Report: Facebook, Google Overtake Yahoo In Display Ad Market Share

Yahoo’s once dominant position with display advertising is now officially over. Research firm eMarketer released figures Wednesday showing that both Facebook and Google surpassed Yahoo last year in display-ad revenue, with $1.73 billion and $1.71 billion, respectively.

According to eMarketer, overall spending on online video, sponsorships, rich media and banner advertising grew 25.2 percent to $12.4 billion in 2011, and is projected to increase to $15.39 billion in 2012.

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Driven by such products as “Sponsored Stories,” Facebook grew its display business by over 50 percent last year. But eMarketer says it’s Google that will enjoy the steepest growth trajectory over the next several years. Boosted by the strength of its mobile display, YouTube and DoubleClick businesses, eMarketer projects that Google will garner $4.76 billion in display-ad revenue by 2014 and control nearly 22 percent of the market.

Meanwhile, the research firm downgraded its projections for Facebook after the social networking company’s S-1 filing revealed lower-than-expected growth projections for 2011.

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Yahoo had a dominant position in display advertising just three years ago, peaking in 2008 when it enjoyed a market share of 18.4 percent. But the company finished with $1.35 billion in display revenue in 2011, controlling just 10.8 percent of the market. By 2014, eMarketer projects that market share will dip to 7.5 percent.

Republished with permission from paidContent, which writes about the transformation of the media-and-entertainment industries in the digital era, with a focus on emerging-business models and technologies.

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