With Facebook and Google releasing their Q4 2013 earnings just a day apart, we thought now would be a great time to compare the revenue of these two digital advertising behemoths. In the below deck, we’ve outlined the revenues of Facebook & Google over the last year or so, analysing their growth rates comparatively. We’ve also gone a bit further back in order to compare Google’s first 6 quarters post-IPO to Facebook’s to show the difference in growth rate. Whilst 2004 was a very different time to now, this is still an interesting comparison of the two big-players at a similar stage in their developments.
As you can see from the deck, Facebook is out-growing Google at present. Facebook sees much more dramatic fluctuations in terms of it’s performance, but their Q42 2013 results mean that they have grown by 129% in terms of revenue since Q4 2011, as compared to Google’s growth of 49%.
After their IPO in 2004, Google grew by 119% in terms of revenue in the following six quarters, with Facebook growing by 129% in comparison. Facebook is in a particularly strong growth spurt at the moment, with the latest results showing that mobile ad spend was 53% of their total advertising revenue - providing a really strong boost for investors.
Whilst there are a number of other metrics that are massively important in the battle between the two, we’ve focussed on revenue today due to the publication of the earnings reports. Revenue is the ultimate black and white number, and comparing the growth rates of the two shows some interesting comparisons in their development.
* All figures based on Google & Facebook earning calls January 2014. Revenues shown are primarily advertising only revenues.
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