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IDC: Google Overtakes Yahoo In Display Ads For First Quarter Ever
According to a new report from research firm IDC, Google’s net U.S. display advertising revenue share grew to 14.7% in the first quarter of this year, from 13.3% in the fourth quarter. Meanwhile, Yahoo!’s declined from 13.6% to 12.3%. Microsoft declined to a 6.5% market share in Q1 and Facebook rose in prominence with 8.8% of the market.
The figures are interesting as we watch Google expand the relationships it has established in search to a separate category. IDC’s Karsten Weide, who authored the report, attributes the growth to Google converting small and medium-sized businesses (SMBs) from search to display. The report noted that display’s share is growing (to 33%) while search’s share has declined from 53.4% two years ago to 48.7% in the first quarter of this year. Search ads commanded more overall revenue, though ($3.9 billion), as compared to display ($2.7 billion).
In the search business, Google’s net U.S. market share rose to 59.6% in the first quarter, up slightly from 4Q. Microsoft stayed in second place with 7.9%, up .9% from the fourth quarter, while Yahoo dropped to 7%, from 8% in the previous quarter. Yahoo’s search ad network revenue is continuing to decline, according to the report, dropping from $248 million in Q3 of 2010 to only $24 million in Q1 of 2011.
Mobile online advertising continued to boom in the U.S. in the first quarter, coming in at $419.4 million, as compared to just $293 million in the fourth quarter, dramatically confounding the usual Q4/Q1 Boom/Bust cycle and confirming the influence of devices like the iPad, iPhone, and Android OS handsets.