According to eMarketer, a research firm which specializes in online marketing, Twitter’s mobile advertising revenue will be greater than that of Facebook’s by the end of this year. However, Facebook will exceed Twitter next year.
eMarketer’s estimates for Twitter mobile ad revenue will reach 129.7 million dollars this year. This is bigger than the estimated value for Facebook for the same period, which will be 72.7 million dollars.
The mobile business is something that companies find to be gradually becoming more and more essential. This is because the mobile device market has risen steeply.
In fact, Transparency Market Research reports that smart phone sales for the year 2015 will reach 1.048 billion devices, and tablet computer sales will reach 246.8 million devices.
Dick Costolo, CEO of Twitter, said that the social networking site has always been designed for mobile devices. Twitter has gained most of its advertising revenue from mobile platform Promoted Tweets. Facebook Is also more successful in mobile advertising compared to desktop app ads.
Click through rates (CTR) for Facebook are relatively low, yet these values already generate hundreds of millions of dollars as previously mentioned. For the mobile ads, the CTR is at 0.79 percent.
Facebook’s mobile ad strategy is the toughest challenge according to Mark Zuckerberg, CEO. For one, Facebook is designed for the desktop computer. Extraordinary change in the structure of the Facebook app is needed so that it can work well in mobile devices.
eMarketer predicts that Facebook will beat Twitter in terms of mobile ad revenue by the year 2013. By then, Facebook will have a revenue of 387 million dollars while Twitter has 272.6 million dollars.