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BREAKING NEWS & VIEWS

Facebook Passes Yahoo, Drops Banners
Friday, February 19, 2010

Facebook is not just the biggest social network in the world. Now in the U.S. market it is the second-largest Web presence. According to the latest monthly stats from Compete, in January Facebook drew more than 133 million unique users, finally surpassing previous No. 2, Yahoo, with 132 million uniques. But the network may not stop there. Its growth trajectory is putting it on track to surpass Google, which topped the charts in January with 148 million uniques.




According to Compete analysts, the real story of Facebook’s dominance of the Web is engagement, not eyeballs. The site attracts 11.6% of all time spent online. Yahoo garners 4.25% and Google 4.1%. People are using Facebook as a home base on the Web, the always-on console through which they can access not only friends but news feeds, games and multimedia. According to the Online Publishers Association's Internet Activity Index, the share of time spent online for community sites like Facebook, blogs and message bases has grown from 9.7% in December 2008 to 24.2% in December 2009. This constitutes a tectonic shift in the relative share of time people spend on community sites and away from traditional content destinations. A year ago, (Dec. 2008), content sites accounted for 43.2% of time spent online. A year later, content's share of online time had dropped substantially to 36.9%.




How Facebook decides to monetize that massive audience and those time-spent metrics is still evolving, however. The company just announced last week that it would stop running banner ads. Instead it wants to focus on ad types that involve some kind of social interaction.

If you have breaking news to share please contact Steve Smith at ssmith@accessintel.com

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