Facebook Set To Overtake Yahoo In Display Ads Market Share

June 22nd, 2011 at 1:27 pm

Facebook is already making strides not only as a popular social network but also in becoming a popular advertising medium online. And it may already be making Facebook a handsome sum for ad revenues. This year may be significant for Facebook in this area as it is expected to overtake erstwhile leader Yahoo in terms of display ad revenues.

Facebook has become popular as a social networking site. Is has initially shunned any form of advertising on its site in order not to alienate its users. But its growing number of users, that so far is expected to reach around 700 million worldwide, has become an attractive venue for companies to advertise their wares online. It also offers Facebook a profitable opportunity to earn revenues in order to survive online to cater to its users. It has since opened up to display ads on its site, and the rest is history.

According to eMarketer, Facebook is expected to reach around $2.19 billion in terms of net display ad revenues in the US this year. That would be nearly double the revenue that it took in previously. Not only that, Facebook is expected to take the top spot in the display ad market in the US by this year. It is expected to overtake Yahoo for display ad market share with around 17.7 percent. Yahoo meanwhile will hold a 13.1 percent market share this year, which is estimated to further fall to 12.5 percent next year. This might be significant for Yahoo since third placer Google might be edging up to take its place at second with an improving 12.3 percent share of the display ad market expected for this year.

Facebook took over selling and handling the ads being displayed on its site from its partner Microsoft, which took over the responsibility when their partnership began in 2007. The software giant may not have done a very good job during that time as it did not make any impact in the market. But after Facebook took back the responsibility of selling display ads on its own site, it has seen a significant improvement in time. It just goes to show that Facebook knows how to run its own site better than anyone else, especially for display ads. It is a responsibility that should not be handed down to a third party or partner like Microsoft. Facebook may be making further headway as it aims to improve its current standing amid its still increasing popularity as a social network worldwide.


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