Citi Analysts: Facebook Ads Are Taking Spending Away From Display, Not Search

Back in May, we reported that Facebook now accounts for one out of three ad impressions in the U.S., and that, really, no other web property in the U.S. comes close (Yahoo was second with 10 percent). That means that Facebook served approximately 340 billion ads in the first quarter. It's probably not a surprise, then, that advertising makes up for about 89 percent of the social network's total revenues, which are estimated at about $1.6 billion for the first six months of 2011. Today, on Citi's third quarter search marketing trends call, the panelists discussed the current landscape of search advertising, among other things that Google is maintaining its dominant market share in advertising spend on search, at 80 to 81 percent of total spend. While the panelists said that they're not seeing much demand for social search ad targeting, there is obviously a ton of interest in marketing on Facebook.

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