Thu 13th of May 2010, filed under PPC
Data suggests Facebook is a worthy adversary to Yahoo
In new data from market research company comScore, Facebook has been shown to edge past competitors to become the largest deliverer of banner ads to its users in the U.S.A., delivering 176.3 billion banner ads to Yaho?s 31.6 billion and Microsof?s 60.2 billion. The data, taken from the first quarter of 2010, demonstrates the social networking giant overtaking Yahoo in ad sales for the first time.
Because the data only covers three months, it still remains to be seen whether Facebook will maintain the high sales level and stay ahead of rivals. Figures from Nielson, another market research company, show Facebook remaining a close second to Yahoo when it comes to the banner ad market share with Yahoo holding 34% of the market and Faceboo?s share at 20%. This does, however, show a marked increase from just two per cent in 2009 and so it has been suggested that comScor?s data shows a continuation of the exponential growth Facebook has experienced since the previous year.
A number of reasons have been suggested for Faceboo?s gain on competitors, with some speculating that the latest page design allows the social networking site to fit in more ads. With the majority of social media traffic recently found to be going to Facebook, however, it could simply be that the sit?s popularity and volume has played a large part in its advertising success.
No rival in revenue
While Facebook slowly catches up with its competition in banner ad sales, it has yet to reach the level of income demonstrated by Yahoo. The Internet corporation made just over £4 billion in 2009 while Facebook has projected a revenue of just under £7 million in 2010. Much of Yaho?s revenue is generated through advertising, however, and so Faceboo?s recent success in the market could lead to a change in their projection.
The rise in popularity of social networking sites such as Facebook could give the online-marketing industry the boost that it needs after it suffered during the recession. Research has already demonstrated that there has been a strong recovery in the market so far and it is possible that the wealth of advertising opportunities offered by Facebook will only serve to improve the situation further.
Posted by Carli Harris