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Facebook to Top Yahoo! in US Display Market, As Google Looms

AOL continues display decline

NEW YORK, NY (March 1, 2011)—Facebook will pass Yahoo! as the leader in the US online display advertising market this year, according to new estimates by eMarketer.

The social network’s share of the $10.1 billion US display ad market will grow to 21.6% of overall revenues in 2011, up from a 13.6% share in 2010 and a 7.3% share in 2009.

Display revenues at Yahoo! are expected to grow 16% to $1.65 billion in 2011, after the company saw 13.1% growth in display in 2010. Yahoo!’s share of overall display revenues is expected to increase to 16.4% this year, after three straight years of losing market share. However, the gains will not be enough to avert the rapid growth of Facebook, whose share is expected to top 23.8% in 2012.

“What’s striking is how even as Yahoo!’s US display ad revenues will deliver double-digit gains each year from 2010 through 2012, not only will display revenues at Facebook surpass Yahoo! this year, Google’s revenues will exceed Yahoo! next year,” said David Hallerman, principal analyst at eMarketer. “What that leapfrogging trend confirms is the great and growing demand among brand marketers for online display ad placements.”

Google’s role in the US display market continues to grow stronger. eMarketer estimates the company will bring in $1.28 billion in US online display ad revenues in 2011, up 49.2% from $855 million in display revenues in 2010. This will put Google share of overall US display revenues to 12.6% in 2011, up from 9.6% in 2010 and 3.6% in 2009.

Display revenues at AOL will continue to fall, eMarketer estimates. The company is expected to earn just $443 million in US online display revenues in 2011, down 6.3% from last year. However, growth rates for AOL’s display business are expected to be positive in 2012, after four straight years of decline.

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Posted on March 1, 2011.