What earnings reports reveal about online ads

AP News
Posted: Apr 16, 2013 5:52 PM

Companies that sell online advertising have begun releasing earnings reports for the latest quarter. Here are highlights of recent quarterly earnings reports from selected Internet and media companies and what they say about the state of spending on advertising.

— Tuesday: Yahoo Inc. says first-quarter revenue shrank by 7 percent. The weak spot was in one of Yahoo's former strengths — display advertising. After subtracting the commissions that Yahoo pays its partners, the company's display advertising revenue fell by 11 percent from last year to $402 million. That development suggests that Yahoo is losing more ground in a key area of Internet advertising to Google Inc., which already dominates search advertising, and Facebook Inc., whose online social network is becoming a more powerful marketing magnet.

The Interactive Advertising Bureau and PricewaterhouseCoopers release a report showing that U.S. Internet advertising revenue grew 15 percent to a record $36.6 billion in 2012, with mobile ad revenue growing faster than other types. Mobile ad revenue more than doubled from the previous year to $3.4 billion. It accounted for 9 percent of the total in 2012, up from 5 percent in 2011. Mobile ads represent an area of growth for many companies.

Coming up:

— Thursday: Google Inc., Microsoft Corp.

— May 1: Facebook Inc.