Facebook relies heavily on online display advertising for its revenue. Google is presently seeking to diversify its ad revenue portfolio and has its eyes set on a big slice of the online display advertising pie. This will result in the two online moguls fisting it out for the top revenue spot in U.S. online display advertising in the upcoming years.
Google or Facebook?
Expectations are that Google will come out at the top as soon as the year 2013. In 2011, Facebook won out over Google with a 14% U.S. share of online display advertising income, but Google was right on its heels with 13.8%. Experts predict that Facebook will remain dominant in the competition throughout 2012.
However, it is expected that Google's display ad share will rise as high as 20% by the year 2013, and even though it is anticipated Facebook's share will also continue to climb, it will do so more slowly which will cause it to shift from the top spot.
Google and Facebook are not the only players in the online display advertising game, though. There is Yahoo! And also AOL, but they have both had continued decline in their share percentages in the U.S. market, with Microsoft holding on to its small revenue pie portion.
Ad Market Consolidation
By the year 2014, display ad revenue will allocate 54.4% to five top contender websites, up by 7% from the figure in 2011 of 47.4%. These sites include:
1. Facebook - 14% in 2011, expected 16.8% in 2012
2. Google - 13.8% in 2011, expected 16.5% in 2012
3. Yahoo! - 10.8% in 2011, expected 9.1% in 2012
4. Microsoft - 4.5% in 2011, expected 4.4% in 2012
5. AOL - 4.3% in 2011, expected 4.0% in 2012
These percentages reflect a market share of total display ad revenues.
Both Google and Facebook hold the top spots for highest growth rates and for highest display ad revenues. Display revenue in the U.S. increased to almost 52% in 2011 for Facebook to reach a figure of $1.73 billion. That figure is expected to increase to $2.58 billion in 2012. Google follows close behind, snapping at Facebook's heels with a 2011 growth rate of 41.9% and 48.5% in 2012.
Experts predict that Facebook's growth will slow, placing their growth rate in much lower double digits by 2013-2014. Google on the other hand will retain a high growth rate which will ultimately place it as the top place holder in online display advertising revenue rankings.
How much of your budget will be spent on online branding through display advertising? What has been your experience of the value of this form of marketing?
About Alan Moore: Alan is an Internet Marketing Consultant with ReachLocal Baltimore. His mission is to help you increase your revenues and decrease unproductive advertising expenses through proven, online marketing strategies. He manages over $1.4 million in annual marketing budgets and has worked with local businesses, agencies and the US government. Give him a call at (877)655-3438 to schedule a free consultation.
Interested in exploring the debate further? Check out this article from http://www.emarketer.com/Article.aspx?R=1008859