For the first time in several years, Yahoo saw their net US ad revenue grow in 2012, reaching $3.18 billion. eMarketer forecasts this upward swing to continue, with Yahoo’s net US ad revenues climbing to $3.28 billion by the end of the 2013.
According to a report released by eMarketer, the forecasted 2013 numbers are based on Yahoo’s Q4 search revenues coming in far higher than expected.
With the continued management restructuring and investments at Yahoo, eMarketer estimates the company’s net US search ad revenues to reach $1.23 billion this year, a seven percent climb from 2012. eMarketer also forecasts growth for Yahoo’s display ad business, citing the company’s efforts to remove clutter and increase prices with higher-quality inventory.
While Yahoo’s display ad business is growing, it is a slow climb compared to competitors like Google and Facebook who continue to take the lead in display ad marketshare. Despite Yahoo’s growth, eMarketer expects the company to continue losing its share of net US search ad revenue as Google and Microsoft win more of the market.
Even though Google’s marketshare of search ad revenues dropped from 74 percent in 2011 to 72.8 percent in 2012, the company still owns the lion’s share of the market. eMarketer reports that Google search ad revenues will once again grow in 2013, claiming 73.7 percent of the overall US search ad market which is expected to reach $19.8 billion in total revenue this year.