Google soon to earn more of its ad revenues from mobile ads than desktops

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It’s official. Google is making more revenue from mobile advertising compared to desktop worldwide. That’s according to new publisher estimates from eMarketer. However, the research firm cautions that in the US, it’ll still be a while until the transition is made.

This year, Google net US ad revenues on mobile have climbed to reach almost a 50/50 split with desktops. By 2018, it will have a 10.4% lead.

Mobile in the lead soon

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Source: emarketer.com

eMarketer says that almost 59.9% of Google’s net global advertising revenues will come mobile internet ads this year and that is set to reach almost 75% by 2018.

In 2016, Google is predicted to generate $63.11bn in net digital ad revenue globally. That’s a growth of 19% from 2015 and represents 32.4% of the entire global digital ad market worth $229.25bn in 2016.

It’s little surprise that Google is a dominant player in search advertising given its market presence and continued focus to revamp its ad products. This year, the company is set to generate $52.88bn in search ad revenues, or $56.9% in the search advertising market worldwide.

Within display, Google still trails Facebook, but is set to make $10.23bn in ad revenues on display globally in 2016.

eMarketer predicts that YouTube net ad revenues will increase 30.5% this year to $5.58bn. YouTube is a leading OTT video service in the US with 180m users in 2016, representing 95.7% of OTT video service users in the country. Net advertising revenues on the site will reach almost $3bn in 2016 in the US, accounting for 10% of the company’s ad revenues in the country.

YouTube ad revenue growing slowly

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Source: emarketer.com

Martín Utreras, Senior Analyst, eMarketer explains that accelerating advertising revenues at Google were largely boosted by it capitalising on certain mobile search trends, YouTube as well as programmatic purchasing options. He says:

“We see data and advertising at the heart of Google’s new product offerings. The new devices are not only aimed at diversifying Google’s revenues but also at enriching Google’s advertising targeting capabilities as consumers engage and share information with Pixel, Google Assistant, Daydream View, Chromecast and other Google ecosystem devices. We see this as contributing to both device sales and advertising revenues in the future.”