Alphabet Finally Beats FacebookDate Published: 2016-08-24
Author: Ophir Gottlieb
New research shows that Alphabet has actually surpassed Facebook in the app-install advertising business, marking one of the only times ever that Google has caught Facebook from behind.
Venture Beat reported that Google has hit 3 billion app-installs and it has seen its advertising growth from that rip higher. Here is a chart from that article cited above.
Source: Venture Beat
But the story goes further, into the rarest of feats -- Alphabet has actually caught Facebook
BI Intelligence did a great report on this and some of the data we will use comes from that story (linked to above). Here's how it plays out.
Facebook had its "F8" developer conference back in April and it announced 2 billion app installs. According to sources, Google now has 3 billion app installs. What's yet more impressive is that Alphabet was well behind Facebook in this race -- and no one has ever really caught Facebook from behind, until now.
The mobile app advertising revenue world is growing. Here's a chart that shows us the levels for 2013-2015 via Statista.
That's $770 million in 2013 up to $3 billion in 2015. BI Intelligence predicts the market will grow to $7 billion by 2019.
While the headlines will have you believing that Facebook is the leader in all things mobile, it turns out that Alphabet is in fact still the leader. But there's problem. Check out this chart, also from Statista:
While Alphabet has the lead, the problem is the direction. Facebook is seeing substantial growth in market share while Google is seeing shrinkage. That's why this news surrounding the app-install numbers and the revenue from it is so critical. This may be the first time ever that Facebook has shown a chink in the armor. Whether it lasts, we are yet to see, but for now, it's the Google chart that looks better than the Facebook chart -- and that deserves a "wow."
The author has no position in Facebook or Alphabet stocks at the time of this writing.
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