CHICAGO, March 27, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Google Inc. (Nasdaq:GOOG-Free Report), Facebook, Inc. (Nasdaq:FB-Free Report), Marin Software Inc. (NYSE:MRIN-Free Report), Yelp, Inc. (NYSE:YELP-Free Report) andAmazon.com Inc. (Nasdaq:AMZN-Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday's Analyst Blog:
Mobile Advertising: New-Age Money Minter?
According to the latest data from independent market research firm eMarketer, mobile advertising spending in 2014 is likely to continue moving north after more than a two-fold increase last year. A paradigm shift is observed in the digital marketing industry as mobile ad spending is expected to hit $31.5 billion in 2014, an increase of 75.4% over the prior year. This follows a staggering 105% increase in 2013 to $17.96 billion.
The overall number of smartphone users across the world is predicted to surpass 1.75 billion in 2014. Advertisers thus feel the need to remain visible on the always-on always-there platform to gain a top-of-the-mind brand recall.
An August eMarketer research report claimed that the adult U.S. population spent 19.4% of their time on mobile devices compared to 19.2% on computers. This has led to a mad rush among advertisers for a bigger piece the market pie. Subsequently, mobile advertising has suddenly become the money-vending machine in the advertising industry.
The Undisputed Leader
With a 49.3% market share in the mobile ad industry in 2013, Google Inc. (Nasdaq:GOOG-Free Report) is the undisputed leader in its category. Although its market share declined from 52.6% in 2012, the company still has a sizable lead over its nearest competitor, Facebook, Inc. (Nasdaq:FB-Free Report). With targeted ad models like Enhanced Campaigns and Product Listing Ads that feature product information without requiring additional keywords, Google has held on to its lead position through increased click share on mobile throughout 2013.
According to a report by Marin Software Inc. (NYSE:MRIN-Free Report), mobile devices are expected to account for almost half of Google paid search clicks by Dec 2015. This offers a lucrative option for advertisers as the average U.S. click-through rate (CTR) of smartphones and tablets were respectively reported to be 64% and 18% higher than the average desktop CTR. The conversion rate of search ads on mobile devices in the U.S. also enjoyed a significant improvement in 2013, with the respective tallies for smartphone and tablets increasing 57% and 67% year over year.
However, despite a competitive advantage, Google is facing headwinds as users gradually begin to visit specific apps from Yelp, Inc. (NYSE:YELP-Free Report) or Amazon.com Inc. (Nasdaq:AMZN-Free Report) to find product information rather than using its search queries. This has probably eroded its market share and eMarketer forecasts Google's stronghold may dip further to 46.8% in 2014.
The Challenger
From a paltry 5.4% market share in 2012, Facebook has taken rapid strides to garner 17.5% market share in 2013. As consumers largely shifted toward mobile devices, the social media giant began to subtly place ads directly into users' news feeds. Thus, they could sell more mobile-native products like ads that let users install a new app with just a few clicks.
This quickly translated to faster money and mobile ad revenues increased from 11% of the total revenue in 2012 to 45% in 2013. This played a huge role in boosting the share prices to newer highs with the current year-over-year return hovering at a healthy 157.4%.
With 1.23 billion monthly active users and 757 million logins on a daily basis at year-end 2013, Facebook offers a large platform to advertisers to reach a wider audience.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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