When it comes to online advertising Google is king. In 2012 Google led the charge with 40.9% of all digital ad revenues. Prior to 2012, Yahoo followed Google in advertising. However, for the first time, Yahoo has been bumped from their 2nd place position, and Facebook is now the second largest online advertising business. Yahoo was also surpassed by Microsoft. This puts Yahoo in fourth place for the first time, and they are projected to stay in fourth place through 2015.
Although this is a big accomplishment for Facebook, they are still far behind Google. Facebook achieved 5.9% of the total digital ad revenue, compared to Google’s 40.9%. However, the total online ad revenue for 2012 was $36.80 billion, so 5.9% is still significant. Google is predicted to grow to 42.3% by 2015, and the total online ad revenue is expected to increase to $53.36 billion by 2015.
Part of Facebook’s ability to surpass Yahoo is in their embrace and utilization of mobile advertising. Facebook saw the trend quickly moving from desk top to mobile, and they made moves accordingly.
Digital advertising is a quickly growing industry, and with the ever changing technology, it is important for advertisers to stay at the forefront of change. For example, in the past year the focus of digital advertising has moved drastically towards mobile advertising. Companies want to make their ads easily viewable on mobile devices. This goes along with the rapid growth in mobile commerce. Across the board, people are moving away from searching the web from a desktop computer.
Google and Facebook have managed to stay at the forefront of these changes. Google has created such a dominate position because of their success as a search engine. Google has more clout within the world of digital advertising because it is still the most used search engine, by far. People are going to pay to have their ads on Google because they know people will be on Google.