For mobile advertising networks, era of dominance is over
TweetFollow Us on Twitter

For mobile advertising networks, era of dominance is over

Mobile publishers such as Facebook, Pandora, and Twitter are rapidly taking over the mobile display advertising market in the United States.

Where in past years, ad networks such as Google, Millennial Media, and Apple received most of the spending on mobile display ads, now publishers control the segment, thanks to very strong sales growth in the past year. Facebook, Pandora, Twitter, and The Weather Channel all registered strong sales in 2012 and all (with the exception of Pandora) popped onto the scene from zero sales in 2011. As a result, publishers controlled 52% of U.S. mobile display ad spending in 2012, compared to the 39% they received in 2011. This is one of the results from a newly published report from the International Data Corporation (IDC) research group (www.idc.com).

"Mobile ad networks are losing market share to publishers, and we expect them to lose even more going forward," says 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."

Additional findings from IDC's U.S. mobile advertising report include the following:

° 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 US$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).

° 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%.

 
AAPL
$126.46
Apple Inc.
+0.05
GOOG
$567.25
Google Inc.
-8.08
MSFT
$42.28
Microsoft Corpora
-0.83
MacNews Search:
Community Search:
view counter

view counter
view counter
view counter
view counter
view counter
view counter

Take a First Look at NaturalMotion’s Daw...
NaturalMotion has released a preview of their upcoming title, Dawn of Titans. Dawn of Titans immerses you in a world of fantasy as you build your kingdom, raise an army, and capture territories. The focus on this epic action strategy game was the graphics. The game uses proprietary engines called Echo and the Morpheme animation engine to render... | Read more »
GDC 2015 – Warfriends is Something Famil...
GDC 2015 – Warfriends is Something Familiar That’s Also a Little Different Posted by Rob Rich on March 6th, 2015 [ permalink ] About Fun‘s upcoming Warfriends is quite the interesting hybrid. | Read more »
Bored? MyLeisure FreeTime Maximizer Will...
Bored? MyLeisure FreeTime Maximizer Will Take Care of That! Posted by Jessica Fisher on March 5th, 2015 [ permalink ] iPhone App - Designed for the iPhone, compatible with the iPad | Read more »
New Publisher Allstar Games Heads West w...
Allstar Games has announced its first mobile title designed for western audiences, Allstar Heroes. The game will be a massive online battle arena (MOBA) that offers dozens of heroes for you to collect and pit against your opponents. As each hero has a different set of powers, you can create a complex strategy in choosing who goes on your team.... | Read more »
RAD Boarding Review
RAD Boarding Review By Jennifer Allen on March 5th, 2015 Our Rating: :: NEARLY RADUniversal App - Designed for iPhone and iPad RAD Boarding isn’t quite one of the greats, but it has potential.   | Read more »
Presenting the International Mobile Gami...
11th Annual International Mobile Gaming Awards ceremony, hosted by actress Allison Haislip, gathered mobile game developers and publishers from around the world. They chose 13 winners out of the 93 nominations. British studio USTWO won the the Grand Prix for their innovative puzzler, Monument Valley. The rest of the winners were: | Read more »
AG Drive Review
AG Drive Review By Tre Lawrence on March 5th, 2015 Our Rating: :: FUTURISTIC STREET RACING.Universal App - Designed for iPhone and iPad Futuristic racing… interstellar style.   | Read more »
GDC 2015 – Nightmare Guardians is an Int...
GDC 2015 – Nightmare Guardians is an Interesting Hybrid of MOBA and Lane Defense Posted by Rob Rich on March 5th, 2015 [ permalink ] I have to say that lane defense (i.e. | Read more »
Overkill 3 Review
Overkill 3 Review By Tre Lawrence on March 5th, 2015 Our Rating: :: WHO'S NEXT?Universal App - Designed for iPhone and iPad Cover system gameplay in the third-person.   Developer: Craneballs Price: Free Version Reviewed: 1.1.6 Device Reviewed On: iPad Mini 2 | Read more »
Warner Bros. Interactive Entertainment A...
Warner Bros. has some exciting games coming down the pipe! | Read more »
All contents are Copyright 1984-2010 by Xplain Corporation. All rights reserved. Theme designed by Icreon.