Tag: mobile ad revenues

According to Marissa Mayer, these advertisements could reach the $1.2 billion mark in 2014.

The CEO of Yahoo, Marissa Mayer, has finally now spoken about it’s the company’s mobile ads and has stated that their offerings have become “meaningful”, which is good news as a part of the top exec’s long delayed turnaround strategy.

That said, it remains far too early to know whether or not the strategy will work over the long term.

The third quarter earnings report has now been released by Yahoo, offering some hope to the company that has experienced a long series of quarters in which revenues have only continued to fall. Finally, this time, it experienced sales growth as well as a profit that was even higher than expected, driven by the rise in the sale of mobile ads. Mayer released a statement with regards to the third quarter performance in which it was explained that there was over $200 million in mobile revenues within the last quarter.

The mobile ads sales that have been brought in this year, so far, make up $1.2 billion at Yahoo.

The mobile revenues currently make up 17 percent of the company’s total revenues. That said, analysts have reported that for the full year, total revenues will be $4.3 billion, which means that the mobile ads sales will have made up over a quarter of that figure. In Mayer’s statement, she said that “We have invested deeply in mobile and we are seeing those investments pay off.” She added that “Not only are our mobile products attracting praise and engagement from users and industry awards, they are generating meaningful revenue for Yahoo.”

The company reported that it had experienced a profit of 52 cents per share, which was higher than had been anticipated. This was before the stock compensation cost and didn’t include the $6.3 billion in proceeds that it brought in from the sale of its Alibaba shares. It represented a massive rise from the same time last year, when it had been at 34 cents. Considering that Wall Street had predicted a profit of 30 cents, it is clear that the company performed far better than anticipated. Moreover, the revenues after having subtracted the payments made to its website partners for traffic increased by 1.5 percent to reach $1.09 billion. Analysts had been predicting a decline of 3 percent.

Mobile ads to become more plentiful, according to eMarketer projections

Mobile advertisements are already in high supply, but they may soon become even more plentiful according to projections from eMarketer, a market research and digital media firm. The firm notes that more companies are putting focus on reaching mobile consumers. The best way to do this, of course, is through mobile advertisements that can be found in applications and websites that are optimized to be viewed on a mobile device. eMarketer expects the mobile ad market to become much more valuable in the coming year due to the increased interest companies have in reaching mobile consumers.

Mobile ad market to triple by end of 2012

According to eMarketer, the mobile ad market will triple in value by the end of 2012, reaching the $4 billion mark. Facebook, Google, and Twitter are cited as being powerful forces behind the growth of mobile ads. These companies offer ad space to others and each boasts of a massive reach in terms of consumers. Google alone is expected to bring in more than $2.2 billion in mobile ad sales this year. eMarketer predicts that Facebook will see $339 million in revenue from its recently launched mobile advertising venture.

Market to reach $21 billion by 2016

eMarketer predicts that mobile ad sales will exceed $7 billion in 2013, with sales reaching nearly $21 billion by 2016. Businesses are intent on reaching consumers through their mobile devices because more consumers have access to smart phones and tablets. These consumers tend to use their mobile devices in their daily lives, thus creating an opportunity for businesses to be in constant contact. Mobile device penetration has yet to show signs of slowing down, so the mobile ad market is poised for aggressive growth in the future.

Retailers are strong advocates for mobile advertisements

Though the mobile ad market may have a bright future, it currently only represents some 2% of the advertising market overall. By 2016, eMarketer predicts that mobile ads will take up 11% of the market. Retailers are among the most prolific companies that make use of mobile ads and these companies have seen strong gains from their engagement with mobile consumers in recent years.