The Galaxy lost 4-1 to Real, with Cristiano Ronaldo among the goal scorers.
"He's one of the best players in the world and clearly he showed why," Donovan said. "He is not at top form quite yet but you can still see that he has moments of brilliance that aren't really teachable."
"At the end of the day, that's a team worth hundreds of millions of dollars versus a team that's worth maybe 10 (million) at the most," Donovan added.
"So we have to keep that in perspective. We enjoyed it, and we still got a lot out of it."