For the first two years, Google is losing market

Slower growth in revenue Google's online advertising market in the United States recorded in the IV quarter of 2007. the first time in the past two years, according to a report, IDC. As a consequence, decreased slightly and the company's market share. Experts attribute this to seasonal factors, m. to. prerequisites for the fall in the future is not observed.

In the IV quarter of 2007. the first time in the past two years the growth rate registered a decline of income from Google's online advertising, according to research firm IDC report. The growth of advertising sales slowed to 40%, which is 10% lower than for the III quarter 2007. Lower advertising revenues caused the decline in the share of the common market by 0.5% to 23.7%.

However, in comparison with IV quarter 2006. Share of Google's total market grew by 2.1 %, and advertising sales rose 40.2%, experts say IDC. The decline in the final quarter came despite the fact that spending on online advertising in the U.S. over the period 2007. increased by 28% compared to the same period in 2006. and amounted to $ 7.3 billion. The total market size of online advertising in 2007. increased by 27 % to $ 25.5 billion.

... - But the preconditions for the further decline in revenue growth Google, the market yet - in the I quarter 2008. We probably will see improvement in performance compared to the previous quarter ...

According to expert investment holding company ... ...

In the IV quarter of 2007. Google for the first two years of slow growth in the online advertising market, the U.S..

In its report, IDC analysts also note that the company may be formed by the merger of Microsoft and Yahoo, will get a good chance to catch up with Google's online advertising market, as well as in other areas of internet business within 4-5 years. According to Boris Ovchinnikov, if Microsoft and Yahoo merge, in the short term, the position Google is not affected, only after 2-3 years.

... - Control of Yahoo by Microsoft could significantly increase revenues from the Yahoo media advertising, and possibly reduce the chances of Google make money on the emerging market of online video advertising ...

... - Says Carsten Vajda (Karsten Weide), program director of new media and entertainment IDC. - So, Microsoft-Yahoo would not be able to catch up with Google, but will be a very serious competitor to the Internet giant ...

In addition, the IDC report says that the integration of existing web services, advertising platforms and technical resources of Microsoft and Yahoo would significantly improve their products and services for consumers and advertisers, which will lead to an increase in revenue from online advertising and . Also, analysts believe that Microsoft-Yahoo could turn out to be stronger than Google in the areas of Internet business, as mobile advertising, social networks and behavioral targeting.