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advertising accounts for 42% of this market60, Google would have a market share of only [<5%]*61.

Intermediation in online advertising market

104.

With regard to intermediation, considering the notifying party’s estimate of a

total of EUR 9.8 billion of online advertising spending at the EEA-wide level and assuming that the split in Google's turnover between direct and intermediated sales62 applies equally to the total intermediation market (excluding classifieds and e-mail), Google's total (gross) revenues deriving from intermediation of EUR […]* million would represent [40-50%]* of the overall EEA revenue in 2006 for intermediation63. However, the notifying party notes that this data could overestimate Google's position as it does not include intermediation services provided by media agencies, which might be considered to operate in the same market as ad networks and ad exchanges.

Summary of the notifying parties’ market share estimates

105.

The notifying party's estimate of Google's market shares in the EEA in the

various possible relevant markets can be summarized as follows64:

60

Market division as reported by Jupiter, endorsed by the notifying party in its submissions containing market size estimates.

61

In the total non-search advertising market, publishers generate revenues from (relatively more profitable) direct sales and both publishers and intermediators generate revenues from intermediated sales. As Google is active in this market only as an intermediator, its market position has to be assessed only on the basis of its intermediation revenues and not on the basis of the total price of the ad paid by the advertiser (that is to say the gross revenues including the Traffic Acquisition Costs that Google has to pass on to the relevant publishers). For these reasons, Google's market position in the total non-search market is fairly limited.

62

See paragraph 16; search intermediation accounts for roughly [15-25%]* of Google’s total search advertising revenues; non-search intermediation accounts for roughly 25% of the total non-search advertising market (excluding classifieds and e-mail); the latter has been confirmed by the Commission’s market investigation for the total non-search intermediation market.

63

The value of the overall intermediation sales at EEA level in 2006 has been calculated on the basis of the split between search and non-search advertising revenues of the notifying party’s estimate of the overall market value of EUR 9.8 billion. When considering that intermediation is 20% of the search online advertising sector (with a market value of EUR 4.1 billion, see paragraph 16) and that intermediation constitutes 25% of the non-search online advertising sector (with a market value of EUR 4 billion, see paragraph 16), the value of the intermediation segment in the overall online advertising sector is EUR 1.8 billion. Google's turnover of […]* is [40-50%]* of the total EUR 1.8 billion intermediation sales value. Also note that the market share of Google represents the value of ads sold through its network (that is to say it is based on gross revenues which includes the share of revenues redistributed to publishers, also called Traffic Acquisition Costs).

64

As explained in footnote 61, it should be noted that the market size and market shares for the intermediation market segments have been based on gross revenues (i.e. including the share of revenues that is redistributed to publishers, also called Traffic Acquisition Costs).

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