Facebook Is Gaining Ground on Google In a Big Way
NEW YORK ( TheStreet) - Advertisers are putting a lot of stock behind ads designed specifically for mobile devices as consumers increasingly use their smartphones and tablets to check their Facebook
Global mobile advertising spending rose 105% in 2013 to $17.96 billion, up from $8.76 billion in 2012, according to data analyzed by eMarketer, a digital marketing, media and commerce research firm. Mobile ad spending is on pace to rise 75.1% to reach $31.45 billion in 2014, accounting for "nearly one-quarter of total digital ad spending worldwide," the New York research firm said on Wednesday.
Facebook in particular is gaining significant market share. The Menlo Park, Calif.-based social network accounted for just 5.4% of mobile ad share in 2012. Last year that percentage jumped to 17.5%. Facebook's share will rise to 21.7% in 2014, meaning that Google's domination will recede somewhat to 46.8%, eMarketer predicts.
In 2012, only 11% of Facebook's net ad revenues worldwide came from mobile. Last year, that figure jumped to 45.1%, with eMarketer estimating that mobile will account for 63.4% of Facebook's net digital ad revenues in 2014, it says.
Turning to Google, mobile ad revenue accounted for 23.1% of the company's net ad revenues worldwide in 2013. EMarketer estimates this share will increase to 33.8% this year.
That said, as mobile usage becomes even more ubiquitous, mobile ad spending will start to level off. Mobile ad spending is projected to rise 45.8% in 2015 to $45.85 billion and 33.9% to $61.4 billion in 2016, eMarketer estimates.
Ads via Facebook and Google accounted for a majority of the market growth last year, the report stated. The two companies combined saw net mobile ad revenues rise by $6.92 billion, approximately 75% of the additional $9.2 billion in ad dollars that were designated for mobile ads last year, eMarketer found.
Google is, by far, the largest holder of ad revenue share, locking up 49.3% of share in 2013. Facebook, Twitter
Twitter is also moving onto the scene, albeit at a much slower pace. The firm estimates that Twitter saw its share of the worldwide mobile advertising market rise to 2.4% last year, up from 1.5% in 2012. For 2014, eMarketer estimates Twitter will see its share rise to 2.6%.
Revenue taken in from mobile ads is clearly the future for Facebook and Google.
--Written by Laurie Kulikowski in New York.