Market research firm eMarketer revealed this week that spending on mobile ads worldwide will surge 75.1% to $31.45 billion, in 2014, largely fueled by Google and Facebook. This will represent nearly one-quarter of digital ad spend worldwide.
Google is still the market heavyweight, with eMarketer predicting a 46.8% market share. This is down from a 52.6% in 2012 which they are attributing to Facebook’s massive growth.
Facebook has rapidly upped the ante for mobile advertisers. Less than two years ago, Facebook had a limited footprint in mobile advertising and there were serious doubts that the social network could achieve the same success it had seen with its desktop ads. However, by Q4 2013, more than half of Facebook’s earnings were attributed to mobile ad revenue.
Facebook’s large, native ads units in the mobile News Feed are hugely popular with mobile marketers. Facebook’s mobile app install ad unit allows users to seamlessly install new apps. They company recently introduced mobile video ads as well as new ad units for Instagram, which are expected to propel their mobile business in 2014.
By contrast, Google’s market share is slowly receding but will continue to lead the mobile ad market in the near future with its mobile search query ads. According to the New York Times, the company’s mobile search ads cost significantly less than desktop.
eMarketer is also predicting a slight gain for Twitter from 2.6% from 2.4% in 2013.