Banner Ads: Google’s Next Thrust?

Posted by Sam Churchill on

According to a forecast released today by eMarketer, Google will pass fast-rising Facebook in display-ad revenues by next year, reaching $3.68 billion to Facebook’s $3.29 billion.

Net US display advertising revenues at Google reached $1.71 billion in 2011, just below the $1.73 billion Facebook earned the same year, according to eMarketer.

This year, US display revenue growth at both companies will be nearly identical—around 48% year over year—with Facebook expected to earn $2.58 billion in revenue, compared to Google at $2.54 billion, eMarketer estimates. Google is expected to surpass Facebook in 2013, when the company’s US display revenues grow 45.3% to $3.68 billion, eMarketer estimates. US display ad revenues at Facebook will grow 27.6% to $3.29 billion that year.

Together, Google and Facebook are expected to pull in a third of all display ad revenues this year, rising to nearly 38% next year.

Google already dominates 60% of the online ad business with text ads. Google now has its sights set on the remaining 40% of the industry with display ads. That would be the $25 billion worldwide market for display ads, the graphical and video banners familiar on virtually every commercial website.

Most of the ad dollars still get spent on television says Forbes. Buying ads of television is relatively easy compared to the dozens of competing online ad technology products for buying and placing ads.

Google announced today a revamped ad buying system at a private Future of Advertising event today hosted by its DoubleClick display-ad management unit. The idea is to make buying banner ads easier and more effective.

Global internet advertising expenditures will rise about 31.5% between 2011 and 2013, according to a July 2011 forecast from Zenith Optimedia. Internet ad spend is expected to total about $72.18 billion USD this year, and reach $94.97 billion in 2013. Total global ad spend, forecast at $465.72 billion for 2011, is expected to grow about 12% to about $519.86 billion in 2013.

Posted by Sam Churchill on Tuesday, June 5th, 2012 at 10:13 am .

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