Long dominant as the online search advertising giant, Google is on track to become the dominant player in the online display advertising business too, according to estimates released late Wednesday by online stats masters eMarketer.
Google is poised to become No. 1 -- again. Long dominant as the online search advertising giant, Google is on track to become the dominant player in the online display advertising business too, according to estimates released late Wednesday by online stats masters eMarketer. Actually, according to the eMarketer report, Google will achieve digital marketplace triple play -- becoming Madison Avenue’s top supplier for three digital marketing channels: search, display and mobile.
Ad revenues for Google's Display Network for Q1 2012 forged well ahead of Facebook by $2.9 billion versus only $1.06 billion for Facebook.
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eMarketer's report says.
“Google now holds more share than any other company in each of the U.S. search, display and mobile advertising markets.”
eMarketer reports notes that the display milestone is based on Google overtaking previous No. 1 supplier Facebook, which only overtook long-standing display ad champ Yahoo last year.
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The leap-frogging is based on a projection that Google will take in $2.31 billion in U.S. display ad revenues this year, a 38.5% increase from 2011, and giving it a 15.4% share of the total display marketplace.
- Facebook - Will earn $2.16 billion in U.S. display ad revenues this year. And while that also is an impressive rate of growth -- jumping 24.4% over 2011 -- it’s not enough of a share gain to offset Google’s momentum. Facebook, however, picked up 0.3 points of market share to further distance itself from third-place Yahoo with a 14.4% share of the U.S. display ad marketplace.
- Yahoo - Will drop to 9.3% in 2012, down from 11.0% last year, and a dominant 14.0% of display ad budgets in 2010.
- Microsoft - Will retain its fourth-place position, dropping 0.4 points to a 4.5% share.
- AOL - Will remain No. 5, declining 0.7 points to 3.6% of the online display ad marketplace.
Google’s and Facebook’s ascendency comes amid a rapidly expanding online display ad marketplace, thanks in part to Facebook’s push. eMarketer estimates the total U.S. online display marketplace will be $14.98 billion this year, up 21.5% from $12.33 billion last year.
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Looking forward, eMarketer expects Google to continue to build share of display ad budgets, expanding to a 21.2% of display in two years, and increasing its lead over projected No. 2 Facebook’s estimated 15.5% share in 2014 by a wide margin.
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eMarketer said its estimates were “driven by the expansion of both Google and Facebook as advertising platforms; the continued health of banner spending due to expansion of inventory, aided by mobile growth; and increased spending growth on digital video advertising, especially YouTube.”
Despite that growth, eMarketer has actually reduced its projections downward slightly from its previous display forecast due to a “mix of lower prices for display advertising on ad networks combined with the reluctance of some major brands to make extra-large investments in digital display advertising.”
eMarketer noted.
“There are several factors underpinning Google's ascent to market lead, including the continued strength of its ad network, video advertising on YouTube and mobile display advertising on AdMob.”
COMMENTARY: Like I have been saying before, online advertising is a "zero-sum" game. The only way to increase online ad revenue market share is by stealing it from your competitors. It clearly appears that Google is taking back market share that it lost from Facebook in 2011. This proves once again that Google has a more stable, proven and sustainable revenue model than Facebook.
For its part, Facebook committed a huge blunder by not pivoting quickly to increase mobile advertising just when over half of its users were using digital devices to access Facebook. This was a huge strategic mistake that will cost Facebook dearly. In a blog post dated September 19, 2012, I commented on eMarketer's U.S. mobile advertising revenue estimates for the years 2012 through 2014, and although Facebook gain market share, it will lag way behind Google in mobile advertising.
eMarketer is so concerned about Facebook's mobile ad blunder, that it revised Facebook's ad revenues downward by nearly a billion. You can read about this in a blog post dated September 1, 2012.
Courtesy of an article dated September 20, 2012 appearing in MediaPost Publications Online Media Daily and an article dated September 20, 2012 appearing in Marketing Land
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