Mobile Search & Ads Goes Hand in Hand
Marketers spent $2.8 billion in 2012 on mobile search ads, compared with $1.6 billion in 2011 and $0.7 billion in 2010. Growth rates have slowed significantly, down from 195% in 2010 to 127% in 2011 to 68% in 2012. Google still dominates the market with gross revenue of $2,166 million, and a gross market share of 79%.
IDC’s U.S. recently published a mobile advertising report with some interesting findings;
- Strong growth in mobile advertising spending in the United States continues, even if annual growth rates continue to decline: the market grew by 88% in 2012 (down from 125% in 2011) to a total of $4.5 billion (up from $2.4 billion in 2011). Mobile market share within all digital advertising reached 11% in 2012, up from 7% in 2011. For 2013, IDC expects a growth rate of 55–65%, with spending coming in around $7 billion, for the United States.
- Mobile display advertising has increased its market share of total mobile spending by no less than 8 percentage points to 39%, versus 61% for search ads, in 2012. Mobile display ads attracted $1.7 billion in 2012 compared with $0.7 billion in 2011. Growth rates have picked up again in 2012 after a dip in 2011. They were at 134% in 2010, 118% in 2011, and 132% in 2012.
- Among mobile publishers selling display advertising, Facebook was the number 1 company in 2012 ($234 million gross revenue), followed by Pandora ($229 million) with Twitter coming in third ($117 million). In the ad network segment, not much has changed. Google still holds the top spot ($243 million). One change is that Millennial Media ($151 million) has taken over Apple ($125 million) to claim the number 2 spot. Jumptap remains number 4 ($90 million).
Karsten Weide, Vice President of Media & Entertainment at IDC.
Networks, especially independent ones, are entering a difficult phase, in which, with an ever smaller share of revenue, they’ll have to compete with publishers, which will only grow in strength.
Tor Olav Haugen, CEO in ThumbAd.com;
Networks must rethink their approach vs Publishers and Advertisers. Without delivering added value at eCPM, Ad Inventory or CTR I´m afraid many Ad Networks will loose market-shares. ThumbAd has a proven model to meet the supply and demand in the market adding substantial value to both Publisher and Advertiser.
AboutThumbAd.com is the owner of a successful and innovative Mobile Advertising Platform. The company monetizes, add value and deliver additional advertising revenue to Publishers, and offer a unique expertise for Advertisers. The Company delivers Better Mobile Click Through Rates by Contextual Relevancy and Real Time Targeting. The company’s web site contains additional information. ThumbAd has office in Oslo, Stockholm, Turku, Moscow and Irvine. For more information please JoinUs@ThumbAd.com.
About ThumbAd.comSimply better digital advertising by Cross-device!
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