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Twitter Inc (TWTR) Ready to Take Down Yahoo! Inc. (YHOO) in the Race for Online Ad Superiority

Twitter Inc (NYSE:TWTR), a social media giant, is ready to take over Yahoo! Inc. (NASDAQ:YHOO) this year in a race of online display advertising in the United States, according to an independent market research company. A Wall Street Journal article reported on the news and discussed about Twitter Inc being set to take Yahoo! Inc.’s position in online display advertising this year.


According to a report by eMarketer, a market research firm, it is expected this year that Twitter Inc is going to claim 5% of the United States’ display advertising market, which is up from 3.6% from last year, bringing it to third position in the rankings. Twitter Inc’s rise in online display advertising will result in a decline for Yahoo! Inc., as it will drop to fourth position with 4.6% of the total this year, from 5.5% in 2014.

“They are starting to move into trying to catch ad revenue from a broader base,” said Martin Utreras, Senior Forecasting Analyst at eMarketer.

Twitter Inc (NYSE:TWTR) will still be behind Facebook Inc (NASDAQ:FB), which has 25.5% of the market share and Google Inc (NASDAQ:GOOGL) with 13%, but it will be able to get ahead of Yahoo! Inc. (NASDAQ:YHOO) which had remained the third-largest display ad seller over the past four years. Twitter Inc’s good progress in display ads indicates the efforts of its Chief Executive Officer Dick Costolo to show ads to more users.

According to Twitter Inc’s executives, the company has increased the number of advertisements being shown to users and it is also finding more ways to serve ads outside of Twitter through teaming up with third-party publishers. Social media companies are taking benefit from a recent growth in ‘app-install’ ads, for which marketers pay each time a person clicks to download a smartphone app.

Positions of the top online ad firms are shifting in the list because more marketing expenditure has been shifted to mobile devices because of an increase in their use by people. Twitter Inc (NYSE:TWTR) has left Yahoo! Inc. (NASDAQ:YHOO) behind in the move to mobile, as in the fourth quarter of last year, 88% of its $432 million in ad revenue came from mobile devices.

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