Commentary

Google Tops Media Revenue In First Half Of 2014

Public data can provide a wealth of information, especially in the Internet age. Forty-four of the largest online public companies pulled in $85.9 billion in digital media revenue during the first half of 2014, up 17% from the year-ago period. No surprise that Google generated the most with $31.4 billion, up 12%.

Strategy Analytics pulled together public filings from the top 44 companies to create the list of how online media revenue performed from January through June 2014. Amazon came in at No. 2 with $10.3 billion, followed by Facebook with $5.4 billion in online revenue for the first half of the year -- up 66% compared with a year ago.

Chinese Internet service Tencent also generated $5.4 billion, up 43%. Apple iTunes generated $5.2 billion; Chinese search engine Baidu, $3.4 billion; Netflix, $2.6 billion; Yahoo, $2.2 billion; Yahoo Japan, $2 billion; and Microsoft Online Service, $1.9 billion.

Yahoo was the only top 10 company to see a decline in digital media revenue during the first half of 2014 year-on-year, at 3%, per the analysis. Among the 44 companies, Chinese Internet security firm Qihoo sw the largest increase in revenue, up 123% to $582 million. Twitter was close behind with 122% growth to $562 million, and Facebook came in at No. 3 among the companies that grew the most in revenue during the first half of the year.

Here is another interesting stat compiled by Strategy Analytics based on the publicly available data -- by category, advertising accounts for 77% of the digital media revenue; followed by online games at 15%, which experienced the most growth at 26%; and video at 5%. Music and content delivery networks like Akamai and Limelight serving content on behalf of publishers split the remaining 3%. Advertising and video each grew 24%; and content delivery networks, 21%.

"The Chinese companies have been particularly adept at generating revenues across a variety of services," said Michael Goodman, director at Strategy Analytics. "The fastest mover, Qihoo, for example has done well in both advertising and Internet value-added services, driven by expansion into search and mobile. Ultimately, this increases revenue per customer, a vital component of sustained growth." 

Next story loading loading..