June 13, 2013
Google To Dominate Mobile Advertising
Peter Suciu for redOrbit.com — Your Universe Online
For the second straight year, Google will reportedly sell more mobile ads than the rest of its rivals combined. According to a report released on Thursday by research firm eMarketer, the search giant will generate nearly $8.9 billion mobile ad revenue in 2013.“Google earned more than half of the $8.8 billion advertisers worldwide spent on mobile internet ads last year, helping propel the company to take in nearly one-third of all digital ad dollars spent globally, according to eMarketer´s first-ever figures on worldwide digital and mobile advertising revenues at major internet companies,” the research firm noted in a statement.
Google is not the only company to see growth in the mobile sector. The firm further reported that Facebook made nearly half a billion dollars worldwide on mobile ads last year. This is notable, as the social network had no mobile revenue in 2011, and moreover the revenue from mobile ads is expected to increase by more than 333 percent to just over $2 billion in 2013. This could account for a 12.9 percent share of the global net mobile ad market.
Twitter is also expected to see its share in the worldwide mobile ad market increase to about two percent, and increase to 3.6 percent in the United States. Music streaming site Pandora is also expected to see its revenues increase to $400 million this year, but this comes as its market share drops from 2.71 percent in 2012 to 2.5 percent in 2013.
This is also the first time eMarketer has released digital ad numbers that span the entire globe, as previous estimates had been confined to the ad market in the United States.
It is also noteworthy because Google doesn´t officially disclose how much of total ad revenue flows from the ad market, and the search giant has only said during quarterly earnings reports that the mobile ad business is thriving. The research firm estimated Google made $4.61 billion in mobile Internet advertising last year, which was more than triple its earnings from 2011.
This year´s mobile revenues could be far greater, up 92.1 percent to $8.85 billion.
eMarketer´s projection gives Google about 56 percent of the mobile ad market, while the company is expected to gain traction in the overall online advertising marketplace. Google looks to see its share increase from 31.5 percent of the market to 33.2 percent. Of course this could become more of a problem for Google, as it comes just as the EU anti-trust hearings heat up.
In April, European competitors called Android -- Google´s mobile operating system -- a “Trojan Horse.”
“Google is using its Android mobile operating system as a ℠Trojan Horse´ to deceive partners, monopolize the mobile marketplace, and control consumer data,” said Thomas Vinje, counsel to FairSearch Coalition in a statement.
It also isn´t just in Europe where Google has found itself in hot water.
Last month, the company found itself under investigation by the United States Federal Trade Commission (FTC), and the search giant faces a new anti-trust probe that will look into whether the company is using its leadership position in the online display-advertising market to illegally block competition.
Google has had numerous run-ins with the FTC, many of which date back to its purchase of DoubleClick.
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