Investment bank Cowen has lowered its estimate for US online ad market growth to 16% year on year, from its previous projection of 19%.
Cowen forecasts that the US search market will grow 22%, with Google predicted to account for 45% of the incremental growth in the US online ad market in 2008, compared with 12% for Yahoo and 4% for Microsoft.
Cowen also says that Google will be able to make money from YouTube, Google Apps, and non-search related ad serving.
Yahoo, meanwhile, is expected to continue to lose share in search, while its display ad business is believed to be particularly sensitive to the worsening economy.
In June, the Interactive Advertising Bureau, announced that us internet advertising revenues reached $5.8 billion in the first quarter of 2008, an increase of 18.2% over the same period in 2007(see US Internet Advertising Revenues Up 18.2% YoY in Q1).
April saw the IAB reveal that online advertising in the UK grew almost 40% year on year in 2007 to a new high of over £2.8 billion (see UK Online Adspend Grows Almost 40% Year On Year In 2007).
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