Yahoo set to overtake Twitter in mobile ad race

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Marissa Mayer: the chief executive of Yahoo
Marissa Mayer: the chief executive of Yahoo

Yahoo's US mobile ad revenues will account for 3.74% of the total U.S. mobile advertising market in 2015, eMarketer reports

Yahoo’s U.S. mobile advertising revenues are poised to overtake Twitter’s in 2015, making the tech giant a viable player in the highly competitive market, according to a forecast from eMarketer.

Yahoo reported its mobile revenues for the first time in the third quarter of 2014 and will take nearly 3.2% of the $18.99 billion US mobile advertising market in 2014.

Emarketer predicts that in 2015, Yahoo’s US mobile ad revenues will jump from 3.2% to 3.74% of the total U.S. mobile advertising market. This would push Yahoo past Twitter, which is predicted to have a 3.69% share in 2015. 

U.S. mobile ad spending will grow 50% next year to $28.48 billion and another 41% to $40.16 billion in 2016, according to the forecast.

Despite the robust growth, Yahoo still faces many challenges in mobile. 

"Yahoo’s growth in mobile is a very positive development for them as they try to play catch-up, but these revenues are growing from a small base, and Yahoo’s overall ad business is still struggling," said Martin Utreras, senior forecasting analyst at eMarketer in a statement. 

"They’ve trailed their competitors while taking a long time to monetize mobile, and these revenues are still muted in relation to the size of their mobile audience," he said. 

While Yahoo is gaining a foothold in the mobile ad space, eMarketer predicts a rush of new entrants into the market next year, which could also eat into Facebook and Google’s dominant share.