Google has long dominated the online advertising world, but with its billion-plus user base and rapidly developing mobile capabilities, Facebook is emerging as a worthy competitor.
The latest report from eMarketer shows just how much the two Silicon Va[lley giants are expected to dominate the digital advertising industry. By 2016, they will own a combined share of 15% of the predicted $200 billion market, with 11.3% going to Google and 3.7% for Facebook.
Here’s the data from eMarketer:
A few other observations from the eMarketer report:
– Mobile ads on Facebook will account for 68% of the company’s ad revenue in the United States for 2014, for Google this number is 36.8%
– Advertisers will spend 83% more on tablets and smartphones advertising in 2014 compared to 2013.
– Ad spending on mobile will be more compared to that of the newspaper, magazines, and radio for the first time in 2014.
Despite the fact that everyone will be spending more on mobile, it doesn’t mean the ads have gotten better. Google’s mobile advertising efforts have been poor, and the same old display ads simply don’t work on the small screens. Facebook on the other hand as at least been innovative with its advertising, making it more action-focused and experimenting with automatically-playing video ads. Unless other platforms can figure out a way to make their mobile advertising efforts attractive to consumers, that’s a whole lot of money going down the drain.
