Facebook and Google Benefit From Mobile Ads

Mobile applications have seen a large variety lately because mobile phones are the most used electronic devices. Facebook and Google accepted the challenge regarding financial benefits from advertising on phones and they compete for bigger and bigger earnings.

Last year, advertisers spent $4 billion on mobile ads in the United Stetes. It is aconstantly expandingmarket and Facebook takes advantages of it, especially after introducing “Sponsored stories”. The company brought in $339 million in total mobile ad revenue in 2012.

Another Internet giant, Google, also had a good year with money from mobile ads. The company has a significant success with mobile search ads. In 2012, Google made $1.86 billion from mobile search ads, dominating mobile search and mobile advertising like it does in online and desktop search advertising. Google Mobile Ads appear on mobile devices in Google search results, on content websites and in apps. Users are able to target audience across different platforms and devices, improving their business performance and building a brand. In Google “mobile planet” there’s place even for new publishers, who are invited to make money from the mobile web traffic.

Facebook is growing its mobile advertising business. 20% of all Facebook ad spend are going to mobile. It is a major progress, considering the fact that Facebook began showing ads on mobile in March 2012. In time, it was proved that Facebook mobile ads work and could keep the company successful. The social media network has also been focusing on improving the design of its mobile ads so they describe what’s being promoted, stay fresh, and don’t get tuned out.

Mobile devices are becoming a very important channel for advertising. Although most of the ads are showing on desktops, mobiles have their advantages: an ad on phone can take up most of the screen and therefore may be more likely to make a real impression on users. The biggest companies over the world have embraced mobile advertising. It is expected that the channel become more and more competitive as new devices deliver interesting experiences. And that is how Facebook and Google benefits from mobile ad can be bigger, and bigger, and bigger.

Published on 13th Jan 2013 @ 12:33 PM