Facebook Display Ad Revenues: $2.2 Billion in 2011

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According to eMarketer, Facebook’s online display ad revenue in the U.S. will surge once again in 2011 and reach $2.2 billion, making it the No. 1 display ad-selling company in the nation.

Facebook’s online display ad revenue grew 164.1 percent in 2009, and 117.8 percent in 2010. In 2011, its display ad revenue is expected to grow by 80.9 percent. This growth is expected to slow down to 31.3 percent in 2012.

Google’s display ad revenue grew 91.0 percent in 2009, and 140.5 percent in 2010. It’s expected to grow this revenue by 34.4 percent in 2011 and 58.3 percent in 2012. Google’s recent acquisition of Admeld “is just the latest indicator of the search company’s increased focus on the display market,” according to eMarketer

Microsoft’s display ad revenue declined 7.5 percent in 2009, rose 37.9 percent in 2010, and is expected to rise 18.7 percent in 2011.

Yahoo’s display ad revenue declined 10.3 percent in 2009, rose 13.1 percent in 2010 and is expected to increase 13.6 percent this year.

AOL’s display ad revenue declined 11.9 percent in 2009, 8.0 percent in 2010, but is expected to increase 10.5 percent in 2011.

Overall, the top five U.S. online display advertisers are expected to see ad revenue grow by 36.0 percent in 2011, and 28.9 percent in 2012.

“Facebook’s supreme popularity — both in terms of numbers of people and amount of time they spend there — creates a plethora of display ad impressions, mainly for its unique form of banners,” said David Hallerman, eMarketer principal analyst. This popularity is also pushing up what advertisers will pay for the social network’s display ads.

eMarketer notes that its estimate for Facebook is on the “conservative side, especially for 2012, and may possibly be adjusted upward when eMarketer revises its social network ad revenue estimates in August 2011.”

Facebook is expected to account for 17.7 percent of net U.S. online display ad revenues in 2011, pushing it past Yahoo, which is expected to stand at 13.1 percent this year.

The top five display ad-selling companies will account for 49.3 percent of total display ad revenues in 2011, according to eMarketer. In total, the Internet is expected to generate $12.3 billion in online display ad revenues this year.

Display advertising is a hot area of the Internet once again, with big investments being made in the space.

Sources:

http://www.emarketer.com/Article.aspx?R=1008449

http://gigaom.com/2011/06/20/display-ad-revival-tellapart/

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