Google now takes one of every three dollars spent on digital advertising—and one of every two on mobile

Google now takes one of every three dollars spent on digital advertising—and one of every two on mobile

By Leo Mirani @lmirani 11 hours ago

Figures out today from eMarketer, a digital marketing research firm, show that Google gobbled up 31.5% of the $116.82 billion companies took in digital advertising last year. (The numbers from eMarketer are based on the total advertising revenue companies like Google earned minus the cost they have to pay affiliates for “traffic acquisition,” which is a fee paid to referrers or through programs such as Google’s AdSense.) That’s down a little from 32% in 2011. But this year Google’s share should reach one-third of expected total advertising revenues of $116.82 billion. The next biggest winner of digital ad revenue is Facebook. Its share for 2012 was a fraction of Google’s: 4.1%. Google is even more dominant in mobile advertising. Of the $8.8 billion companies pulled from mobile advertising, Google accounted for $4.6 billion, or 52.4%. Facebook went from a standing start—zero in 2011—to 5.4% ($470 million) in 2012. It is forecast to more than double its share to 13% ($2 billion) of this year’s $15.82 billion total. Not taking affiliate fees into account, advertising accounted for 95% of Google’s revenues last year.

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a comment