The remarkable revenue growth registered by Google and Yahoo is coming at the expense of the 10 largest information companies in what is a $263 billion industry, according to a new report by research and advisory firm Outsell released Tuesday, InformationWeek reports. "Google and Yahoo are clearly diverting advertising revenue" from established information companies; "they're literally sucking the financial air out of the room," the report says.

The 10 largest information companies (Daily Mail & General Trust, Gannett, McGraw-Hill, Pearson, Reed Elsevier, Reuters, Thompson, Tribune, VNU, and Wolters Kluwer) generated $60 billion in revenue in 2004, a year-over-year increase of $4 billion, according to Outsell. Google and Yahoo together accounted for $6.5 billion in revenue in 2004, also an increase of $4 billion from the previous year.

Some of that extraordinary growth is from marketing and advertising spending that would have gone to the other 10 companies, according to an Outsell analyst, particularly newspapers and B2B trade magazine. Part of the reason for the shift may be that marketers are paying too much for print ads or too little for online ones, according to Outsell.