Mobile is On the Move

Us Mobile Ad Spending Soars Past Expectations


Expected to grow rapidly in 2012, US mobile ad spending growth is already exceeding the fast pace predicted by leading industry analysts. Driven in large part by Google’s mobile search advertising business, US mobile ad spending is now expected to reach a whopping $2.61 billion in 2012, an increase of 80% over 2011. This represents are revised forecast set out by eMarketer just months ago which projected US mobile advertising spending would increase 47% over 2011 to $1.8 billion in 2012. The growing roster of mobile ad networks including Google AdMob, Apple’s iAd, and Millennial Media, in addition to the influx of new market data has allowed eMarketer to revise their projections upward for 2012.

According to Noah Elkin, eMarketer principal analyst, the most significant adjustment in the mobile ad spending forecasts was a result of Google’s stellar performance in the mobile advertising arena. Their success has moved the industry forward far faster than was previously expected.

“Google has translated its dominance of overall online and desktop search advertising into dominance of mobile search and mobile advertising at a rapid pace,” said Elkin. “Given the pace of this market’s expansion, eMarketer’s estimates for mobile search may still be on the conservative side.”

Google’s dominance in the mobile ad industry includes:

  • 51.7% estimated share of overall US mobile ad revenues in 2011 or approximately $750 million
  • 95% estimated share of all US mobile search ad revenues
  • 24.8% share of total US mobile display revenues in 2011 or $127.5 million dollars

The other major players in the mobile ad spending industry are Apple’s iAd and Millennial Media. This is a look at their share of market.

  • Apple iAd’s share of US mobile ad revenues: 6.4% or $92.4 million in revenue
  • Millennial Media’s share of US mobile ad revenues: 6.3% or $90.9 million in revenue
  • Apple iAd’s share of US mobile display revenues: 18% or $92.4 million in revenue
  • Millennial Media’s share US mobile display revenues: 17.7% or $90.9 million in revenue

It is estimated that mobile display ad spending will grow at an impressive 93.5% rate to $861.7 million in 2012. Mobile video spending is also expected to see a significant increase up to $151.5 million, a 122% increase over 2011. While mobile messaging is expected to decline in favor of mobile display, video, and search, it will still be a popular and vital medium for marketers who communicate with customers for media couponing, loyalty, and customer care campaigns.

If your company hasn’t yet ventured into the mobile advertising arena, now is the time to start. Call Qiigo today to find out how we can get you started on an exciting new mobile advertising campaign. Call 404-496-6841.

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