Twitter Mobile Ad Revenue to be Almost Double than Facebook’s This Year [REPORT]
A report from eMarketer estimates that Twitter will hit $129.7 million in U.S. mobile ad revenues this year compared to $72 million for Facebook.
Both companies earn far less mobile revenue than companies with more established mobile Ad platforms like Google and Pandora, though growth in mobile revenues at both social networks is expected to remain high throughout the forecast period.
Google is still at the top of the pile: It will account for 56% of all mobile ad sales. Perhaps more surprisingly, Twitter is doing better than Facebook in driving revenues where mobile ads are concerned.
However eMarketer predicts that by 2014, Facebook will be making $629.4 million in mobile ads, compared to $444 million for Twitter, putting Facebook at a distant second to Google. Longer term, eMarketer predicts that U.S. mobile advertising will generate sales of $12 billion by 2016.
Going back to 2012, the main reason for Facebook’s lower revenues at present, it seems, is the basic fact that it’s not been selling ads on mobile for as long as it has been selling them on main site, accessed via desktop PCs, Compared to twitter. It was only in August, in fact, that Facebook unveiled its very first non-social mobile ad unit, an option for newsfeed ads that open iOS or Android app store purchase windows when clicked.
Whereas, users increasingly access Twitter via mobile devices. The tight integration between the company’s Ad products—particularly Promoted Tweets—and core user experience has made the subsequent shift toward displaying mobile advertisements relatively simple. Twitter CEO Dick Costolo has reported that, on most days, the service generates more ad revenues from users on mobile devices than it does from viewers of Twitter.com.
Google, and others like Pandora (at 8.7% of all U.S. mobile ad revenues, 20.5% in display alone), are doing better is simply because they have been in the business since a longer time.
However these figures are bound to be reversed over time: eMarketer predicts that by 2014, Facebook will be making $629.4 million in mobile ads, compared to $444 million for Twitter, putting Facebook at a distant second to Google. Longer term, eMarketer predicts that U.S. mobile advertising will generate sales of $12 billion by 2016.