The Status of Mobile Advertising: Facebook on the Rise

The Status of Mobile Advertising: Facebook on the Rise

August 6, 2013

Consumers today have an insatiable desire to utilize the mobile space for everything and anything.  More and more people pay their bills, make purchases, and do their research on smart phones and tablets instead of at their desktops or through the mail – thus, the opportunity for companies to build their digital advertising is ever growing!  In the past three years alone, mobile advertising revenue in the digital space has increased worldwide from $4.02 billion in 2011 to $15.82 billion in 2013.  According to eMarketer, the number one player in the global mobile ad space is Google, bringing in $4.61 billion in 2012 and predicted to bring in $8.85 billion in 2013 – making up almost 56% of the mobile ad industry today.

Mobile RevenueWorldwide-01

The rate of growth in the mobile advertising industry has made ample room for competitors to make their mark.  Enter Facebook.  In 2011, Facebook was a non-player in the industry, but its 2012 launch of mobile advertising supercharged its presence, making it number two in leading the mobile ad space worldwide. eMarketer shows Facebook quadrupling mobile advertising revenue, bringing in $0.47 billion in 2012 and predicted to bring in $2.04 billion in 2013. Facebook makes up about 13% of the global mobile ad industry today.

Mobile Revenue Facebook-01

With the rise of digital advertising, especially in the mobile ad space, the already diminishing presence of direct mail advertising will continue to decline.  Not only is digital advertising a more cost-efficient means for companies to put their businesses on the map, it also facilitates a reach to a larger pool of consumers.  Internet advertising soared with a 21.9% increase from 2010 to 2011, according to MagnaGlobal, and has continued to become mainstream in the advertising industry.  Today, mobile advertising is growing at a more rapid pace than ever.  If the growth of Facebook mobile ad revenue continues to increase on trend, it is more than likely that Facebook will surpass Google to the number one spot in the near future, becoming the most sought after space for companies to build their advertising campaigns!

Facebook has a leg up in the mobile ad space because of its role in social networking.  Users are interactively plugged into this space at a constant rate.  A 2012 study by Marketing Land showed that Facebook users create 3.2 billion likes and comments daily, spend an average of 6.5 hours per month on the site via desktop, and there are over 543 million monthly active mobile users! Mobile advertising through social networking sites is a newly tapped market and Facebook is the frontrunner in changing the face of not only digital advertising, but mass media advertising as a whole.