Worldwide spending on mobile advertising is expected to reach US$31.5 billion this year, a 75 percent increase from last year thanks largely to Facebook Inc and Google Inc, according to a new report by research firm eMarketer.
By the end of this year, eMarketer expects mobile to account for nearly a quarter of total digital advertising spending, which is estimated to reach US$137.5 billion. That is up from 15 percent of the US$119.8 billion digital ad spending total for last year.
Mobile ad spending has been growing fast in the last couple of years, mainly due to ad revenue growth at Facebook, the world’s largest social network, and Internet search giant Google.
Last year, spending on mobile ads more than doubled to nearly US$18 billion from US$8.8 billion in 2012. Facebook and Google accounted for most of that increase. Together, their mobile ad revenue rose US$6.9 billion.
The researh firm expects Facebook’s share of the mobile ad market to grow to 21.7 percent this year from 17.5 percent last year, taking a bite out of Google’s share.
Google remains No. 1, with half of the mobile advertising market last year. This year, that is expected to decline to 46.8 percent.
In related news, a judge has tossed out an effort to win class-action status for a lawsuit accusing Google of violating the privacy of its e-mail users.
US District Judge Lucy Koh ruled on Tuesday that it is impossible to know which e-mail users consented to Google’s privacy policies, complicating the push for class-action status for the lawsuit.
At issue is the scanning of the contents of Gmail accounts and the related targeting of ads. Several similar lawsuits were filed across the country and were consolidated in Koh’s courtroom in San Jose.
The judge ruled that individual users can file their own lawsuits, but she permanently blocked another filing of a class-action lawsuit.