Is the display ad market back? It is for one of the online ad industry’s bellwethers.
Yahoo announced that its display ad revenue surged by 20 percent during the first quarter of 2010 compared to the same period last year. And what perhaps can be seen as an indicator of a long-predicted “flight to quality” in the online ad business, Yahoo’s “guaranteed display” business—which includes its premium inventory, grew by 24 percent in Q1.
The display growth spurt exceeded some analysts projections. JP Morgan analyst Imran Khan had estimated 7 percent growth for Yahoo’s display business. “We are pleased with the improving trend from last quarter when display was down 1 percent,” wrote Khan in a note issued Tuesday (Apr. 20). We are encouraged by 20 percent growth, which we believe highlights the potential for additional growth in the display business.”
Overall, Yahoo hauled in $1.597 billion during the first quarter, resulting in 1 percent revenue growth versus the same quarter in 2009.