The unstoppable march of Google is benefiting the entire online advertising industry, with new predictions from Merrill Lynch claiming the search engine is helping to increase the market.
According to the analyst, Google’s innovation is expanding the online industry, with improved targeting of advertising on the internet making internet usage time more valuable.
Merrill Lynch has also revised its original estimation of 28% growth for US internet advertising, claiming the prediction is “too conservative” given that Google is likely to grow by 57% year on year.
Google recently reported revenues of $2.25 billion for the first quarter of 2006, an increase of 79% compared to the same period in 2005 (see Google Enjoys 79% Rise In Revenues For Q1 2006).
Overall internet advertising revenues totalled $12.5 billion in 2005, a new annual record exceeding 2004’s figure by 40% (see Online Aspend Hits $12.5 Billion In 2005).
New figures released by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC), reveal that internet ad revenues in the last quarter of 2005 reached $3.6 billion, representing a 34% increase over the same period in 2004.
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