Thursday, September 20, 2012

Google Inc (NASDAQ:GOOG) to dominate the arena of Display ads this year, Facebook Inc(NASDAQ:FB) Lags

According to eMarketer, one of the most important institutions for revenue forecasts, Google Inc(NASDAQ:GOOG) will topple Facebook Inc(NASDAQ:FB) from the top position of display ads this year. According to the research firm, Google is all set out to branch out and increase its revenue from advertisements, and by dominating the arena of display ads, it will lead as the organization with three kinds of advertising. Namely, Search, mobile, and display.

Before Facebook, Yahoo was the dominant company with the most amount of revenue collection through display advertisements. However, Google has made substantial investments in the sector of Display ads and has shifted its focus from the search ads, which had been its most prominent source of income up until now. Apart from launching the DoubleClick Ad Exchange, which is responsible for selling advertisements all over the web, the company has also taken over a number of other companies to develop its resources for display ads. The fact that Google has maintained long-running relationships with advertisers will also work to the company’s benefit.

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Facebook’s ads, which mostly consist of images and videos, will reap less revenue this year, predicted eMarketer. Although the social-networking sight had taken over the topmost position from yahoo, it will have to give it up to Google. According to the research firm, Google will draw 15.4% of this year’s display ads, thereby generating 2.31 billion in dollars, which will lead to a 38.5% increase from 2011.

Google’s impressive performance as well as the success of display ads over YouTube and the earnest performance by DoubleClick has resulted in Google’s growth in the area of display ads, which is a much needed source of revenue for them.

Facebook, this year, will be drawing 14.4% of the display ads, thereby getting about 2.16 billion dollars. The company has still managed to increase its performance from last year by 24.4%.

The display market on the whole, is one the rise, says eMarketer. The sector is predicted to grow by 21.5% in the near future, despite advertisers willing to pay less for the ads.

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