Facebook Sees Big Gains in Global Mobile Ad Market Share
Facebook's continued emphasis on mobile monetization, along with its users' ongoing shift toward mobile devices, is resulting in dramatic gains in mobile ad market share, according to eMarketer's latest estimates of worldwide ad spending and revenues at significant players in the mobile and digital ad markets.
The company is expected to see its share of global mobile internet ad revenues reach 15.8% this year, up from just 5.35% in 2012, which was the first year that Facebook had any mobile ad offerings. eMarketer previously estimated Facebook's share of mobile ad revenues worldwide would reach 12.9% this year.
eMarketer estimates that Google will grab 53.17% of the worldwide mobile ad market this year, up slightly over 2012 -- primarily a result of continued growth in mobile search usage and further mobile monetization of YouTube. The overall mobile ad market worldwide is expected to grow 89% to $16.65 billion in 2013, eMarketer estimates.
Both Facebook and Google are now the top ad publishers not only for mobile, but for all digital as well -- with an even stronger lead on the competition.
Across all devices, Google remains by far the No. 1 digital ad publisher in the world and will take in nearly 33% of all digital ad dollars worldwide this year, eMarketer estimates, up from 31.46% in 2012. Facebook will also increase its share of the total, to 5.41%, while Yahoo! will lose some ground. Microsoft's share of the worldwide market will hold steady.
These digital ad market share figures are only slightly adjusted compared to eMarketer's previous forecast, released in June 2013, which projected a 33.24% share of the worldwide digital ad market for Google, and a 5.04% share for Facebook. The most significant change has been an increase in expected revenues at Microsoft. In June, eMarketer forecast just over $2.08 billion in worldwide ad revenues for Microsoft, but information provided by the company has led us to revise that estimate to an expected $2.92 billion.
eMarketer has increased its forecast for worldwide ad revenues at Facebook significantly since June. Stellar performance in Q2 led to the upward revision, from $5.89 billion initially expected in ad revenues for 2013, up to $6.36 billion now projected for this year.
Amazon is expected to see its global ad revenues grow 37.7% to $840 million this year, eMarketer estimates.
Mobile is making inroads in digital ad spending throughout the world, according to eMarketer's latest forecast of paid media ad spending worldwide. While mobile internet ad spending as a share of the total digital market is largest in North America, it's growing in every region around the world.
This year, eMarketer expects, 18.8% of all digital ad spending in North America will go toward mobile internet ads -- which include all mobile advertising on tablets, smartphones and other devices except messaging-based formats. By 2017, nearly half of all digital ad spending in North America will be on the mobile internet.
Western Europe and Asia-Pacific are nearly tied this year, with 12.6% and 12.3% of all digital spending occurring on mobile, respectively. But Western Europe is expected to expand its share more rapidly, as a relatively mature desktop ad market gives over to mobile channels. Latin America, the Middle East and Africa, and Central and Eastern Europe all have less mature digital ad markets overall, but the direction is clear: A greater share of all digital dollars will go toward mobile each year. By 2017, eMarketer expects, 36.3% of digital ad spending around the world will go toward mobile formats, up from just 4.6% as recently as 2011.
That's happening even as digital continues to grow significantly, meaning much digital growth is attributable to mobile specifically. North America will remain the No. 1 digital ad market throughout the forecast period, with Asia-Pacific in second place.
Overall, eMarketer predicts an increase of 2.8% in total media ad spending worldwide this year. Next year, the FIFA World Cup will help boost growth levels to 5.0%, the highest projected increase through 2017. By the end of the forecast period, eMarketer estimates advertisers around the world will spend $616.3 billion on all paid media.
eMarketer bases its estimates of US ad spending on the analysis of reported revenues from major ad-selling companies; data from benchmark sources the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers (PwC); estimates from other research firms; consumer internet usage trends; and eMarketer interviews with executives at ad agencies, brands, online ad publishers and other industry leaders.