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Tuesday, April 22, 2014

Making Sense Of Google's Mobile Ad Market Share

By Sher Adam


We all know that Google dominates as the preferred search engine market with a share of over 65% in the U.S alone. Now with the increase of the use of mobile devices such as tablets and smartphones, Google's mobile revenue is due to increase by a 3.13%.



These two companies together are responsible for over 60 percent of the global ad spending that occurred in 2013. Although Google still owns over 50 percent of the worldwide advertising global market, Facebook is quickly outpacing Google's growth, and this continued rise will eventually cause the search engine king's percentage to drop below 50 percent.

The figure is expected to increase, and other Internet players are also expected to join in and expand their mobile marketing ad campaigns. Because today's biggest consumers are young people who are very tech savvy, and use a multitude of technological devices and social media, these are often the most effective ways to reach them.

This has created even stronger competition. With all devices combined, Google still remains the top ad publisher with almost 33 percent of all digital ad dollars directed in the tech giant's path. Facebook's market share will also increase, but Yahoo will lose some percentages due to the exponential growth of Facebook. However, Microsoft's market share remains stable.

Even in the app space, we have Google Play, and the Search and YouTube app have about 50% reach among the mobile audience. Therefore advertisers are willing to pay a higher revenue per search on Google. With Google's mobile ad market share expected to grow to $32.61 billion by 2020, its RPS is projected to grow to $8.50 by 2020. Making it a wise investment for those who would like to buy Google mobile ad market shares.




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