Facebook influence catching up with Yahoo
So what does it mean that Facebook's US’s advertising revenues will total roughly US$2.2 billion later this year? Facebook will displace Yahoo Inc to collect the biggest slice of online display advertising dollars.
Facebook's US advertising revenue will give it a 17.7 percent share of the market for graphical display ads that appear on web sites, according to a report released by research firm eMarketer.
Last year Facebook had 12.2 percent share of the US. market.
One clear implication: The numbers illustrate the growing clout of Facebook, the world's No.1 Internet social network.
It’s now worth US$80 billion, according to some investment sources. Speculation is that it will have an initial public offering next year.
eMarketer analyst David Hallerman said the overall market for display ads — which include banner ads, video ads and Web page sponsorships — is growing robustly enough that it is benefiting numerous companies.
"It's not a zero sum game," said Hallerman.
"Facebook's supreme popularity — both in terms of numbers of people and amount of time they spend there — creates a plethora of display ad impressions, mainly for its unique form of banners," he said. "And that popularity is also boosting what advertisers will pay for its display ads."
Facebook is rapidly distancing itself from its major display ad rivals, according to the study.
The second fastest growing ad-seller among the top five is Google, which should grow at a 34.4 percent rate this year, eMarketer says.
Microsoft, Yahoo, and AOL will all grow at less than 20 percent, all below the overall growth of the market, which the firm estimates will be 24.5 percent.
Web portal Yahoo will grow its online display business in the US by 13.6 percent this year, eMarketer said. But that will lag the overall U.S. display market's growth rate.
Google, which generates the vast majority of its revenue from small, often text-only ads that appear alongside its search results, is stepping up efforts to grow its display advertising business, according to Reuters.
By David Wilkening
David
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