Yahoo! Inc. To Overtake Twitter Inc In Mobile Ad Sales In 2015

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Twitter Inc (NYSE:TWTR) will likely lag behind Yahoo! Inc. (NASDAQ:YHOO) in mobile ad share by 2015, according to research firm eMarketer. The research firm stated that the micro-blogging site will have 3.69% of the U.S. mobile ad market share by 2015, compared to 3.74% for Yahoo.

Facebook, Google way ahead

However, both Yahoo and Twitter are nowhere near being the top two players. According to eMarketer, Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) and Facebook Inc (NASDAQ:FB) will account for 35.17% and 16.68% of the U.S. mobile ad market in 2015, respectively.

A few months ago, Yahoo reported third-quarter mobile sales of $200 million, which equaled 17% of its total revenue. Yahoo is making big investments in mobile technology and recently acquired mobile ad network Flurry to compete with rivals like Twitter, Facebook, and Google. According to eMarketer, the internet firm’s mobile display advertising is expected to witness a higher growth rate compared to its mobile search business, which is the company’s strongest segment currently.

Twitter has been on the weak side when it comes to investors’ confidence due to sluggish user growth, which is why the company is adding new features. Monthly active users surged to 23% in the third-quarter, a drop from the 24% growth rate in the previous year. CEO Dick Costolo has reshuffled their top line management, showing exit doors to the chief operating officer and appointing a new chief financial officer and head of products.

Twitter makes efforts

However, to accelerate user growth, Twitter has come up with many new plans, including offering more personalized experiences to users by collecting their data. In order to improve the content it shows, Twitter has decided to collect information on other apps used by users on their mobile devices.

Recently a research report from Morgan Stanley claimed Twitter has an impressive line-up of ad products and technology, which the company exhibited during its analyst day. Analyst Benjamin Swinburne of Morgan Stanley suggested that Twitter’s the ad products are luring in advertisers. Additionally, he said the micro-blogging site’s products offer a higher ROI. According to Swinburne, during the analyst day, Twitter successfully elaborated on its plans for MoPub, Fabric and Crashlytics and how it will bring value to developers and position Twitter in mobile advertising.

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