Post by Mitch Joel, lamenting the lack of long tail or democratic split of ad revenues; Your Media Is Controlled By A Handful Of Companies (Yes, Even The Internet)
October 3, 2011, worldwide digital advertising accounted for about $64.03B. Google generates approximately 364% more revenue from advertising than it's next closest rival, Yahoo! With Facebook at $1.86B in advertising revenue (excluding virtual currencies/goods) for 2010
For once I have to disagree with the point he is making. And the reason is quite simple; Google doesn’t generate all of that on google.com or from their own sites as such– quite the opposite;
Google Sites Revenues - Google-owned sites generated revenues of $6.74 billion, or 69% of total revenues, in the third quarter of 2011. This represents a 39% increase over third quarter 2010 revenues of $4.83 billion.
Google Network Revenues - Google’s partner sites generated revenues, through AdSense programs, of $2.60 billion, or 27% of total revenues, in the third quarter of 2011. This represents a 18% increase from third quarter 2010 network revenues of $2.20 billion
Taken from http://investor.google.com/
So in their Q3 for 2011 alone the Google network revenues were above FB for the whole of 2010 (2.2 vs 1.86) – and that money IS the long tail! Sure some of it also goes to big media companies from the NYT down to our fvn.no – but it also goes to blogs and small niche sites.
(Sidenote; does blogger.com count as “google owned” in this split? If so the the actual long tail part could be even bigger)
So, if you go beyond the headline, into the numbers, there is proof positive that this wealth at least is “trickling down”!
