Peer Mobile Monetization

Last week, Facebook’s rival Google (NASDAQ: GOOG) came out with some fairly disappointing numbers, missing on revenue and whiffing on EPS. Earnings for the quarter came in at $9.56, well under the $10.78 consensus. Particularly worrying to investors was the company’s struggle with monetizing mobile ads. As mobile ads are a lot less expensive than traditional advertising, the shift to mobile devices has seen Google’s cost-per-click decline 6% year-over-year. While still the biggest name in mobile advertising, with over 50% of the market share, Google is putting a lot of work into enhancing revenue from mobile.

Yahoo! (NASDAQ: YHOO) is another company that relies on advertising for a sizable portion of its revenue, and this company too has been struggling with mobile monetization. While the company beat convincingly on earnings, revenue showed a 7% decline as competitors are increasingly eating up Yahoo!’s advertising market share, especially in mobile. As a result, the company has been investing heavily in advertising acquisitions, recently picking up mobile advertising startup Admovate. CEO Marissa Mayer has reaffirmed her commitment to growing in mobile, but it remains to be seen how well Yahoo! manages to capitalize on this segment.

http://beta.fool.com/dujames/2013/07/26/facebook-ramping-up-mobile-monetization/41642/?source=eogyholnk0000001