Skip to main content

American Mobile Advertising will Reach $7B in 2013

A new group of publishers are rapidly taking over the mobile display advertising market in the United States. Where in past years, advertising networks -- such as Google, Millennial Media, and Apple -- received most of the spending on mobile display ads, now individual publishers control the segment.

Facebook, Pandora, Twitter, and The Weather Channel all registered strong sales in 2012 -- most of them started from zero sales in 2011.

Publishers controlled 52 percent of U.S. mobile display ad spending in 2012 -- that's compared to the 39 percent they received in 2011, according to the latest market study by International Data Corporation (IDC).

"Mobile ad networks are losing market share to publishers, and we expect them to lose even more going forward," said 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 the IDC study include:
  • Strong growth in mobile advertising spending in the United States continues, even if annual growth rates continue to decline: the market grew by 88 percent in 2012 (down from 125 percent 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 percent in 2012, up from 7 percent in 2011. For 2013, IDC expects a growth rate of 55–65 percent, 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 percent, versus 61 percent 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 percent in 2010, 118 percent in 2011, and 132 percent 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 percent in 2010 to 127 percent in 2011 to 68 percent in 2012. Google still dominates the market with gross revenue of $2,166 million, and a gross market share of 79 percent.

Popular posts from this blog

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

Contact Center as a Service Gains AI Benefits

Enterprise leaders with large customer care organizations are exploring Artificial Intelligence (AI) applications to improve their online customer experience, increase operational efficiency, and reduce costs to improve profitability. Trained AI can be used to automate tasks, such as answering routine questions, freeing up contact center agents to focus on more complex inquiries. AI can also be applied to personalize the customer experience by recommending new offerings. Additionally, AI can be deployed to analyze vast amounts of existing customer data to identify support trends and patterns, which can be used to improve the overall customer experience. Customer Care AI Market Development Worldwide Contact Center (CC) and Conversational AI, including virtual assistant end-user spending is projected to total $18.6 billion in 2023 -- that's an increase of 16.2 percent from 2022, according to the latest market study by Gartner. "Near-term investment growth rates for CC and CC Con