With the expansion of social media platforms and smart phones, the advertisement domain is moving towards mobile platforms. Google Inc (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB) are dominating the mobile ads business, which is worth $32 billion. Facebook Inc (NASDAQ:FB) holds 22% of this huge ad revenue. Discussing the mobile ad sector in a program on Fox Business, StockTwits Chairman, Howard Lindzon, said that Facebook and Google Inc (NASDAQ:GOOGL) are dominating the mobile ads industry and other major social media companies are making their ad strategy based on mobile platforms.
According to a survey by Adobe, 71% users access social media from their mobile devices and this is the prime reason behind the elevation of mobile-based ads. Facebook Inc (NASDAQ:FB) is focusing massively on recreating the mobile ads for the emerging markets as well. According to eMarketer, mobile ad spending in the U.S. will surpass $58 billion and capture 71% of all digital ad spending by 2018. According to a presentation, eMarketer’s Chairman, Geoff Ramsey, at ANA’s Digital & Social Media Conference predicted that, by the end of 2014, 68% of Facebook’s revenue and 84% of Twitter’s revenue will come from mobile advertising.
Lindzon said that Google Inc (NASDAQ:GOOGL) is the leading entity in the ad business and Facebook Inc (NASDAQ:FB) is also doing a great job. However, he is not very keen on Twitter’s model of ads and said that Twitter Inc (NYSE:TWTR) must redesign its ads to get transactions and maximum business out of them.
According to Fox Business, out of the $140 billion digital advertising revenue in 2014, Google Inc (NASDAQ:GOOGL) holds the largest stake, of almost 31.5%, followed by Facebook Inc (NASDAQ:FB) with 7.8%.
Facebook Inc (NASDAQ:FB)’s Q1 earnings show that the company has 59% of ad revenue coming from portable devices. Q1 report also shows that Facebook Inc (NASDAQ:FB)’s monthly mobile users are up 34% to 1.01 billion now, daily mobile users is up 43%, and mobile as a share of total ad revenue is up from just 30% to 59%. It also now has 341 million monthly mobile-only users, up from 296 million in Q4 and 189 million a year ago.