Like The Herald Business Journal on Facebook!
The Herald of Everett, Washington
Heraldnet.com

The top local business stories in your email

Contact Us:

Josh O'Connor
Publisher
Phone: 425-339-3007
joconnor@heraldnet.com

Jody Knoblich
General Sales Manager
Phone: 425-339-3445
Fax: 425-339-3049
jknoblich@heraldnet.com

Jim Davis
Editor
Phone: 425-339-3097
jdavis@heraldnet.com

Site address:
1800 41st Street, S-300,
Everett, WA 98203

Mailing address:
P.O. Box 930
Everett, WA 98206

HBJ RSS feeds

Google predicted to pass Facebook in display ads

SHARE: facebook Twitter icon Linkedin icon Google+ icon Email icon |  PRINTER-FRIENDLY  |  COMMENTS
By Barbara Ortutay
Associated Press
Published:
NEW YORK -- Google is expected to surpass Facebook in display advertising revenue this year, beating all other competitors with a 15.4 percent share of the U.S. market, according to a closely followed research firm.
EMarketer said Thursday that it expects Google Inc. to generate $2.31 billion in revenue from online display ads -- the graphical advertisements people see on websites. Display ads are more lucrative than the text-based advertisements that appear next to search results and account for the bulk of Google's revenue.
The New York-based research firm predicts Facebook Inc. will hold 14.4 percent of the market this year with $2.16 billion in U.S. revenue.
In February, eMarketer predicted Facebook would stay ahead of Google. The social networking company had surpassed Google a year earlier. But Facebook's ad revenue has fallen short of the expectations it set in February, just months before its initial public offering.
Google, eMarketer said, is helped by strength in its advertising network, video ads on YouTube and AdMob, the mobile advertising service it bought in 2010. Facebook began showing mobile ads to users only as recent as this year.
In all, eMarketer expects the display advertisement market to grow 21.5 percent this year to nearly $15 billion in the U.S., helped by both Facebook and Google. By 2014, the two rivals are expected hold as much as 37 percent of the market, making it difficult for smaller players.
In 2011, Facebook had a 14.1 percent share of the $12.4 billion U.S. display advertising market according to eMarketer, above Google's 13.5 percent. A year earlier, though, Yahoo Inc. held the lead with 14 percent of the market. By 2014, eMarketer expects Yahoo's share to be half that. In the coming years, market share among former online powerhouses such as Yahoo, AOL and Microsoft is likely to decrease as Google and Facebook grow, according to eMarketer.
Facebook's stock slid 39 cents to $22.90 in morning trading. Google dropped $3.68 to $723.82.

MORE HBJ HEADLINES

CALENDAR

Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus

Market roundup