Google Overtakes Yahoo in Display Advertising [STATS]


Google, which long ago passed Yahoo in search advertising, now has overtaken the company in display ads as well, according to IDC.

Google claimed the number-one spot in U.S. display advertising in the first quarter, with 14.7% of the market ($396 million), up from 13.3% in Q4 2010. Yahoos hold on the market declined from 13.6% to 12.3%, or $330 million, in that same period.

Facebook, meanwhile, had 8.8% of the display market, or $238 million. Karsten Weide, IDC vice president and the author of the report, says he expects Facebooks share to overtake Yahoos in the third or fourth quarter.

Weide says the latest nu! mbers re flect Googles strength rather than Yahoos weakness. They have a huge search network, Weide says, And anything you offer based on that is likely to work well.

Google got into the display ad arena in earnest in September 2009, after its acquisition of DoubleClick. Since then, the business has grown rapidly and is now estimated to be worth $2.5 billion a year, including YouTube.

Other findings of the IDC report:

  • Global online ad spending grew 14.3% to $18.2 billion in the first quarter.
  • U.S. spending was up 14.2% to $8.1 billion.
  • For the ninth quarter in a row, display is growing faster than search advertising. Displays share is now at 33.3% vs. 29% two years ago.
  • Googles share of search advertising rose to 59.6% (vs. 59.1% in Q4 2010). Microsofts share was 7.9%. Yahoos was 7%.

Just like the IABs first-quarter online advertising estimates, released on Thursday, IDCs reports shows quarterly ad revenues at a new record.

Image courtesy of Flickr, brionv

More About: advertising, facebook, Google, idc, microsoft, Yahoo

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