Bloomberg News

Facebook Leads in U.S. Mobile-Dispay Ads, EMarketer Says

December 17, 2012

Facebook Inc. (FB:US) will lead the mobile display-advertising market in the U.S. this year as total spending on ads for wireless devices rises almost threefold to more than $4 billion, EMarketer Inc. estimates.

While Facebook didn’t enter the mobile-ad market until earlier this year, the company may win 18.4 percent of the mobile display-ad market, edging out Google Inc., which is estimated to grab 17 percent, EMarketer said in a statement today. For all mobile ads in the U.S., including search and display, Google will have 57 percent of the market this year, while Facebook will have 8.8 percent.

The world’s largest social-networking service is ramping up its mobile advertising efforts as consumers increasingly use smartphones to access the service instead of desktop computers. Emarketer said it raised estimates for Facebook after the Menlo Park, California-based company said in October that mobile made up 14 percent of advertising revenue in the third quarter, or $150 million.

“Facebook is now expected to earn more display revenue than any other mobile publisher this year thanks to its ability to --more or less -- redistribute revenue from mobile to desktop through its native display products,” EMarketer said.

Facebook in September was set to be No. 6 in U.S. mobile display ads in 2012 with 6.6 percent market share.

Pandora Media Inc. (P:US), the radio service, was previously estimated to be the No. 1 player with 21 percent market share and is now expected to be No. 3.

Twitter, Apple

In overall mobile advertising, Pandora is expected to be the No. 3 player, behind Google (GOOG:US) and Facebook. Microblogging service Twitter Inc. should have 3.5 percent. Apple Inc. (AAPL:US), maker of the iPhone, should have 3.2 percent.

While the overall market is growing more quickly than earlier estimated, mobile-ad spending is still expected to grab just 2.4 percent of the total advertising market in the U.S. this year. It should reach 11 percent by 2016, where it will top radio and still be less than print, according to EMarketer.

The earlier estimate for overall U.S. ad growth was 80 percent, the researcher said.

To contact the reporter on this story: Brian Womack in San Francisco at bwomack1@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net


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Companies Mentioned

  • FB
    (Facebook Inc)
    • $64.87 USD
    • -0.10
    • -0.15%
  • P
    (Pandora Media Inc)
    • $26.16 USD
    • 0.32
    • 1.22%
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