Mobile Ad Spending In 2013 Stands At $17.96 billion; Facebook’s Rapid Mobile Growth May Hurt Google

Mobile is the new darling of advertising industry. Last year, the global mobile ad spending stood at $17.96 billion, a 105% increase as compared to last year. 2 major contributors towards the growth of mobile ad market in 2013 were Facebook and Google, according to new figures from eMarketer.  

Over the couple of years, Facebook has established itself as a significant player in the mobile ecosystem. In 2012, the social network’s share in the global advertising market was 5.4%. In 2013, that share increased to 17.5%. eMarketer predicts the share will rise this year to 21.7%.

As per Facebook’s Q42013 earnings, it earns 53% of its ad revenue from mobile. On the earnings call, Facebook said that it hit 556 million daily mobile users as compared to 507 million in Q3. In 2014, eMarketer estimates that mobile will account for 63.4% of Facebook’s net digital ad revenues. The way mobile is monopolizing the company’s ad revenue, it surely is an indication that mobile growth is a top priority for the company. In fact Mark Zuckerburg made it clear earlier this year when he told Wall Street analysts that “Facebook is a mobile company”.

Google is still the king of the mobile advertising market worldwide with a 49.3% share in 2013. However, emarketer predicts that Facebook’s rapid mobile growth will cause the search giant’s share to drop to 46.8% in 2014. Mobile accounted for 23.1% of Google’s net ad revenues worldwide in 2013, and eMarketer estimates this share will increase to 33.8% this year.

This year mobile ad spending is set to increase to $31.45 billion, thus accounting for nearly one-quarter of total digital ad spending worldwide.


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