Digital advertisement business is growing so big that every big name in the tech sector is trying to grab a big chunk of those advertisement revenues. Few years back, tech companies like Google Inc (NASDAQ:GOOGL) and Yahoo! Inc. (NASDAQ:YHOO) made a lot of digital advertisement revenues through its search engine platform. But the recent push for advertisement revenues from social media platforms like Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) means that Google Inc (NASDAQ:GOOGL) and Yahoo! Inc. (NASDAQ:YHOO) had to sacrifice some of their ad dollars. ‘TheStreet’ article shared the latest estimates from ‘eMarketers’, the digital analytics firm.
According to ‘TheStreet’ article, the ‘eMarketers’ estimate that Facebook Inc (NASDAQ:FB) will have approximately 25% of digital ad market in 2015 and they will have 26.9% market share by 2017. They also estimate that the Google Inc (NASDAQ:GOOGL)’s market share will be around 13% in 2015 and will drop to around 11.1% by 2017. Does this mean 1.9% market share lost by Google Inc (NASDAQ:GOOGL) will be grabbed by Facebook Inc (NASDAQ:FB)?
Similar story exists with Yahoo! Inc. (NASDAQ:YHOO) as well, where the firm estimated the search engines ad market share to be around 4.6% for 2015 and they expect Yahoo! Inc. (NASDAQ:YHOO)’s market share to go down to 3.5% by 2017. On the other hand, the firm estimates Twitter Inc (NYSE:TWTR)’s ad market share to go up from 5% in 2015 to 6.8% by 2017.
“Many brand marketers are moving direct response ad dollars from search to display, and social networks are the main beneficiary of this trend. Because consumers share personal information and interests openly on social networks, brands are shifting budgets to reach them there, especially as sites like Facebook and Twitter become more sophisticated in collecting consumer data for more effective ad targeting,” ‘TheStreet’ article quoted ‘eMarketer’ Senior Forecasting analyst, Martin Utreras’s comments.
‘eMarketer’ also estimated that for the first time the mobile based ad revenues will surpass the desktop based ad revenues, which clearly shows the reason behind more market share for social media platforms.
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