Facebook ranks first in display ads
Facebook has become an online advertising magnet, capturing the greatest number of display ads of any Internet publishing site in the third quarter, according to ComScore.
In the third quarter, Facebook grabbed 23 percent of all Internet display ads, or 297 billion ad impressions, which was more than the total display ads on Yahoo, Microsoft, Fox and Google sites combined. But that doesn’t mean Facebook made the most money from display ads, according to the ComScore report.
Facebook ads are generally cheaper than display ads sold on traditional Web portals like Yahoo, according to Evercore Partners analyst Ken Sena in a report by Reuters. One industry source said Yahoo is known to make the most from online display ads.
The effective CPM (cost per thousand impressions) for Facebook's U.S. display ads is roughly $1, compared with the $3 CPM for display ads on Yahoo's family of Web sites in the United States, Sena said.
The growth in advertising shows the value of Facebook’s social network to advertisers who want to tailor ads to users who are constantly feeding new information about themselves to the site. Facebook doesn’t share personally identifiable information about their users, it says. And lawmakers have introduced legislation that could curb an advertiser’s ability to serve up ads based on Internet user activity. (Disclosure: Washington Post Co. Chairman Donald E. Graham is a member of Facebook's board.)
Overall, the online advertising display market is up 22 percent compared with a year ago.
Jeff Hackett, ComScore’s senior vice president, said in a release that the growth comes from the ability to target ads, or “buy specific audiences,” and that the site has improved the creativity and formatting of the ads.
Top advertisers – cellphone providers AT&T and Verizon -- bought a combined 35 billion ads. Scott Trade bought about 14.9 billion ads, and cable industry buster Netflix bought 9.5 billion ads in the quarter.
| November 9, 2010; 2:01 PM ET
Categories: FTC, Facebook, Google, Privacy
Save & Share: Previous: Battles heat for the future of Internet television
Next: Ask.com cuts engineers, closes office in years-struggle against Google
Posted by: jjtwo | November 9, 2010 3:45 PM | Report abuse
Posted by: crozetproject | November 9, 2010 8:28 PM | Report abuse
Posted by: Nymous | November 9, 2010 8:39 PM | Report abuse
Posted by: goodlucky88 | November 9, 2010 9:12 PM | Report abuse
Posted by: tgoodrich | November 10, 2010 5:52 PM | Report abuse
Posted by: rg019571 | November 14, 2010 6:18 PM | Report abuse