Internet Advertising: you’ve been googled!
Last week Google hit the headlines on the back of forecasts for its UK revenues for 2006 which we expect to reach £920 million, up 90% on 2005, cited as proof of a structural shift away from broadcast media to the internet |
Media, Internet |
November 2006 Access this report
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Internet advertising: movin’ on up
Internet advertising rose 4.2% YoY in 2009 on a like-for-like basis in the UK, according to IABUK/PwC, due to growth in search, with classified and display down; however, previously unreported spend, including Facebook, pushed the total to £3.54 billion
Last year, for the first time, Google accounted for over half of spend (versus one third in the US) and 12% of UK ad revenue, a market presence that is significantly larger than in the US |
Media, Internet |
March 2010 Access this report
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Internet advertising and Google in UK: modest slowing of growth in H2 2010
Google’s UK results and other key indicators for the first half of the year confirm that online advertising increased in line with our overall forecast for 2010
We anticipate that deteriorating consumer confidence in H2 2010 will lead to deceleration of advertising growth, including the internet – confirmed by early anecdotal feedback from agencies and ad networks
Our revised forecast for Google’s UK ad revenue is 15% YoY growth in 2010 and 11% YoY growth for UK internet ad spend to £3,800 million |
Media, Internet |
August 2010 Access this report
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Internet advertising & e-commerce: UK, Germany, France
Germany, the UK and France are the three largest advertising markets in Europe, worth €40.3 billion in 2009, of which €8.9 billion was spent on internet ads, 65% of the total across the continent (based on IAB Europe survey of 19 countries)
In per capita terms, the UK and Germany spend the most on advertising: in 2009, roughly €200 per head was spent in the UK and Germany, 40% more than in France |
Media, Internet, Non-UK Media |
August 2010 Access this report
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Google’s US and EU antitrust cases: 1:0 Google
In January 2013, the US Federal Trade Commission (FTC) cleared Google of anticompetitive practices in its core search and advertising business – a corresponding European antitrust investigation is pending, but looks set to take a (slightly) stricter stance on Google.
The FTC’s closing of the search bias investigation is key to Google’s strategy to integrate and expand its general and vertical search products, such as its e-commerce channels Google Shopping and Google Maps, with direct positive revenue implications. |
Media, Internet, Technology |
April 2013 Access this report
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Google: mobile hits margin
Google’s income in Q3 was hit by fx headwinds and a rise in traffic acquisition costs (TAC) for its ad business as well as by higher than expected losses at Motorola
Headline growth in gross advertising revenue continued to slide, primarily due to the effect of the strong dollar; of more concern, rising TAC cut gross margin by 3 ppts
Mobile now accounts for the majority of growth in ad revenue, which should improve as mobile ad yields rise, though net margin could decline if Google has to pay out a greater share to partners such as Apple |
Media, Internet |
October 2012 Access this report
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Google.cn shutdown could cost $2-4bn to 2015
Google is almost certain to close its China site, Google.cn, foregoing much of the revenue and potential upside from the world’s largest internet population and fifth biggest market for internet advertising
Google.cn has performed reasonably well to date, taking about 20% of spend on paid search compared to c65% for market leader Baidu. We would expect Google’s future performance to improve but not to displace Baidu |
Media, Internet, Non-UK Media |
March 2010 Access this report
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Google, the US 700MHz auction, and futurology
Google has announced that it will be bidding for 700MHz spectrum in the US, after the FCC adopted most of the ‘open access’ provisions for which it lobbied |
Mobile, Telecoms |
December 2007 Access this report
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Google+: hollow circles
Google+, the social network, has around 100 million users worldwide, although user growth appears to have stalled and usage is low on weak network effects
Facebook users, now 70% of the adult internet audience (excluding China), have no incentive to switch to Google+, starving the social network of vital momentum
Facebook is likely to dominate socially enhanced search, unless Google+ takes off, which seems unlikely |
Media, Internet |
March 2012 Access this report
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Google winning battle for internet display
Search remains the main engine for Google’s core business, but display is rising fast: we estimate display gross revenue will reach $9.2 billion in 2013, representing 16% of projected gross revenue (excluding Motorola)
Gross revenue from YouTube looks set to more than double to nearly $4 billion by 2013. Revenues from Google’s ad networks and platforms are also growing strongly, mainly to the benefit of publishers
We project Google’s net revenue from display next year will amount to $4.2 billion, equal to 10% of net revenue from its total advertising business |
Media, Internet |
August 2012 Access this report
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Google versus Facebook: display advertising
Facebook is winning the battle for eyeballs and advertising in the internet display arena, with revenues projected to reach $5.3 billion in 2012
By comparison, we expect Google to achieve revenue of $2.5 billion, after traffic acquisition costs, though it remains the king of internet advertising, due to its dominance of search
Increasing advertiser demand for scale and performance will make many publishers increasingly reliant on one or both of the internet giants for audience and revenue growth |
Media, Internet |
December 2011 Access this report
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Google UK results: mobile and display ascendant
Google’s UK revenue grew 23% to £676 million in Q4 2011, taking 2011 revenue to £2,525 million, up 20% year-on-year, 2 ppts below our November estimate
Globally, gross revenue rose 25% year-on-year, with mobile and display performing strongly, but rising costs pulled net revenue growth down to 8%
Our growth forecasts for Google’s UK revenue remain unchanged; we expect UK internet ad spend to rise from £4.7 billion last year to £5.8 billion by 2013, representing 35% of total advertising, as print continues to fall |
Media, Internet |
January 2012 Access this report
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Google UK Q3 results: modest slowdown
In Q3, Google’s UK revenue increased 14% YoY to £520 million – in line with our expectations of slowing growth in H2 – our forecast for 2010 remains at £2,075 million (all figures excluding estimated hedging gains)
In its earnings call, the company shared global display and mobile revenue numbers – on an annualised basis these now represent $2.5 billion and $1 billion respectively (with some overlap) – much higher than previous estimates |
Media, Internet |
October 2010 Access this report
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Google UK Q3 results beat expectations
Google’s UK gross revenue jumped an impressive 25% YoY in Q3 to £651 million, with its paid search business continuing to outperform the advertising market
We have raised our YoY growth estimate for Google’s UK revenue to 22% for 2011, pushing our growth forecast for UK internet ad spend this year to 15% (up 3ppts). Our forecast for 2o12 is unchanged at 13% YoY growth
UK revenue growth fell shy of Google’s global revenue growth of 33% YoY, with Asia, India and Brazil particularly strong, and mobile increasingly significant |
Media, Internet |
October 2011 Access this report
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Google UK Q2 results: flatlining
A last minute rescue proposition has postponed the threat of Setanta entering into administration by at least another week, subject to meeting its revised payment schedule of sums owing to the Premier League
The profound commercial difficulties experienced by Setanta highlight the weakness of EU efforts to ensure competition in the sale of live televised rights to top UK domestic football and underline the inflated rights costs that would face any other complementary premium pay-TV sports supplier |
Media, Internet |
July 2009 Access this report
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Google UK Q1 results: reaccelerating
Google’s UK revenue increased 18% YoY in Q1 to £534 million (net of hedging gains), its highest rate of quarterly growth since the recession started in 2008
Better than expected performance is due to reacceleration in paid search, underpinned by improving levels of retail e-commerce and business and advertiser confidence
We have raised our 2010 forecast for Google UK to 18% YoY growth and for UK online ad spend to £3,875 million, representing a like-for-like rise of 13% YoY |
Media, Internet |
April 2010 Access this report
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Google UK Q1 results: feeling the squeeze
Google UK delivered solid performance in Q1, with gross revenues up about 8% YoY to £440 million; however, the huge growth of previous years has ended, due to a combination of recession and growing maturity in search
Key verticals (finance and travel) are being impacted by the downturn, but Google should continue to benefit from the secular shift of advertising to online and increasing advertiser focus on measureable ROI |
Media, Internet |
April 2009 Access this report
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Google UK Q1 results: cyclical slowdown
In Q1, Google’s UK gross revenue increased 13% YoY to £602 million (net of hedging gains), down from the 18% growth in the last quarter and in Q1 2010
Slowing growth appears to be due to the weak state of the UK economy, with consumers and advertisers alike holding back on online spending compared to previous years
We have downgraded our 2011 UK growth forecasts for Google and internet advertising spend to 12% and 9% YOY respectively; while search remains the main market driver, online display is increasingly the key battleground |
Media, Internet |
April 2011 Access this report
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Google TV: US launch imminent
Google has confirmed the first content partners for the US version of Google TV – including Turner, HBO and Netflix – which is expected to launch within the next 2 weeks
No new distribution partners have been announced and rumoured pricing for enabled Sony TV sets suggests that Google TV will initially be a premium product
At present, Google TV’s main selling point appears to be providing a decent web surfing experience to the TV set – in our view, better content is needed if it is to compete with Apple TV and other internet TV devices |
Media, TV, Internet |
October 2010 Access this report
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Google TV in the UK: friends with few benefits
Nearly a year after rolling out Google TV in the US, Google has confirmed plans to launch its ‘smart TV’ operating platform in Europe and the UK by early 2012
To date, Google TV in the US has been a disappointment, with little broadcaster support and, until recently, expensive devices, resulting in low adoption
The content issue is likely to dog Google TV, both here and in other European markets; access to key broadcaster TV and video programming will be a major challenge |
Media, TV, Internet, Technology |
September 2011 Access this report
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