Facebook Set to Steal Yahoo’s Display Revenue Crown

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yahoo_smallADOTAS – There’s no longer sunny days at Yahoo, just partly cloudy ones. While Yahoo’s fourth-quarter earnings doubled from the year before — $312 million in 4Q2010 vs. $153 million in 4Q2009 — net revenue still dropped by 4%. Oh yeah, Y is going to lay off some more people as well — apparently December’s grand staff purge wasn’t enough.

Alas, it looks like a new storm is on the horizon as comScore reported that Facebook showed about one out of every four display ads on the Internet during third quarter 2010. Yahoo delivered 141 billion display ads in the third quarter, 11% share and less than half of Facebook’s 297 billion.

Facebook overtook display king Yahoo in number of impressions back in the first quarter of 2010, but ol’ Y still leads in display revenue, as a great deal of Facebook display ads cost less than dirt.

However, Yahoo reported its display revenue for 2010 was $1.89 billion. Facebook’s ad revenue was $1.86 billion, the majority of which is from display ads. (A slice of that also comes from Facebook Credits, which will increase substantially this year as Facebook has dubbed them the only virtual currency allowed on the social network.)

eMarketer is pegging Facebook’s revenue to grow to $4 billion in 2011, which means that unless Yahoo has some kind of miraculous resurrection, the social network will soon be champion of display in terms of impressions and revenue. Zuck and crew may have already stolen Yahoo’s crown…

Oh yeah, whatever happened to that Google company? Didn’t those guys want to dominate the display space? Well, comScore says Google showed 35 billion impressions for a 2.7% share of display in the third quarter of 2010. Um…

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