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Facebook Surpasses Yahoo as Top U.S. Display-Ad Seller in Study

Facebook Inc., the world’s most popular social-networking service, is set to overtake search engine Yahoo! Inc. this year to seize the biggest share of the U.S. online display advertising market, a study found.

Palo Alto, California-based Facebook will reap $2.19 billion in display ads sales this year, for a 17.7 percent share of the U.S. market, topping Yahoo’s 13.1 percent, according to a report today from Internet research firm EMarketer Inc.

Facebook, with more than half a billion users, has lured advertisers such as Coca-Cola Co., JPMorgan Chase & Co. and Adidas AG. The social-network’s display ad revenue more than doubled in each of the past two years, and will surge 81 percent in 2011, EMarketer estimated.

“Facebook’s supreme popularity -- both in terms of numbers of people and amount of time they spend there -- creates a plethora of display ad impressions, mainly for its unique form of banners,” said David Hallerman, an EMarketer analyst, in the report. “That popularity is also boosting what advertisers will pay for its display ads.”

Google Inc. (GOOG) is projected to increase its display ad sales by 34 percent this year, and capture 9.3 percent of the U.S. market, the report projected.

To contact the reporter on this story: Zachary Tracer in New York at ztracer1@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

Enlarge image Facebook Beats Yahoo as Top Display-Ad Seller

Facebook Beats Yahoo as Top Display-Ad Seller

Facebook Beats Yahoo as Top Display-Ad Seller

Andrew Harrer/Bloomberg

Facebook Inc., the world’s most popular social-networking service, is set to overtake Web portal Yahoo! Inc. this year to seize the biggest share of the U.S. online display-advertising market, a study found.

Facebook Inc., the world’s most popular social-networking service, is set to overtake Web portal Yahoo! Inc. this year to seize the biggest share of the U.S. online display-advertising market, a study found. Photographer: Andrew Harrer/Bloomberg

Enlarge image Facebook Page

Facebook Page

Facebook Page

Karen Bleier/AFP/Getty Images

The home page for Facebook founder Mark Zuckerman as seen on October 18, 2010.

The home page for Facebook founder Mark Zuckerman as seen on October 18, 2010. Photographer: Karen Bleier/AFP/Getty Images

Enlarge image Facebook Surpasses Yahoo as Top Seller

Facebook Surpasses Yahoo as Top Seller

Facebook Surpasses Yahoo as Top Seller

Daniel Acker/Bloomberg

Facebook has lured advertisers such as Coca-Cola, JPMorgan Chase and Adidas.

Facebook has lured advertisers such as Coca-Cola, JPMorgan Chase and Adidas. Photographer: Daniel Acker/Bloomberg

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