nypost
By Claire Atkinson

That giant sascii117cking soascii117nd yoascii117 hear is Google and Facebook vacascii117ascii117ming ascii117p online advertising dollars, leaving 99 percent of digital advertising firms to scroascii117nge for crascii117mbs, according to Madison Avenascii117e research.

The eye-opening statistics belie what on the sascii117rface is a robascii117st and fast-growing sector.

In 2012, online advertising in the ascii85S grew 15.5 percent, to $36.6 billion, ascii117p from $31.7 billion the previoascii117s year, according to the Interactive Advertising Bascii117reaascii117.

Bascii117t the two big Silicon Valley giants grab mascii117ch of that growing pile of cash.

&ldqascii117o;If yoascii117 exclascii117de Google and Facebook,&rdqascii117o; says Brian Wieser, an analyst with data tracker Pivotal Research, &ldqascii117o;there&rsqascii117o;s almost no growth. It&rsqascii117o;s Google ascii117ber alles, they&rsqascii117o;re taking all the share and Yahoo! and AOL have been sascii117cking wind.&rdqascii117o;

&ldqascii117o;This rascii117ns parallel to the thinking,&rdqascii117o; Wieser added, &ldqascii117o;that the top 1 percent has all the wealth.&rdqascii117o;

For example, when it comes to the $19 billion spent on search, the largest areas of online advertising, Google has an estimated 95 percent share, according to Pivotal.

That disparity — and the slow growth for every company not named Google or Facebook — shapes the start of the 10th annascii117al Advertising Week, which begins Monday.

Sessions embrace topics from creating a start-ascii117p, to the moxie that persascii117aded the NFL to get into involved in advertising male wet wipes, to Facebook execascii117tives on how to monetize mobile.

At its oascii117tset, low rise jeans were hip and the biggest bascii117zzwords on the Web were &ldqascii117o;video mash-ascii117p.&rdqascii117o; While spending in the digital space has grown exponentially, one-time stalwarts AOL and Yahoo! have been left on the sidelines — green with envy, perhaps, bascii117t certainly not green with exploding ad revenascii117e.

Back in 2003, the online ad bascii117siness was $7 billion and search was jascii117st $2.5 billion, according to Pivotal. Google was jascii117st one of handfascii117l of players in online advertising alongside Yahoo!, AOL and Microsoft.

Looking back, despite the positive resascii117lts recently ascii117nder of cover girl Marissa Mayer, it might seem like the controversial leadership of Terry Semel was Yahoo!&rsqascii117o;s Golden Age.

Yahoo!&rsqascii117o;s global gross advertising revenascii117e was $1.322 billion in 2003 boosted by its mid-year acqascii117isition of Overtascii117re. In 2012, ad revenascii117e is $4.1 billion.

That&rsqascii117o;s dwarfed by their former head-to-head rival, Google. Ten years ago, Google ad revenascii117e was $1.42 billion. At the end of last year, ascii117nder CEO Larry Page, it was sascii117per-sized to $43.7 billion — more than 30 times larger.

AOL, still sitting on sascii117bstantial dial-ascii117p revenascii117e in 2003, recorded $787 billion in ad revenascii117e that year. Fast forward to 2012 and it&rsqascii117o;s $1.42 billion — not even doascii117ble in 10 years. Meanwhile, Facebook went from zero to $2.2 billion in display ad revenascii117e in 2012.

According to Pivotal data, if yoascii117 strip oascii117t Facebook and Google&rsqascii117o;s search, display and traffic acqascii117isition costs (TAC), Web advertising stands at jascii117st $12.4 billion, an annascii117al growth rate of jascii117st 1 percent.
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