Facebook to Surpass Yahoo! in Display Ad Revenues This Year

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For the first time, the largest share of US display ad revenues will go to Facebook, eMarketer estimates. The social network’s 80.9% growth in display ad revenues, to $2.19 billion this year, will mean Facebook sees 21.6% of all US display ad dollars.

That will put it ahead of Yahoo!, where eMarketer estimates display revenues will be up 16%. Yahoo!’s market share will inch up to 16.4%, while display gains at Google push the site’s share of display spending to 12.6%. Meanwhile, AOL will drop from 5.3% of display ad revenues in 2010 to 4.4% this year.

“Yahoo!’s US display ad revenues will increase by double digits each year from 2010 through 2012. Despite that, not only will Facebook’s display revenues surpass Yahoo!’s this year, Google’s revenues will exceed Yahoo!’s next year,” said David Hallerman, principal analyst at eMarketer. “What that leapfrogging trend confirms is the strong demand among brand marketers for online display ad placements.”

In the search market, Google will solidify its position as the top site with an increase in market share of nearly 4 percentage points, to 75.2%. eMarketer expects Microsoft, where search revenues will be up 16.4% in 2011, to increase its market share slightly for the next two years, while search revenues at Yahoo! will continue a slow decline, dropping to $1.1 billion this year from $1.28 billion in 2010.

Declines will also continue at AOL throughout the forecast period.

“Even as some observers expect Google’s search revenues to fall due to competition from Bing, the reported revenue reality shows that after a relatively ‘slow’ Q1 2010, net US ad revenues at Google grew by 27% or more each of the following three quarters,” noted Hallerman. “It will be hard for Bing to stop the Google juggernaut, and, in fact, Bing’s search gains are basically accompanied by Yahoo!’s search losses.”

“In fact, Google’s gains in search will help its display business, and vice versa, as more and more marketers will see the benefits of linking those two ad formats through a single provider,” said Hallerman. “That same trend will help Microsoft—but not as much as Google—since Bing’s search dollars are a mere fraction of the marketer investment with Google.”

tt twitter micro3 Facebook to Surpass Yahoo! in Display Ad Revenues This Year


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Google Gains Search Ground

Google gained ground in its dominance of the US explicit and total core search markets in September 2010, according to monthly comScore qSearch analysis.

Google Takes Larger Share of Explicit Core Search
Google Sites held 66.1% of the US explicit core search market (which measures user engagement with a search service with the intent to retrieve search results) in September 2010, up 1% from 65.4% in August 2010.

Second-ranked Yahoo Sites lost 4% of its explicit core search market share, dropping from 17.4% to 16.7%. No other explicit core search provider experienced significant month-over-month fluctuation.

More Explicit Core Search Queries Performed via Google, Microsoft
More than 16 billion explicit core searches were conducted in September 2010, up 2% from 15.7 billion the previous month. Google Sites ranked first with 10.6 billion searches, up 3% from 10.2 billion searches; followed by Yahoo Sites in second with 2.7 billion, down 2% from slightly more than that total the previous month.

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Microsoft Sites came in third with 1.8 billion explicit core searches, up 3% from 1.7 billion.

Google Also Grows Total Core Search Share
Google Sites accounted for 63% of total US core search queries conducted in August 2010, up 4% from a 60.5% share the previous month. Yahoo Sites followed with 19%, down 9.5% from 21% the previous month, and Microsoft Sites came in third with 12.5%, down about 2% from 12.8% in August 2010.

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Google Sites Jumps in Total Core Search Queries
The total number of core search queries performed via Google Sites jumped 8%, from 10.2 billion to 11.1 billion. Meanwhile, second place Yahoo Sites lost 5%, dropping from 3.6 billion to 3.4 billion. Third place Microsoft Sites increased its total number of core search queries 2%, from 2.16 billion to 2.2 billion.

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Total US core search queries grew 4% in September 2010, rising from 16.9 billion in August 2010 to 17.7 billion.