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Google, Not Facebook, Poised to Gain Display Advertising Crown
Google, Not Facebook, Poised to Gain Display Advertising Crown

By Jennifer LeClaire
September 20, 2012 11:19AM

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"Combined, Google and Facebook will represent just below 30 percent of total display ad revenues by the end of 2012," said eMarketer. "This is expected to climb to 37 percent in 2014 as [Google and Facebook] shut smaller platforms out of the market -- despite a fragmented display marketplace, especially among mobile ad publishers and networks."
 



In the war for display advertising dollars, Google is poised to become the undisputed leader. According to a new report from eMarketer, Google will earn more U.S. display advertising revenues than any of its competition in 2012.

Specifically, Google will end the year with a 15.4 percent market share in display ads, eMarketer's new estimates indicate. And that gives Google dominance in all three online advertising markets: search, mobile and display.

EMarketer's numbers predict Google will take home $2.31 billion in U.S. display ad revenues in 2012. That's up a very healthy 38.5 percent from the $1.67 billion it posted in 2011. By comparison, Facebook will bring home $2.16 billion, up 24.4 percent from $1.73 billion in 2011.

Some of the Google and Facebook gains come at Yahoo's expense. EMarketer said the perennial display advertising leader is still losing market share. Yahoo will wind up with 9.3 percent of the market in 2012. AOL and Microsoft, meanwhile, will grab less than 5 percent each, according to eMarketer's estimates.

Google's Three Prongs

Greg Sterling, principal analyst at Sterling Market Intelligence, said that beyond its core search marketing empire, Google arguably has more display assets than anybody else on the PC and in mobile.

"YouTube, for example, has become a huge asset in Google's display arsenal -- after being criticized for years for not making enough money for the company. Google's network is also much more extensive than any other rival, although Facebook will be expanding and developing its own network over time," Sterling told us.

"And in mobile Google has tremendous reach and is the mobile advertising leader. Google simply has more reach and a more developed network than Facebook. Over time that could change somewhat as Facebook tries to accelerate revenue growth to appease investors."

The Battle Continues

The U.S. display ad market in general is growing. EMarketer pegs it to grow 21.5 percent to $14.98 billion in 2012, up from $12.33 billion in 2011. But that growth is largely attributed to the growth of Google's and Facebook's platforms, as well as more banner ad inventory and more spending on video ads.

"There are several factors underpinning Google's ascent to market leader, including the continued strength of its ad network, video advertising on YouTube and mobile display advertising on AdMob," eMarketer said.

"However, the company's newfound lead also comes as Facebook ad revenues have fallen short of expectations set in February, when eMarketer predicted U.S. display revenues at Google would trail Facebook just slightly this year. EMarketer cut its ad forecast for Facebook earlier this month."

Still, eMarketer reported, it's important to keep in mind that display growth at both companies is strong -- and far stronger than at other major display sellers.

"Combined, Google and Facebook will represent just below 30 percent of total display ad revenues by the end of 2012," the firm said. "This is expected to climb to 37 percent in 2014 as the two companies shut smaller platforms out of the market -- despite a fragmented display marketplace, especially among mobile ad publishers and networks."
 

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OscarD:

Posted: 2012-09-23 @ 11:45am PT
Think about the projection made at the end of this article - Google and Facebook will represent just below 30 percent of total display ad revenues by the end of 2012. I don't know why so many within the mobile ad community look at social networks with more enthusiasm than mobile ad networks. There is a HUGE difference between the two - namely, that mobile ad networks can actually help you make a lot of money.I am a strong believer that platforms like Facebook and Twitter are getting far too much praise and attention for what they can do for mobile advertisers. Ad networks - not social networks - remain the place for serious advertisers/developers to go. Airpush's new SDK alone ( http://bit.ly/NyV3FJ ) is doing more for mobile advertising's future than anything Facebook is doing. AND I hope the importance of targeted, highly relevant messaging is something that companies large and small come to embrace more aggressively in the future. Case in point - http://www.airpush.com/blog/redesigning-messaging-relevance-how-we-grew-to-2/.



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