Twitter Inc To Overtake Yahoo! Inc. In Display Ad Revenue: eMarketer

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Twitter online display advertising is growing at a brisk pace, and very soon it will acquire the third position in the U.S. from Yahoo, according to eMarketer. According to the research firm, it is quite possible that from 3.6% last year, the share of the U.S. display ad market claimed by Twitter will go up to 5%.

Efforts paying off

Facebook is the market leader with a huge 25.5% share of the U.S. display ad market, followed by Google with a 13% share. The third position was held by Yahoo for the past four years, with 5.5% of the market in 2014. In the current year, its share is expected to decline to 4.6% meaning it will likely slip down to the fourth place.

“They are starting to move into trying to catch ad revenue from a broader base,” said Martin Utreras, senior forecasting analyst at eMarketer.

More revenue from ads is the result of the efforts from made by Twitter CEO Dick Costolo to make more users see the ads. Users are seeing a larger number of ads on the micro-blogging site, which has also partnered with third-party publishers for ads outside of Twitter.

Twitter already ahead of Yahoo in mobile ads

Marketing dollars have now shifted to mobile devices, and along with this, there is a change in the rankings secured by the top online ad companies. Twitter generated $432 million in ad revenue in the fourth-quarter of 2014, of which 88% was attributable to wireless devices. In the same period, Yahoo generated revenue worth $1.25 billion, and just 20% of it came from mobile ads. Twitter has clearly outpaced Yaho in moving to mobile, says a report from the Wall Street Journal.

App-install ads have seen impressive growth recently, benefiting companies like Twitter and Facebook. For such apps, the marketer is required to pay every time a user tries to download a smartphone app. A study from eMarketer, earlier this week suggested that such ads will earn $3 billion in the U.S. this year, accounting for  around 10% of all mobile ads.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at [email protected]

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