To The Victors Belong The Web Ads

Yahoo! and just a few other sites rake in the big bucks

One question plaguing Internet stocks lately has been whether companies that charge nothing for using their Web sites could succeed simply by selling advertising. The good news: Yes, companies can thrive on advertising alone. The bad news: The number of those that can do this seems to be shrinking, as marketers spend more and more with just a handful of big sites. According to the most recent survey by the Internet Advertising Bureau (IAB), the share of ad revenues among the top 10 sites continued to expand, from 64% a year ago, to 75% in the first quarter of this year.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.