Facebook Reigns Supreme in the Display Ad Market

According to new data from comScore, Facebook is dominating the U.S. display ad market. In Q3 2010, Facebook served 297 billion display ad impressions, which equates to 23% of the U.S. market for display ads. By way of comparison, its share was only 7% in the first quarter of 2009.

It’s interesting to note that even though Facebook serves up more display ads than any other company by far, it isn’t collecting a proportionate amount of ad dollars — the Wall Street Journal notes that it’s only securing 10% of display ad dollars. According to the WSJ, “Part of the reason for the gap between Facebook’s scale and the amount of money it makes from ads is that Facebook sells a good portion of its ads on a cost-per-click basis, where advertisers only pay if a consumer clicks on the ad. The more people that click, the more expensive the ad campaign will be.”

But it’s also true that advertisers are still trying to decide whether Facebook ads are worth the money, whether the platform is good for branding, and whether people are more likely to ignore ads they see there.

Facebook served up almost a quarter of the 1.3 trillion
online display ads in the third quarter, according to 
ComScore data. But marketers are trying to figure out
how to value the ads on Facebook.

Facebook may not be raking in the dollars today, but it’s positioning itself as a big future earner — it’s a good bet that ad dollars will more closely match ad impressions in the not-to-distant future.

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Careful, Google: Facebook Has Passed You in Time Spent on Site [Chart]

If Google isn’t already worried about Facebook, this should unnerve them.

According to the latest data from comScore, time spent on Facebook was greater than time spent on Google sites in the U.S. in August for the first time ever. In the meantime, Yahoo continues its downward slide.

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Facebook Becomes Most Popular U.S. Web Site

If you work for a business or own one, social media engagement is probably on your radar. The flow of marketing dollars toward the social Web continues unabated and is increasing exponentially. New data confirms that Facebook is a key platform that is changing the landscape of audience engagement and customer loyalty.

The site had a couple of traffic spikes during the holiday season that temporarily made it the largest site in the U.S., according to Hitwise. But for the week ending March 13th, the Web measurement firm reports, Facebook accounted for 7.07% of all U.S. Internet visits vs. Google’s 7.03%:

In early 2008, there were reports that traffic was plateauing, but that’s obviously not true anymore. The most recent surge seems to have begun shortly after Facebook introduced a new home page design in early February, and it accelerated after the introduction of Farmville in June — today the game has over 83 million active users.

Compared to the rise of social games on Facebook, there was little happening at Google to encourage traffic growth. Comscore still ranks Google ahead of Facebook — it’s the top site by reach (81% of the U.S. population). Facebook sits behind Google, Yahoo, and Microsoft at 53%, according to TechCrunch.

A recent study by Nielson Company showed that the average American spends 7 hours a month on the site:

And based on TechCrunch’s analysis of data from Gigya, 44% of social sharing on the Web is driven by Facebook:

Are you using Facebook as a marketing engagement tool? Please leave a comment and share your experience!

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Facebook Catching Up to Google and Yahoo as Your Home on the Web [Chart]

Facebook is bearing down on its rivals, threatening to become U.S. Internet users’ home on the Web.

Time spent on Facebook soared to 27.6 billion minutes in December, up from 17.8 billion minutes in October, according to data from comScore. (In December 2008, it was just 9.3 billion minutes.)

Google, where users spent 36 billion minutes in December, managed consistent slow growth in the second half of the year. Meanwhile, online rivals like Yahoo, Microsoft, and MySpace are all down.

It’s especially ugly for Yahoo.

  • Yahoo which fancies itself as your home on the Internet, has seen time spent on the site slowly decline, despite its big ad campaign.
  • Its uniques are flat, while Facebook’s are growing.
  • And, it’s not shown in this chart, but comScore says Facebook had more pages viewed in December than Yahoo for the first time ever — 44.9 billion for Facebook versus 38.8 billion for Yahoo.

Carol Bartz knows Facebook is coming. On Yahoo’s earnings call she said, “we are actually happy with the engagement we are seeing with us. We just can’t keep up with that [Facebook’s] kind of engagement.”

(Via Silicon Alley Insider, Jay Yarow & Kamelia Angelova)

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