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Mobile Ad Revenue Has Reached The Tipping Point
Last year, global mobile ad spending reached $17.96 billionaccording to new figures from eMarketer. This year, mobile is on pace to rise a further 75.1% to $31.45 billion which will account for almost 1/4 of global digital ad spend. However mobile revenue growth has reached the tipping point and analysts have marked a decline from 2014-2018.
For the moment, it is a two horse race between Facebook and Google, with Facebook making significant mobile revenue gains year-on-year.
Facebook is becoming a mobile only company, and with updates to the mobile news feed, video ads within the newsfeed and theacquisition of WhatsApp the social media giant has made huge progress towards mobile domination over the last two years. Instagram is also rumoured to have partnered with ad agency Omnicom which will mean additional mobile revenue streams for Facebook.
Google has over 20 mobile products and continues to expand its mobile suite inline with increased revenue. The company is using enhanced campaigns to help drive its mobile revenue and has a bigger focus on voice search. Google provides manufacturers with Android OS for free and monetises through ads. Apps such as Maps, Gmail and Hangouts are building loyalty, collecting data and can hep with targeting ads to the right user at the right time.
eMarketer predicts mobile will cover more than a third of the net digital revenues for Google this year however, it is estimated Facebook will cause the search giant’s mobile market share to drop to 46.8% in 2014 from 50% in 2013.
Despite Facebook’s mobile growth, Google remains solidly in the lead, although its market share is in decline.