Facebook Will Surge Past Yahoo To Lead The Display Ads Market

2011 will soon be a landmark year for Facebook as it is on its way to take over the spot as the number 1 ad-selling company in the US, a spot currently held by Yahoo. The net revenues are expected to grow from 80.9% to $2.19Billion, which is in fact a slower growth rate as compared to the ones the social networking giant presented in 2009 and 2010. Studies show that the growth rate is expected is to slip down to 31.3% in the following year. This large slice of the online display advertising space will provide Facebook with 17.7% of the market share. In the previous year Facebook had only 12.2% of the market share.

These numbers clearly indicate the position that Facebook holds in the market. The Internet giant has definitely had a huge impact in the Social networking space and is on its way to releasing an IPO in the next few months. These figures not only boost Facebook’s IPO prospects, they also show us that social media has become a huge advertising vehicle and is raking in the dollars. The reasons are there for all of us to see. As the audience on social media grows rapidly, businesses realize the value of the medium in order to reach a large group of people.

Google is making attempts to improve its online display advertising in order to get a slice of these huge profits. Google currently gets its revenues from text-ads that appear along with its search results. However, they are now developing new methods that will improve the profits and visibility of the ads. Google recently acquired the online display advertising firm, AdMeld, and is expecting much better growth in the following years.

However tables can turn as Google’s ad space is more lucrative to brands as it enables them to reach out to consumers based on their search query. Only time will tell exactly who will be the indisputable leader in the online display advertising space.

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