According to a research publication by EMarketer Inc., Google’s display-advertising business is growing in leaps and bounds and is expected to surpass that of Facebook Inc. by 2013.
Facebook inched above Yahoo! to become the leading display ad-selling internet company in the US last year, and is expected to continue leading the market in 2012 with a revenue of $2.58 billion. Owing to its financial crisis, Yahoo! is loosing its place in the US online ad sales market and its market shares are expected to slide to 7.4% in 2012 from 9.5% in 2011.
Currently at number 2, Google is expected to maintain its position in US display ad market this year with revenue of $2.54 billion, however eMarketer predicts that Google’s display ad revenue in the US market will increase to $3.68 billion in 2013 (19.8% hold of the market share) leaving behind Facebook with a revenue of $3.29 billion (17.7% of the market share).
Google owes its display-ad growth and revenue primarily to the growing use of mobile phone and their YouTube video service, and with its existing tie ups with online search advertisers. With all these online ad businesses, Google has a strong hold over its market shares in the overall US online ad market that is projected to increase to 44.9% in 2012 from 41% last year. This is mainly thanks to the internet giant’s strong mobile, display and search revenue growth.
Although Facebook and Google are both relatively new comers to the display-ad market, these two names have become the frontrunners of the industry and are slowly pushing aside their established rivals. While Facebook fastened its hold in the display-ad market by integrating small ads into its social networking site, Google on the other hand entered the market by playing host to a variety of graphical advertising on websites, mobile phones and YouTube clips.
As eMarketer said in a statement:
Both companies are pulling away from other contenders in the display category. Combined, Google and Facebook’s display ad revenues will account for 33.3% of total display ad spending in 2012.