Google Poised to Overtake Facebook in Display Ads

Google Inc.'s display-advertising business is growing faster than anticipated and is on track to surpass that of Facebook Inc. next year, according to research published Wednesday.

According to data from eMarketer, Facebook's US display-ad revenue should reach $2.58 billion this year, and is on track to reach $3.29 billion next year.

Google, according to eMarketer, should see $2.54 billion in US display-advertising revenue this year, and $3.68 billion next year.

Google's display-ad growth is coming primarily from mobile phone use and the YouTube video service, and benefits from the company's existing relationships with online search advertisers, according to eMarketer.

Yahoo Inc., the former US display-ad leader which was overtaken by Facebook last year, should see its display-ad revenue grow to $1.5 billion next year from $1.4 billion this year, according to the data.

Facebook is in the midst of rapid growth, as it moves toward an initial public offering.

The Menlo Park, Calif.-based company places display ads on web pages seen by its roughly 850 million users. Facebook has yet to start pulling in meaningful advertising revenue from its mobile phone users.

Google, which has built its fortunes around its dominant search-advertising business, has developed a display-ad business that includes mobile, YouTube and other properties.

The Mountain View, Calif.-based company said last month that its display-advertising unit was generating revenue at a rate of more than $5 billion annually.

A Facebook spokesman declined to comment. Representatives from Google and Yahoo did not immediately respond to requests for comment.

Looking beyond next year, eMarketer projects that Facebook's US display-ad revenue should reach $3.75 billion in 2014, compared to $4.76 billion for Google.

"Both companies are pulling away from other contenders in the display category," eMarketer said in a statement. "Combined, Google and Facebook's display ad revenues will account for 33.3 percent of total display ad spending in 2012."

Yahoo, which hired CEO Scott Thompson last month in a bid to help the company revamp its operations, should see modest growth in US display-ad revenue to $1.64 billion in 2014, eMarketer said.