NEW YORK (TheStreet) -- As ad space on the Internet is getting cheaper, advertising networks managed by Yahoo! (YHOO - Get Report) are becoming less profitable than the larger Google (GOOG) AdSense network, a report published on Wednesday by Adobe showed.
For content publishers, competition with the low-priced ads of search engines is getting tougher, the study said. Content may still be king, but it's not good to be the king when advertisers can reach your whole audience at low, low rates.
Adobe has been following the Internet ad market for two years, since its 2012 acquisition of Efficient Frontier, a company that maximizes digital advertising in Internet search and social media. Its latest report, released on June 16, analyzed $2 billion in direct ad spending.
That analysis showed that U.S. ad spending rose by 9% year over year.
According to another study released in April 2014, the total online ad spending reached $12.1 billion in the last quarter of 2013, well above spending in other media such as cable TV and print. The quick expansion, mainly in mobile and online, is attracting investors' attention.
Adobe's two-year study shows that Google's 78% share of the market was unchanged, as was Yahoo!-Bing's 22% share. Google's click-through rates, or CTR, and cost per click continue to rise, while CPC at the Yahoo!-Bing network fell 6%.
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