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.
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