At the top end, in the advertising sweepstakes, musical chairs are in progress. Till last year Internet portal Yahoo! Inc.(NASDAQ:YHOO) was the leader in display ads earnings. Then Facebook Inc (NASDAQ:FB) came and took over that position.
This year it’s Google Inc (NASDAQ:GOOG) which has claimed the top spot, becoming the undisputed market leader in digital advertising with its dominance in search, mobile and display.
Digital market research firm eMarketer has forecast numbers for this year that presages an imminent shake-up in the industry.
According to eMarketer Google will collect 15.4 percent of display ad dollars this year, or $2.31 billion, up 38.5 percent from last year.
Facebook will earn 14.4 percent, or $2.16 billion, up 24.4 percent.
Yahoo will earn 9.3 percent of display ad dollars, Microsoft 4.5 percent and AOL 4.3 percent, according to forecasts.
This represents a substantial fall for Yahoo, which had maintained its dominance for a number of years. It also shows that Google has been working hard and not taking its leadership for granted.
It is common knowledge in the Street that Facebook has been finding it difficult to attract advertisers and marketers as the sustenance of its business model and its ability to monetise its vast subscriber base has come under intense scrutiny, especially after it reported its first quarterly results after going public in May.
The economic recession has forced many companies, including big brands, to cut down on costly digital ads. eMarketer has predicted that this year the display ad market will rise by 21.5 percent, slower than expected.
Digital platforms have been forced to cut their rates for banner ads on sites that usually command a premium.
The figures also vindicate the enormous resources that Google has been deploying into its display ads business.