04/05/2017   Richard Broughton
Facebook closes the gap on Google

Following our recent analysis that Facebook is closing the gap on TV advertising, Ampere research suggests that Facebook is also approaching Google. Across the various global online advertising players, Google is closest to TV on the ARPU measure, currently making about $7 each quarter for each monthly active user (MAU) from advertising on its sites. Thus, it really isn't far behind TV, where the average viewer is responsible for between $10 and $11 of advertising revenue per quarter.
 
In contrast, Twitter has been struggling to grow its revenue per MAU, which is fairly stable at about $2. Snapchat has been the big success story of recent quarters. Although it lags other players in terms of revenue per MAU, Snapchat been very active in beginning to monetise its customer base more aggressively. It has increased revenue from practically $0 per quarter per MAU to $0.70 in less than two years.

It may be in second position now, but when it comes to ARPU, Facebook advertising has been rapidly closing the gap on Google’s lead. In Q1 2015, Facebook made $2.3 per MAU. Google made about $5. By the end of 2016, Facebook had more than doubled its number to nearly $5 per MAU in advertising revenue.

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