PREFACE
New research shows that Alphabet Inc. (NASDAQ:GOOGL) has actually surpassed Facebook Inc. (NASDAQ:FB) in the app-install advertising business, marking one of the only times ever that Google has caught Facebook Inc. from behind.
STORY
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 Inc. has actually caught Facebook Inc.
IT HAPPENED
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 Inc. 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 Inc. was well behind Facebook Inc. in this race -- and no one has ever really caught Facebook Inc. 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 Inc. is the leader in all things mobile, it turns out that Alphabet Inc. is in fact still the leader. But there's problem. Check out this chart, also from Statista:
While Alphabet Inc. has the lead, the problem is the direction. Facebook Inc. 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 Inc. 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 Inc. (NASDAQ:FB) or Alphabet Inc. (NASDAQ:GOOGL) stocks at the time of this writing.
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