Don’t look now, but Facebook’s takeover of the world continues!
According to a new report by research firm eMarketer, the social networking giant’s web advertising revenue is growing at such a clip that it will overtake both Google and Yahoo this year and become No. 1 in online display ads.
eMarketer’s data projects that Facebook will generate $2.2 billion in U.S. advertising revenue in 2011, which equates to roughly 17.7 percent of all display ad revenue across the industry.
Just last year, Facebook only accounted for a little more than 12 percent of total online advertising revenue. Such profound year-over-year growth shows that more and more businesses of every size are adopting Facebook’s package of banner ads, web page sponsorships and video ads to reach consumers.
“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,” said eMarketer’s David Hallerman. “And that popularity is also boosting what advertisers will pay for its display ads.”
The data paints a picture of a rapidly changing landscape in online advertising, one in which Facebook is gobbling up more of the pie while Google and Yahoo are both failing to keep up.
Google appears to be in better shape than Yahoo, at least. eMarketer forecasts that Google’s 2011 U.S. advertising revenue will total $1.15 billion, an increase of more than 34 percent from 2010 and a figure that gives the company 9.3 percent of all online advertising revenue. Yahoo, meanwhile, despite an increase in overall advertising revenue this year, will see its share of total revenue fall from 14.4 percent to 13.1 percent.
That trend is expected to continue into next year as well. In 2012, eMarketer estimates that Facebook will handily increase its dominance in the U.S. display market, relegating Google and Yahoo to fighting for the second spot. Facebook is expected to garner 19.4 percent of the market in 2012, while Google and Yahoo will be in a near-deadlock at 12.3 and 12.5 percent respectively.
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