Facebook Top Ad Display Share

Social networking giant Facebook has proved to be as popular among advertisers as it is among millions of users.

Nearly one of every four graphical, online display ads viewed in the US in the third quarter was on Facebook's website, according to a new report by Web analytics firm comScore.

Facebook reigned with a 23.1 per cent share which translates to 297,046 billion ad displays out of the 1.3 trillion delivered to online Internet users in the United States during the third quarter of 2010.

The social networks display ad impressions was up sharply from 17.7 per cent in the second quarter and more than double the number two ranked company, Yahoo, which had 11 per cent share.

In stark contrast, search engine giant Google marked a mere 2.7 per cent, with 35,043 billion ad displays in Q3 2010.

In fact, Facebook's website racked-up more ad impressions in the third quarter than the next four companies combined, which includes Yahoo, Microsoft, News Corp's Fox and Interactive Media, according to comScore.

Analysts noted that Facebook ads sell at a significant discount to display ads sold on traditional web portals such as Yahoo.

Evercore Partners analyst Ken Sena's estimates, that the effective CPM (cost per thousand impressions) for Facebook's US display ads is roughly $1, compared with the $3 CPM for display ads on Yahoo's family of websites in the US.

But Sena notes that Facebook's ad rates are on the rise, as marketers make increasing use of the ability to target ads to Facebook users based on their interests and other information.

"It certainly is an issue for the portal sites," he said.

"While you still have the sort of traditional display players benefiting from strong growth trends in display (advertising), social is probably taking a disproportionate share of that growth.

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