Google and Facebook Have Cornered the Mobile Ad Market
NEW YORK – According to a recent report by eMarketer, Google (NASDAQ:GOOG) and Facebook (NASDAQ:FB) account for approximately 69 percent of all mobile ad revenue on the internet today. The report, which was released on Thursday, estimated that Google would reach more than 50 percent of ad revenue by the end of this year. If so, the numbers would point to Google continuing its domination of the internet in the mobile space.
However, one of the drivers to Facebook’s share rally has been its positioning in mobile advertising, and it would appear that the company is chipping away at Google’s dominance in the space. According to reports, Facebook’s ad revenue should jump from $ 4 billion in 2012 to more than $ 6 billion this year – Facebook passed Yahoo! (NASDAQ:YHOO) as the second biggest mobile ad company in 2012. Recent reports indicate that nearly 41 percent of the company’s total ad revenue comes from mobile.
To give some perspective, Google’s mobile ad revenue is expected to increase in the low-single digits this year while Facebook’s should increase by ten percent or more. While Facebook will not pass Google soon, it is increasingly offering stiff competition in this lucrative space.
Meanwhile Google CEO, Eric Schmidt, countered claims from Oracle’s (NYSE:ORCL) Founder and CEO, Larry Ellison that Google ‘stole’ the company’s technology. According to comments from Schmidt on his Google+ account, ‘we typically try to avoid getting dragged into public battles with other companies. However, I’ve gotten a lot of questions about Larry Ellison’s claims that Google “took [Oracle’s] stuff.” It’s simply untrue – and that’s not just my opinion, but the judgment of a U.S. District Court.’
The public feud stems from allegations that claiming Android infringed on Oracle’s patents and violated copyright law. However, Oracle lost their lawsuit and Ellison turned to a Charlie Rose interview on CBS (NYSE:CBS) to express his disagreement with the court’s decision. It is not clear how this feud will end and both men as leaders of multi-billion dollar tech empires and a prolonged public dispute could eventually damage the reputations of both companies.