Google to Get One in Four Web Ad Dollars

NEW YORK By the end of this year, Google is expected to command a position of leadership rarely seen in the media world — 25 percent market share.

That’s according to Web researcher eMarketer, which released new growth estimates for the online ad space on Tuesday. According to eMarketer, Google will see its ad revenue soar to more than $4 billion by the end of the year — a number that matches the record ad spending pulled in by the entire industry during the most recent second quarter, and roughly a quarter of the $16 billion predicted for Internet advertising by eMarketer for 2006 overall.

While most of Google’s ad revenue comes from search advertising, it is making strides to expand further into brand advertising. Its AdSense network of third-party Web sites is already larger than Google properties, and the company is aggressively promoting its video and display products. Its deal to buy YouTube last week signaled its intent to be a major player in video advertising.

Google’s growth trajectory continues to be mind-boggling, based on eMarketer estimates. In 2005, it and Yahoo each pulled in roughly $2.4 billion in ad revenue. But this year, Google is leaving its top rival in the dust, as revenue is expected to surge by nearly 65 percent versus 17.5 percent growth predicted for Yahoo.

Both Yahoo and Google are scheduled to release third quarter 2006 earnings results this week.