Facebook to Surpass Yahoo! in Display Ad Revenues This Year
More than one in five US display dollars will go to the social network
For the first time, the largest share of US display ad revenues will go to Facebook, eMarketer estimates. The social network’s 80.9% growth in display ad revenues, to $2.19 billion this year, will mean Facebook sees 21.6% of all US display ad dollars.
That will put it ahead of Yahoo!, where eMarketer estimates display revenues will be up 16%. Yahoo!’s market share will inch up to 16.4%, while display gains at Google push the site’s share of display spending to 12.6%. Meanwhile, AOL will drop from 5.3% of display ad revenues in 2010 to 4.4% this year.
“Yahoo!’s US display ad revenues will increase by double digits each year from 2010 through 2012. Despite that, not only will Facebook’s display revenues surpass Yahoo!’s this year, Google’s revenues will exceed Yahoo!’s next year,” said David Hallerman, principal analyst at eMarketer. “What that leapfrogging trend confirms is the strong demand among brand marketers for online display ad placements.”
In the search market, Google will solidify its position as the top site with an increase in market share of nearly 4 percentage points, to 75.2%. eMarketer expects Microsoft, where search revenues will be up 16.4% in 2011, to increase its market share slightly for the next two years, while search revenues at Yahoo! will continue a slow decline, dropping to $1.1 billion this year from $1.28 billion in 2010.
U.S. Smartphone Penetration up 60% See the chart, we
U.S. Smartphone Penetration Up 60 Percent in Q4 2010
The number of smartphone users in the U.S. rose 60 percent in the three months ending December 2010 versus the same period in 2009, according to data from comScore.
The measurement firm estimates 63.2 million people in the U.S. owned a smartphone device during that time, compared with around 38.7 million in the final three months of 2009.
Meanwhile, the mobile operating system space is increasingly becoming a two horse race, with Apple’s iOS and Google’s Android proving the only two platforms to achieve growth in Q4, on a quarter-over-quarter basis.
Market leader RIM experienced substantial declines in that period, losing market share of 5.7 percentage points, while Google enjoyed growth of 7.3 percentage points – overtaking Apple and placing its overall market share at almost 29 percent. Despite the launch of its Windows Phone 7 operating system in mid-October, Microsoft lost 1.5 percentage points of market share, while Palm also suffered a 0.5 percentage point loss.