Twitter to Overtake Yahoo on Digital Display Ad Revenues

Tim Maytom

yahoo display ad screenshotWhile Yahoo has been mounting a considerable comeback over the last few years, it's digital advertising offering is still relatively weak, and has taken another blow with the news that it is likely to be overtaken by Twitter in terms of total digital display ad revenue in the US this year.

The latest forecast by eMarketer predicts Twitter's ad revenue will rise 62.1 per cent year on year, reaching $1.34bn (£904m) this year, while Yahoo, while it will finally reverse the decreases it has seen for the past six years, will only grow by one per cent to $1.24bn.

Facebook continues to dominate display ad revenue, with 25.2 per cent of the total market at $6.82bn. Google comes in at second, revenues growing by 15.1 per cent year-on-year to $3.52bn, but share of total revenue actually decreasing from 13.7 per cent to 13 per cent as Twitter and Facebook continue to eat into its market.

Looking into the future, the report predicts that while Yahoo will continue to see revenues grow for the next three years, it will continue to fall behind Twitter in terms of both display ad revenue and percentage of total market revenue brought it, with Twitter growing to $2.54bn by 2017, while Yahoo holds onto fourth place with $1.19bn

The fall into fourth place is likely to perpetuate Yahoo's woes, signalling to marketers that it no longer has the scale to support their display campaigns, and causing more and more to switch to Facebook, Google or Twitter. Despite this, Yahoo's switch to a mobile-first strategy does seem to be working for the company, largely due to revenues brought in through its search ads.