Why Mobile Ads Are Seen as a Boon to Facebook, But a Plague to Google

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Why Mobile Ads Are Seen as a Boon to Facebook, But a Plague to Google

Why Mobile Ads Are Seen as a Boon to Facebook, But a Plague to Google

Analysts gave Facebook a big thumbs-up this week for its transition to mobile

As the company reported on Wednesday, Mobile ads **w represent 59% of its overall ad revenues, up from 30% in Q1 2013. Brian Wieser, an analyst with Pivotal Research, called it a "monster quarter" for Facebook that was driven largely by growth in mobile

The situation at Google wasn't as sunny. Since Google blamed Mobile for depressing costs-per-click by 9% in the quarter, Mobile was an obvious impetus for missed earnings. Even though Google's ad business grew 16.5% in the quarter, that was less than expected. As Wieser **ted, "erosion was consistent with our general expectations, if worse than we expected, and probably worse than many investors expected too." Read more...

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