Facebook display ad strength 'encourages marketers to diversify' 

Wednesday, June 22 2011 by Craig Nicholson

Facebook is expected to overtake Yahoo as the biggest internet display advertising performer for 2011, but many internet consultants will still be making website promotions on both platforms.

EMarketer has forecast that Facebook's share of US online display advertising will grow to 17.7 per cent in 2011, while the search engine will make do with a share of just 13.1 per cent.

The analysis firm indicates that the social networking site's advertising platform has proved particularly attractive as a means of promoting websites and marketing campaigns.

However, the differences between providers is expected to see most internet consultants opting to balance their spending across both sites.

David Hallerman, eMarketer principal analyst, said: "Google is going after many of the same advertisers to some extent, and this is where one facet of the competition between them will heat up.

"However, with the vastly different advertising experience each company offers, many marketers will run display ads on both platforms."

Facebook's strength also lies in the growing popularity of social media as an advertising channel.

Firms are increasingly finding success on websites such as Facebook and Twitter. Recent research by Regus indicated that around half of businesses globally regularly use these sites to engage, connect and inform their existing customers.

There has also been a seven per cent increase in the number of businesses using social media to target new customers.

Growing numbers of business leaders now see these sites as a necessity for the success of their campaigns.

However, there is no indication that interest in search marketing is waning as a result.

Mr Hallerman explained that the display advertising industry is so strong that "a company like Yahoo! can increase revenues by a normally healthy rate yet still lose market share".

Living Streams "Improving clients' profitability through better use of the internet".

Source: http://www.emarketer.com/PressRelease.aspx?R=1008450