More users are ditching their personal computers for tablets and mobile devices. As a result, companies are increasing budgets in the mobile ad market to target that niche audience.
Most social media companies generate revenue solely through advertising. We have already seen ads popping up on Instagram, USA Today, and many other Smartphone apps. With users constantly checking their social media, it’s a no brainer that companies have turned their dollars to the mobile ad market as well.
Google and Facebook are two of the most popular websites visited on mobile devices and are generating the most revenue from the mobile ad market. According to the article, “Google and Facebook Control Two-Thirds of Global Mobile Ad Market” by Jason Abbruzzese, Google leads the mobile ad market with 49.3% market share and Facebook follows close behind. Together, the two companies control 66.8% of the mobile market in the United States. “More than half of Facebook’s fourth-quarter earnings came from mobile ad revenue.” Mobile market share has more than tripled from 2012 to 2013.
Read more about mobile ad dollars in an excerpt from the article.
Increasing share in a growth market can do wonders for a company. More than half of Facebook’s fourth-quarter earnings in 2013 came from mobile ad revenue.
The social network’s ability to quickly pivot from being a desktop-focused product — Facebook had no mobile ad revenue as recently as 2011 — to the second-largest player in the space has sent shares in the company up more than 150% in the past year. The income also provided the financial footing for the $16 billion acquisition of WhatsApp, another major mobile play.
eMarketer’s study of global mobile ad share is also notable for the names not on the list. While Google and Facebook take the top two spots, other notable US. digital companies are missing such as Microsoft, Yahoo and AOL.