Global digital ad revenues at Yahoo are expected to fall significantly this year, even as earnings at competing digital players such as Google and Facebook will see historic gains, according to a recent ad spending forecast by digital market research company eMarketer.
Yahoo revenues this year are expected to slip in both its search and display categories. Worldwide net display ad revenues are expected to account for $1.41 billion in 2016, a 15.1 percent drop from 2015’s $1.67 billion. Worldwide net search ad revenues will take in $1.41 billion this year, a 12.7 percent decline from 2015’s $1.62 billion.
Overall, eMarketer predicts that Yahoo’s worldwide net digital ad revenues will total $2.83 billion this year, a 13.9 percent decline from 2015's $3.28 billion.
The numbers forebode a disconcerting trend at the search giant. By comparison, Yahoo’s display business in 2014 accounted for $1.66 billion, while search brought in $1.78 billion that year. eMarketer now projects Yahoo's share of the worldwide digital ad market will account for only 1.5 percent this year, a .6 percent decline from its 2.1 percent share in 2015.
Revenues at digital rivals Google and Facebook, meanwhile, are expected to move in the other direction. Worldwide net search ad revenues for Google will reach $47.57 billion in 2016, up from $43.98 billion in 2015, while Google’s worldwide net display ad revenues will hit $10.23 billion this year, up from $9.07 billion in 2015. eMarketer expects Facebook to post even bigger gains: the social media mainstay's ad revenues are expected to surge to $22.37 billion this year, up from $17.08 billion in 2015.
These is a silver lining, however, as eMarketer’s forecast reports that Yahoo this year will experience growth in one sector: mobile. Yahoo’s worldwide mobile ad revenues are expected to surge by nearly 25 percent in 2016 to account for $1.31 billion. Yahoo’s overall share of that market will still reveal declines, however, as revenue gains in this category will be outpaced by performances from Google and Facebook
Detailed results of eMarketer’s ad spending forecast can be found here.

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