Outsell’s preliminary 2005 information industry market size and share data was released last week at the SIIA Information Industry Summit and is available in our HotTopics, “Information Industry Market Size And Share Rankings; Preliminary 2005 Results.”
Overall industry revenue is now over $285 billion. In 2005, the industry grew by 7.7 percent overall, down from a 9.8 percent growth rate in 2004. Growth of the top 20 firms was higher, at 8.6 percent, largely due to M&A activity rather than organic growth. Google and Yahoo! moved up from No. 18 and No. 14 in the market share rankings last year to No. 5 and No. 8 this year, respectively; without them the rest of the Top 20 grew by just 3.8 percent. The search players continue to gain market share, disrupt and outgrow the rest of the industry, and drive the industry’s rapid push into ad-funded content. Outsell’s final analysis, available in May, will provide market size and share rankings for all companies over $5 million in revenue.
Relative size of the segments is shown on this chart. News is the largest segment of the industry with $75.3 billion in revenues. Search, Aggregation & Syndication and Education & Training tie as the next largest segments, with revenues of $37.5 billion and $38 billion respectively. The Yellow Pages & Directories segment, at $30.9 billion last year, ranks fourth in overall revenue generation. Compared to 2004, all segments held their percentage share of the industry, with the exceptions of News, which dropped from 28 percent to 27 percent, and Search, Aggregation & Syndication, which increased its share from 12 percent to 13 percent. The single point drop in industry share for News is noteworthy given the relative size of this segment, and illustrates in stark terms the Google-and -Yahoo!-driven shift of ad dollars out of News and into Search, Aggregation & Syndication.