Google alone commands around 15% of the world’s media advertising revenues, an extraordinary figure. Facebook is the second-largest media owner, according to a recent analysis, itself capturing about 5% of worldwide media ad spend. How are they doing so well? They’re monetizing their audiences better than other online properties, per estimates from Ampere Analysis.
In the fourth quarter of 2016, Ampere estimates that Google raked in almost $7 ($6.70) per monthly active user from advertising on its sites. That’s up from $6 per user a year earlier, and from $5.10 per user in the first quarter of 2015.
Facebook’s not too far behind, though – and it’s sporting much faster growth. With $4.70 per monthly active user in advertising revenue in Q4 2016, Facebook has more than doubled – from $2.30 – its Q1 2015 average revenue per user (ARPU). That’s what leads to earnings releases such as the one from earlier this week, when Facebook reported a 51% year-over-year increase in ad revenues (which was actual quite moderate for them). For context, ad revenues increased at a rate 3 times faster than the growth in monthly active users (17%). Read the rest at MarketingCharts.com.
The e-Strategy Academy covers all aspects of digital marketing including search optimization & marketing, email marketing, social media marketing, video marketing, mobile marketing & public relations.