Yahoo’s Back in Black, as Search Ad Revenues Rise

By Cameron Scott 

display ads, search engines, yahoo, microsoft, google, facebook,Yahoo’s U.S. ad revenues, which grew for the first time in several years in 2012, will expand again in 2013 to $3.28 billion, according to eMarketer.

The company’s total domestic ad revenue last year was $3.18 billion.

eMarketer revised its previous estimates upward after a Yahoo’s fourth quarter search revenue was flusher than expected.

The research firm called it “a sign that management restructuring and investment may continue to propel search revenues higher than previously estimated.”

Under CEO Marissa Mayer, Yahoo has placed more value in its search partnership with Microsoft.

Yahoo will likely net $1.23 billion in search ads in 2013, eMarketer said, up from a previous estimate of $1.16 billion.

As Mayer warned it would, display advertising revenue fell in the fourth quarter of 2012, as the company pruned the number of ad spots on its properties. But eMarketer expects that revenue to rebound and eventually increase.

Still, Yahoo lags well behind Facebook and Google’s in display advertising.

Google netted $2.26 billion from U.S. digital display ads in 2012 and Facebook pocketed $2.18 billion. Yahoo netted just $1.35 billion, according to eMarketer.