Google’s Ad Revenue Expected to Continue Increasing

Google is still leading in net ad revenue

The top five websites in the online advertising industry are experiencing a revenue increase of 20.5%.

Among these companies, Google is leading the way with an estimated increase of 23.5% throughout this year, bringing their total estimated ad revenue to $12.4 billion.

Yahoo! came in behind Google with $3.4 billion in revenues, which is a decline for the second year in a row. Although hasn’t increased revenues in the last few year’s, it’s predicted that they will reach $3.51 billion in 2012.

Out of the top five sites, Facebook expects the highest growth. In 2010, the social network saw an increase of 117.8% and a 164.1% increase in 2009. In 2011, is predicted that Facebook will see revenues up 80.9% to reach $2.19 billion. Although it is experiencing the highest growths, they have been declining throughout the last few years.

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Here’s how the top five round out:

This spending increase for Facebook, Google and Microsoft bring the total increase of net ad revenues to $20.3 billion. This growth for the top five sites is almost double the total for the entire Internet advertising market, which is 10.5%.

When it comes to the entire percentage of online ad spending, Google is consistently seeing an increase in market share. In 2009, Google experienced 34.9% of total online spending. In 2010, that percentage increased to 38.9% and in 2011 it’s expected to reach 43.5%. By 2012, it’s predicted by eMarketer that Google will reach 47.6% of total online ad spending.

Google has been busy lately as they’ve made more changes to their algorithm, which is helping more quality content get found. They’ve taken strides to eliminate high rankings for content farms, which has been a criticism from users in the past.

I would not be surprised to see these numbers increase throughout the year as Google’s algorithm becomes more refined and quality content-centric. They are continuously making updates so that they can continue to be the king of search engines.

These stats and predictions come from eMarketer. For more on this topic, take a look at this article from eMarketer.