Seeking Alpha

eMarketer: Mobile ads growing 75% in 2014; Google/Facebook to dominate

  • After growing 105% last year (soundly above a prior forecast of 79%) eMarketer sees global mobile ad sales rising 75% in 2014 to $31.45B.
  • Google (GOOG) is expected to account for 46.8% of all that spending; that figure is slightly below 2013's 49.3%.
  • An ongoing challenge for Google: Web browsing accounts for only ~20% of smartphone usage, making Google's search ad hegemony less valuable on mobile than on PCs. Helping to offset: Google's AdMob unit remains a top mobile display ad player, and the company is making efforts to integrate mobile app content within search results.
  • eMarketer recently predicted mobile search would account for 26.7% of Google's 2014 U.S. ad revenue, up from 19.4% in 2013. Altogether, the firm sees Google's U.S. PC search revenue falling $770M this year, and its mobile search revenue growing $1.76B.
  • Facebook (FB), which saw its mobile ad sales rise 4x Y/Y in Q4 and make up 53% of its ad revenue, is expected to have a 21.7% mobile ad share, up from 17.5% in 2013.
  • Twitter's (TWTR - 75% of Q4 ad sales from mobile) shares is expected to rise to 2.6% from 2.4%. Pandora's (P - 72% of Q4 ad revenue from mobile) is seen falling to 1.7% from 2.1%, and Millennial Media's (MM - just expanded by merging with rival Jumptap) to 0.7% from 0.8%.
Comments (8)
  • EquityInvestor1
    , contributor
    Comments (70) | Send Message
    Let's revisit those predictions at the end of 2013 to discover how wrong they all are! Rate of growth at 75% is modest at best, more like 95% or more. Google should maintain its share or grow. FB will struggle protecting it's %, while Twitter surprises by tripling its share.
    19 Mar, 07:28 PM Reply Like
  • 22643611
    , contributor
    Comments (2101) | Send Message
    Twitter is sinking fast and in fact user growth has dropped the last 3 quarters and will likely continue.
    The stock has seen a precipitous drop in ADV while drifting sideways and down from its peak of around $73
    Any bad news at all in the upcoming earnings and/or a warning going forward and I think it tanks big time.


    I have no position in twitter but I do follow it and have daytraded it but not in
    over a month.


    Just keepin it real.
    19 Mar, 09:24 PM Reply Like
  • Manitobatex
    , contributor
    Comments (476) | Send Message
    Google will grow 5-10%
    Facebook will grow 10-20%
    Twitter will grow 100%
    19 Mar, 08:02 PM Reply Like
  • jeepnsam
    , contributor
    Comments (49) | Send Message
    If Twitter came out with a more "mom and pop" friendly mobile UI like ($FB Paper) then usage will skyrocket! Easy Wins! Complicated does not! I'm long $FB $TWTR and I use Paper not FB, I Tweet but do not read what others tweet! Using Kik, What'sApp, Google+, Instagram, etc.. HEAVY MOBILE user
    19 Mar, 09:38 PM Reply Like
  • DanoX
    , contributor
    Comments (2577) | Send Message
    They will all bite each other 100% growth in mobile Ad's no way. Modest growth with Facebook growing the most.
    19 Mar, 11:19 PM Reply Like
  • EquityInvestor1
    , contributor
    Comments (70) | Send Message
    I obviously meant 2014 in my earlier post, my apologies. Jeepnsam, who do you see advertising on FB besides company pages? Twitter in it's current format is the most efficient to keep up with the world's news and interact with a global audience. I don't buy the shrinking growth rate of user's gain and engagement. Time will prove me right, in the meantime, take a look at "who" are advertising on Twitter on daily basis and this list is growing.
    20 Mar, 08:05 AM Reply Like
  • 22643611
    , contributor
    Comments (2101) | Send Message
    @Equityinvestor, how do you "not buy the shrinking growth rate of user's gain and engagement"?
    That makes no sense as the company itself has acknowledged as much?
    20 Mar, 08:41 AM Reply Like
  • monfrere
    , contributor
    Comments (580) | Send Message
    Yeah, stupid facts getting in the way of my fantasy!
    20 Mar, 08:46 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio: