Internet Publishing, Broadcasting & Search Portals
Brief Excerpt from Industry Overview Chapter:
Companies in this industry publish content on the internet or operate websites designed to help people find content online. Major companies include Facebook, Google, IAC, and Twitter (all based in the US), as well as Baidu, NetEase, and Tencent (all based in China) and South Korea's NAVER.
The profitability of individual companies depends on their ability to deliver relevant entertainment and information to the most people, and to offer advertisers desirable target markets. Advertising is a major source of industry revenue, accounting for more than half of US revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Sales of online advertising account for just over half of US industry revenue; sales of digital subscriptions (access to databases, e-books, periodicals, and games) make up about 30%. More than half of US digital advertising revenue comes from mobile advertising, according to the Interactive Advertising Bureau and PricewaterhouseCoopers. Other revenue sources include desktop search and display formats, desktop classifieds, and lead generation. Search revenue is recognized from the fees businesses pay internet firms to link their company's site or name to a specific search word or phrase. Display advertising is the result of a business paying an internet company for space to display advertising on its website; display advertising includes banner advertising, video, rich media, and sponsorships.
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