Yahoo will probably continue to lose market share as long as its content is growing slower than the Internet as a medium

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(Continued) The RFS Newsletter, Oct. 21, 2006. Page 2
In terms of ad-space-inventory, Yahoo will probably continue to lose market share as long as its content is growing slower than the Internet as a medium. Google sells ads when you search for, say, "Miami Florida Real Estate". The paid ads are around five bucks a click from one of the big real estate brokers. Many of the results lead to content sites, like Trulia and Zillow, both of whom make their own money reselling Google ads. Yahoo, of course, has the exact same paid search opportunity. But that business only grows if more people are searching with Yahoo.

Meanwhile, and despite the housing bubble burst, online real estate ad spending is still rapidly increasing. Internet real estate advertising jumped to a $2 billion level in 2006 and will surpass the $3 billion mark in four years from now, and beating newspapers in terms of advertising market share. There is room for even more growth. Sixty-one percent of agents do not advertise on the Internet. And 87 percent of agents are not buying keywords on Google or Yahoo.

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