A company’s growth in business is measured by the growth of its model over competitors, or the absolute growth with respect to market share of an entity. Facebook has been registering growth, more specifically the mobile and online ad markets. Facebook, from having a zero market share in 2011, of the mobile ads market, went to having a 5.3% in 2012. The numbers are expected to triple by the end of fourth quarter to 15.8%.
This marks a tremendous increase in a span of an year considering the competitors existing in the market are big players, some of them with their own internet and cloud services backbone to rely on.
Facebook went public with an IPO in May 2012 and contrary to the expected rise, the image of Facebook took a hit and its share prices plummeted. Facebook has been devising tough strategies since then for a robust growth of its business model and focus areas. Facebook, some time ago bought the Microsoft mobile and online ad platform that measures the effectiveness of ads on Facebook.
Twitter on the other hand, that delayed its IPO earlier this year to avoid market pressure and is doing good in its own right. The twitter ad revenue is expected to approach $1 billion by 2014. The major fuel for the churning of ad based money would be the mobile platform. The handheld device revolution has made customers open to the idea of online based shopping and browsing. This made e-commerce boom and that in turn has made the Facebook-Twitter like ad agencies a viable option for business.
The market is still controlled a great deal by Google, with ad-Sense and ad-Words. Google commanded 53.17% share of market this year. Google’s search usage and tremendous monetization of YouTube through ads (which is rather irritating for the user that misses the traditional ad free interface) leads to Google being the leader. The monetization model is further supplemented by an amazing outreach and a loyal internet community.
Image Courtesy | mashable