As Facebook defies investor pessimism and announces a banner quarter, what other players in mobile advertising stand to gain?Facebook’s stock is up around 5% today after announcing impressive results yesterday. Sales grew 72% year-on-year, with profits tripling. Investors were buoyed in particular by Facebook’s maturing as a digital ad company, particularly in mobile.
According to the Wall Street Journal, Facebook’s share of the $120B global digital ads market grew from 4.1% in 2012 to 5.8% in 2013. Its share of mobile ads grew from 5.9% to 7.4%, and marketing research firm eMarketer expects this to grow to 10% in 2014. Encouragingly, Facebook’s mobile ads now representing 59% of the company’s ad revenue, from 30% just a year ago.
What other companies will benefit from this rising tide? We tapped DataFox’s semantic clustering engine to identify the top 25 private companies with “mobile advertising” exposure. Six key industry clusters were revealed:
Mobile Advertising - who are the players?
- Mobile Ad Networks: design, place and measure mobile ads. Example: InMobi
- Online Marketing: manage businesses’ online presence and coordinate ad spend. Example: Yodle
- Advertising Software: manage ad slots for content providers. Example: Wide Orbit
- Personalization: ad customization and personalization. Example: MyBuys
- Mobile Deals: coupons and social commerce. Example: Living Social
- Music Platforms: music content delivery. Example: Spotify
Looking at the newcomers in the space (founded post-2009), a common thread is cross-platform automation:
- Viglink: monetization of content-driven commerce across properties
- RadiumOne: automated media-buying across platforms
- UberMedia: cross-screen mobile advertising
- SessionM: cross-platform engagement optimization
Who and Where? Bessemer and San FranciscoWhat else can we infer about this group of 25 rising stars? Bessemer Venture Partners is the most prolific investor in the space, with investments in Millennial Media, Yodle, Involver, and Grow Mobile. Perhaps as a signal that mobile advertising is more reliant on technology than media, San Francisco is the main harbor for these companies, with seven headquarters compared to New York’s two.
- For the complete list of 25 companies expected to gain from the rise in mobile advertising, visit our DataFox watchlist:
Investment Advice Disclaimer
The information contained in this post, while intended to interest investors, does not constitute investing advice or services. Future trends and predictions contained herein are derived from industry news and public information. These “forward looking-statements” are speculative, subject to risks and uncertainties, and are not guaranteed. Actual results may vary. Potential investing decisions should be made by consulting a professional legal, tax, investing or accounting professional, where risks and suitability can be throughly evaluated. DataFox makes no obligation to update or revise any of the statements contained herein.