|By Kramer Phillips | 4 years ago|
Facebook has experienced an enormous growth since the inception of their Facebook app in 2012. They have been able to tap to small and midsized businesses that are looking to advertise to very specific people.
Facebook is projecting a $7 billion revenue in the last quarter of 2016. And an astonishing $2 billion in revenue. But that scale, they are planning $27 million revenue return this year. That is bigger than their closest rival Google by almost double.
However, Google is till market pacesetters as they also command a sizable amount of revenue from mobile ads. Google who is now under the umbrella company Alphabet uses their various platforms search like Google and YouTube as a marketplace for mobile ads.
“What should be a concern for everyone is the dominance of just two companies, Google and Facebook, who are capturing all of the growth in the ad marketplace,” said Jason Kint, chief executive at Digital Content Next.
However, Facebook has decided to cut back on mobile ads and instead focus on streamlining their platforms and generate new sources of income. Mobile ads have grown from providing the company 50 percent of their total revenue in 2012 to generate 84 percent of the total revenue in 2016.
Facebook has decided to cut back on the overall number of ads on the mobile feed. Google, on the other hand, is only discovering the full potential of the mobile ad even though they came up with the concept first.