance of online advertising.

On the other hand, Yahoo’s Search and display revenue continues to collapse and losing its market share to Google. Search dropped by 19% and display by 8% .As per the data Google gained by almost 2% point to 80.80%in September from 77.83% previous month.

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