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Facebook Strengthens Foothold as Display Ad Leader



Nearly a quarter of all online display ads in the US were served via Facebook, a recent comScore study found.

With a 23% share of all display ad impressions in the third quarter this year, Facebook more than doubled the second-ranked company, Yahoo!, which had a 11% slice of the pie. Microsoft sites ranked third (5%), Fox Media (3.8%), and Google sites (2.7%).

One of the reasons for Facebook’s dominance is the fact that it discounts the display ads sold. Evercore Partners analyst Ken Sena told Reuters that the effective CPM (cost per thousand impressions) for Facebook’s US display ads is about US$1 while a similar ad on Yahoo! would have a US$3 CPM.

Facebook is also capturing—stealing?—a lot more of its users’ time than it did a year ago. In the third quarter this year, users are spending an average of five hours per month on the social networking site, an increase over the three hours per month figure in 2009.

Overall, the online ad market continues to show growth. According to comScore figures, the third quarter this year experienced a 22% growth in display ads compared to the same period last year.

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