Yahoo set to overtake Twitter in mobile ad race

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. 



The latest work, news, advice, comment and analysis, sent to you every day

register free