Mobile advertising WAS controlled by Google and Apple and other ‘mobile ad networks,’ but not any more!
Google still dominates the market with gross market share of 79%, but Twitter is coming at ‘cha Google Monster. Let the turf wars begin!
According to a report by IDC, “mobile publishers like Facebook, Pandora, and Twitter are gaining control over the display advertising market,” snagging 52% of the mobile advertising space that Google and others previously controlled.
“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.”
Marketers spent $2.8 billion in 2012 on mobile search ads, compared with $1.6 billion in 2011 and $0.7 billion in 2010 – but is it smart money? According to Sephi Shapira, CEO of MassiveImpact, a leading performance mobile advertising company – yes, it is.
“In 2012 global iOS and Android users spend 43% of their app usage time playing games from thousands of different developers many of which are turning ad funded games as their core business model,” says Shapira. “The potential for in app ad revenue growth is immense, especially with traditional pay-per-click banner placement model being replaced by more effective models such as real time performance.”
Based on its findings, IDC expects a growth rate of 55–65%, with spending coming in around $7 billion, for the United States – and there’s more: 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.
- 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).
If you’re not advertising on Twitter yet, now may be the time to start!
(Mobile targeting image from Shutterstock)
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