Facebook continues to dominate display ad market


Facebook is expected to surpass 1.1 trillion display ad impressions by the end of 2011.

2011 First quarter reports show Facebook dominated almost one-third of the U.S. display ad market with 346.4 billion impressions, doubling its share compared to the same time last year.

Recent estimates released by comScore show Facebook now has a 31.2 percent share of  U.S. advertising display ad impressions. That’s up from 25.9 percent in the fourth and 15.6 percent from the first quarter of 2010.

Yahoo! is Facebook’s closest competitor with a 10.1 percent claim on the market. Google, which entered the display ad market after Yahoo! and Facebook, has 2.5 percent shared.

Because of its dominance in the display ad market, Facebook has raised its ad unit prices by 40 percent, fueling speculative debate over whether or not Facebook intends to trade on the stock exchange. Some analysts are predicting the IPO could be in the $100 billion range.

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