Feeds

Google gobbles HALF of world's mobile ad cash

If only people would pay attention to those adverts

Security for virtualized datacentres

Over half the $8.8 billion dollars advertisers spent on mobile ads last year went to Google, along with a third of all internet ads.

The $4.61bn Google raked in from mobile ads that year represented 52.36 percent of the total worldwide spend, eMarketer reported on Thursday, putting the search company far ahead of rivals such as Facebook, Twitter, and mobile ad specialist Millenial Media. Google is expected to increase its share of the growing market to 55.97 percent in 2013.

"Combined, three companies – Google, Facebook and Twitter – account for a consolidating share of mobile advertising revenues worldwide, as other players, such as YP, Pandora, Apple and Millennial Media, see their shares decrease, despite maintaining relatively strong businesses growing at rapid rates," the company wrote in a statement outlining the figures.

The transition to mobile advertising is upending the consumer internet companies as they all try to extract cash out of on-the-go ad-averse people. Failing to correctly monetize mobile poses a grave and present threat to these companies, as Zynga found when its failure to cream money off of mobes caused it to lay off 18 per cent of its workforce.

But mobile advertising is a drop in the proverbial ocean of online advertising, which was worth $104.04bn in 2012. Here Google also remains the king, with the search company taking a 31.46 per cent share of all revenues compared with Facebook's 4.11 per cent and Yahoo's 3.37 per cent.

That equates to total 2012 ad revenues for Google of $32.73bn, according to eMarketer. This compares with total revenues by the Chocolate Factory of $50.175bn, according to its annual report – though this is distorted by the acquisition of Motorala Mobility. By comparison, Amazon is projected to have made $600m in ads last year, and Facebook $4.28 billion.

As we've said, this dominance by Google of online ads has a major effect on the global economy, as the ad-slingers massive revenues subsidize a host of free services that ultimately distort the industries it operates in, such as webmail.

It also directly affects users, as ad-monetized companies such as Google and Facebook have an overwhelming incentive to slurp as much data on their users as possible – a chilling occurrence, given the NSA's fondness for that data via alleged data-gathering schemes like PRISM.

eMarketer figures put the total ad spend worldwide across all media as $502.98bn in 2012, with digital ads representing a fifth of that figure and Google almost a third of that. Put another way, Google represents around 6.2 percent of all spending globally on ads across all media.

But for all the money Google is raking in, the effectiveness of ads on the search giant and other platforms is doubtful. Recent research commissioned by Adobe found that people in Europe and North America were "dismissive" of online advertising, with 32 per cent of them not finding it "effective". ®

Internet Security Threat Report 2014

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple's iPhone 6 first-day sales are MEANINGLESS, mutters analyst
Big weekend queues only represent fruity firm's supply
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Bill Gates, drugs and the internet: Top 10 Larry Ellison quotes
'I certainly never expected to become rich ... this is surreal'
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.