Facebook Now Number 2 In US Digital Ad Sales, Thanks To Mobile [eMarketer]
In Facebook’s third quarter earnings report this year, the company shared that mobile delivered 49 percent of all ad revenues for the quarter — up from 41 percent in Q2.
eMarketer today released its latest report on US digital ad revenue share by company. Due in large part to mobile revenues, Facebook has overtaken Microsoft and Yahoo to claim the number to spot, with 7.4 percent share of net US digital ad dollars in 2013.
Emarketer’s earlier forecast showed Facebook continuing to lag slightly behind Yahoo through this year, however Facebook’s mobile ad business has helped it surge ahead of Yahoo in this latest estimate.
According to eMarketer, Facebook’s improved market share was triggered by the company’s “continued stellar mobile performance, with the potential to open up new inventory via Instagram as well as the announcement to include video ads in the newsfeed.”
Facebook’s mobile ad revenue share in the US jumped from 9 percent in 2012 to 16 percent this year, which it took primarily from Google. While eMarketer predicts Facebook will lose mobile ad share to Google, Twitter and Apple’s iAd network in the coming years, the social network is expected to retain its number two spot in the mobile market with 12.2 percent share in 2015.
Facebook’s $3.17 billion in digital ad revenue is still (and will continue to be) dwarfed by Google’s ad revenue of $17 billion. Google dominates with 39.9 percent of the US market and31.9 percent globally. The company’s ad revenue share is expected to grow in the US, reaching 42.3 percent in 2015.
However, Facebook is expected to solidify its runner-up spot and continue to outpace Microsoft and Yahoo in the coming years. Facebook’s ad revenue share is on track to top 9 percent in 2015, while. eMarketer predicts Microsoft’s ad revenue share will slip from 5.9 percent in 2013 to 5.4 percent by 2015, and Yahoo will lose even more share with a drop from 5.8 percent this year to 5.0 percent in 2015. Yahoo has lost a full percentage point in ad revenue share since last year.
Facebook holds the number two spot globally as well with 5.6 percent of digital ad revenues worldwide.
Mobile now represents 15.2 percent of all digital ad dollars spent globally, up from 8.5 percent in 2012. Internet ad spending on mobile will more than double this year worldwide, growing 105.9 percent to $18.15 billion in 2013. That’s up from just$8.82 billion in 2012.
Some opinions expressed in this article may be those of a guest author and not necessarily Marketing Land. Staff authors are listed here.
(Some images used under license from Shutterstock.com.)
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