Microsoft to overtake Yahoo for the first time in ad revenues

New York: Microsoft is expected to overtake Yahoo for the first time in digital advertising revenues, a research firm said today.

The survey by eMarketer represents a setback for Yahoo’s effort to return to its glory days as an Internet pioneer. The report said Google will extend its domination of the global digital ad market this year, with a 31.45 per cent market share, while Facebook will see its share grow to 7.79 per cent.

Yahoo’s ad revenues will increase by around 2.7 per cent to $3.53 billion, but its growth will be slower than the rest of the fast-growing sector, eMarketer said. Microsoft meanwhile is expected to see 20 per cent growth in ad revenues to $3.56 billion, for a 2.54 per cent market share.

The total market for digital ads is expected to grow by 16.7 per cent to 140 billion USD, the survey said. Facebook and Twitter are expected to see the fastest growth, eMarketer said, although Twitter’s market share will remain below one per cent.

The news comes with Yahoo set to report quarterly results, two years into the reorganization launched by chief executive Marissa Mayer.