Facebook is leaving Google and Yahoo! in the dust to become the top US display advertiser on the Web, according to an article today on eMarketer. The social network will gobble up the largest chunk of display ad revenues, projected to double revenues this year into 2012 with an 81% growth rate.
Boston-based Nanigans is one of a select few companies that has built an advertising platform on top of Facebook’s API. We tapped the company to hear their experience related to this growth, and what types of customers they are seeing leverage their pay-per-performance platform:
“Facebook’s increasing share of ad impressions in the US and internationally makes the platform impossible to ignore for advertisers wishing to increase their reach,” explained Nanigan’s VP Business Development Yahya Mokhtarzada. “We’ve seen new types of advertisers beyond those who traditionally spend on Facebook eager to launch campaigns as they find new ways to leverage the hyper-targeting and free messaging channels (earned media) unique to the platform.”
Facebook’s ad revenue growth the other top 5 display advertisers, with Google projected to grow its US display ad revenues by 34% this year (that’s down from 140% in 2010), Microsoft by 19%, Yahoo! by 14% and AOL by 11%.
Facebook will hold the largest share of these display ad revenues (an 18% share, up from 12% in 2010 and 7% in 2009), and will continue to eat up market share in 2012 holding over 19% of total display ad revenues in the US.
Factors critical to driving these eMarketer projections include Facebook’s growing user base (in numbers) alongside an increase in the amount of time spent on the social network. David Hallerman, a principal analyst at eMarketer shared in the article,
“Facebook’s supreme popularity—both in terms of numbers of people and amount of time they spend there—creates a plethora of display ad impressions, mainly for its unique form of banners. And that popularity is also boosting what advertisers will pay for its display ads.”
Looking to learn about Facebook advertising? Nanigans’ Mokhtarzada recently contributed a thought leadership article on BostInnovation as part of a series on disruptive ad tech. In it he deconstructs how Facebook advertising works, pointing to ways you can be certain to get the most out of it: Facebook Advertising: How to Maximize ROI.
Do you advertise on Facebook? Have you been happy with the results? Let us know in the comments!
