Mobile internet advertising giants race: Who is the bigger beneficiary

17 billion U.S. dollars, this is the first half of the United States Internet advertising scale, 1.2 billion U.S. dollars, is the same time the size of mobile internet advertising in the United States. The difference between the two sets of numbers is obvious, both on the surface and behind. Statistics from the US Internet advertising agency and PwC show that growth slowed sharply to 14%, compared with 95%.

A similar situation is found in the west of the Pacific (601099, Strand). In a report, Dcci predicted: China Mobile internet advertising will reach 5.72 billion yuan this year, an increase of 92.6%, and next year this figure will exceed 10 billion yuan.

Still, mobile advertising is controversial, questionable, or a bit of a debate. However, the real can not be overlooked is that in the field of mobile internet advertising, whether domestic or foreign internet giants, have quietly started a new race. The most interesting guess becomes: Who is the bigger beneficiary?

New Harvest

Facebook, which reported a net loss of $59 million trillion, has made a significant breakthrough in a long period of uncertainty, according to the latest third-quarter earnings. In the quarter, Facebook posted more than $150 million trillion in mobile advertising revenue, up 43% from a year earlier, accounting for 14% of the total advertising revenue for the eight-year-old social-networking site.

You know, in the first quarter of this year, Facebook's mobile ad revenue was almost Nil.

"I want to dispel this myth" "T" (I want to get rid of rumors that Facebook can't make money in the Mobile world), "said Mr. Zuckerberg, a consistently proud founder of Facebook, when he spoke of third-quarter results. Facebook's share price rose nearly 20% on the same day.

As Zuckerberg puts it, mobile has long been seen as the biggest weakness of Facebook. On the one hand, Facebook's poor experience with mobile clients has been criticized repeatedly, and Facebook made it clear in its prospectus that the increase in mobile-end users would adversely affect performance due to the lack of mobile display advertising systems.

This March, Facebook officially launched a mobile advertising program. With the new system, if a user comments on one of the ads or clicks "Like", the user's buddy will see the same ad, whether or not, on their mobile or tablet computer, from the Mobile buddy Dynamic (news Feeds).

Despite the controversy, Facebook has actually benefited from mobile advertising. Twitter is on a similar path, and it is widely believed that Twitter users are more receptive to mobile advertising, and even reports that Twitter will have a higher mobile ad revenue this year than Facebook. In addition, LinkedIn is exploring this.

But this is far from a race that only unfolds among social networking sites. Some have even started to ask: Will Facebook's mobile ads grow faster than Google's? Social and search-for-battle imaginations unfold again.

Let the data speak. Also talking about third-quarter earnings, Google CEO Larry Page revealed that the search giant's mobile revenues will reach $8 billion trillion this year. Dickerement, an analyst at Barclays Bank, estimates that some 6.5 billion dollars are from advertising. By this calculation, Google's mobile advertising revenue growth rate of 160% per annum.

Google vice President Liu previously mentioned that the Chinese market for mobile advertising requests increased by 120%, has become Google's mobile advertising requests ranked top five of the countries.

In fact, Google has been a big winner of mobile internet advertising. Back in 2010, Google bought mobile ad network AdMob through a deal worth 750 million of dollars. According to a report published by emarketer, a market research firm, Google currently occupies 56% of the mobile ad market and has a 96% share in the mobile search advertising market.

Old problem

Despite the rapid development, mobile internet advertising still needs to face many problems. Many of these problems are also what internet advertising has been or is experiencing. Mary Mikel, the internet queen, said in a trend report released in the first half of the year that U.S. Internet advertising costs about 3.50 dollars per thousand, compared to 0.75 dollars for mobile ads.

Emarkter's survey also shows that advertisers invest more money in mobile search ads than mobile display ads. However, CPM for mobile search advertising is significantly lower than display advertising. Low conversion rate is one of the factors restricting price promotion, and the small screen of mobile devices is also the shackles of mobile advertising development.

Baidu CEO Robin Li has said more than once that the three major business models of the internet age-advertising, gaming, E-commerce-all face new challenges in the mobile internet era, including the size of the screen.

Also in the third-quarter results of the conference call, Li stressed that Baidu is currently only exploring various mobile search advertising mechanism, in his view, users have not yet relied on mobile search. In a speech at the end of September at Stanford, Li revealed that about 25% of Baidu's research and development spending was on the mobile business, while less than 10% of the revenue came from the business.

Tencent's attitude seems more resolute, and Ma said last month that Tencent's mobile internet layout will focus on three aspects of platform, advertising and security. In mobile advertising, MA says Tencent will build a social-based precision marketing system to create advertising value on the mobile internet.

What is the value of mobile advertising? Eric Statistical report shows that the application is still the primary task of domestic advertisers to put mobile ads; from the point of view of the ads, the proportion of advertisers in the lower percentage of "diversion" ads the highest click rate, while the "Display class" ads the lowest user clicks.

On the other hand, Anwar's survey of developers suggests that 33.4% of app developers are reluctant to load ads at this stage, mainly for two reasons: dissatisfaction with existing advertising formats and the price of advertising. Both developers and advertisers are looking for more impact on users of the new mobile advertising forms.

September proposed the establishment of October, Hufeng leader of Baidu lbs division, in the Innovation Workshop CEO Lee Kai-Fu, is Baidu to explore mobile Internet, O2O advertising initiatives.

Lee stressed that advertising will certainly become the backbone of the mobile internet revenue, but "short-term to have enough patience, even to survive." In his communication with Sina technology, he recalls that search advertising requires a long incubation period, and that the effect of more difficult to measure mobile advertising is likely to show the strength of more than 35 years.

"I think the whole chain of mobile Internet value must be more than the PC client", Lee said that when the user volume is large enough, time consuming enough, mobile advertising low prices will naturally be improved.