Google and Facebook continue to gobble up more U.S. display ad market share, with the search engine taking the market leader mantle from the social network in 2013.
Google (NASDAQ:GOOG) is creeping up on
market leader Facebook and should overtake the social network in U.S. display
ad sales by 2013, according to eMarketer.
Facebook closed 2011 with 14 percent of
the display ad market on sales of $1.73 million. Google, long a laggard in the
U.S. display advertising market, nipped at the leader's heels last year,
netting 13.8 percent share on sales of $1.71 million.
The U.S. display advertising market,
which includes spending on online video, sponsorships, rich media and banner
advertisements, grew roughly 25 percent to $12.4 billion in 2011.
eMarketer expects Facebook to maintain
its lead in 2012, grabbing $2.59 billion in share, compared with $2.54 billion by
Google, as the two combine to net 33 percent of the display ad market.
Facebook will start to include its
Sponsored Stories ads in the News Feed and lure more big-brand advertising
dollars, said eMarketer principal analyst Debra Aho Williamson
Facebook's ad revenues have been more closely watched of late as the social
network hurtles toward its initial public offering (IPO) this year. The network
has more than 850 million members whom Facebook can target with advertising.
Google will surpass Facebook by
grabbing nearly 20 percent of the market in 2013, compared with less than 18
percent for Facebook. Google's U.S. display sales will grow 45.3 percent to
$3.68 billion, with Facebook boosting sales 27.6 percent to $3.29 billion for
In 2014, the marketing researcher sees
Facebook slipping to 17 percent, with Google growing to 21.7 percent market
share. Google will top $4.76 billion in display ad sales, compared with $3.75
billion at Facebook. Yahoo, once the dominant display ad purveyor in the world,
will slip to $1.64 billion in sales.
Why will Google pull past Facebook?
eMarketer claimed stronger-than-expected performance from the company's mobile
display business, YouTube and Google's DoubleClick ad network.
eMarketer principal analyst David
Hallerman said Google has also been able to leverage its relationship with
existing search advertisers for its display ad business.
"Google's strategy to diversify ad
revenues and move in on the display market mean that the two Web giants will
battle for the top spot in U.S. display ad revenues over the next few
years," noted eMarketer.
While the balance of power will
continue to consolidate with Google and Facebook, the next three players in the
top five display ad leaderboard will watch their shares shrink.
Yahoo (NASDAQ:YHOO), which commanded
18.4 percent in display ad sales in 2008, slipped to 10.8 percent in 2011 on
revenue of $1.64 billion. The company, which is trying to halt its slide under
new CEO Scott Thompson, is expected to decline to 9.1 percent in 2012, 8.1 percent
in 2013 and 7.5 percent in 2014.
At No. 4, Microsoft saw share of
display revenue fall to 4.4 percent from 4.5 percent in 2011. AOL's share will
fall to 4 percent in 2012 from 4.3 percent in 2011.