The money spent on desktop advertising is expected to decrease this year as Google is shifting focus on mobile growth, says a new study by eMarketer. During the year 2014, revenue from desktop advertising is said to drop by 9 percent or an estimated US$1.4 billion compared to last year, in the US. On the other hand, revenue from mobile search is said to increase by more than 82 percent.
The report points out that desktop search advertising is still more beneficial for advertisers, but the mobile device trend is catching up. This year, one can expect mobile search to be an estimated $9 billion, while more than $13 billion for desktop search. The overall desktop advertising spending is expected to decline by 2 percent in 2014 to an estimated $32 billion.
The report also points out that Google has a huge part to play in the overall shift from desktop to mobile platform. Google earned about three-quarters its search revenue from the desktop last year, and is expected to drop by 66 percent this year.
After a 7 percent decline last year, Google’s advertising revenue from desktop is expected to further decline this year. However, the study points out that in spite of the decline, Google will witness an overall revenue rise due to the swiftly growing mobile advertising.
During the year 2014, eMarketer estimates that Google’s overall revenue from advertising will increase to $43.5 billion from $38.3 billion last year. Google’s search revenue from desktop is likely to decrease from $10.8 billion in 2013 to $10 billion in the US market. On the other hand, the mobile revenue is expected to increase to an estimated $5.1 billion this year compared $3.3 billion last year.
The mobile search revenue growth is owing to Google’s several initiatives such as new advertising tools and Enhanced Campaigns.
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Oct 7, 2015