Telecom Lead India: Mobile publishers — Facebook, Pandora, and Twitter — are grabbing mobile display advertising revenue that was dominated by Google and Apple earlier.
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 percent of U.S. mobile display ad spending in 2012, compared to the 39 percent they received in 2011, IDC said.
IDC says the mobile display advertising market in the United States used to be dominated ad networks such as Google, Millennial Media, and Apple.
Global mobile advertising revenue will reach $11.4 billion in 2013, up from $9.6 billion in 2012. Revenue will reach $24.5 billion in 2016 with mobile advertising revenue creating new opportunities for app developers, ad networks, mobile platform providers, specialty agencies and communications service providers, said Gartner in a January 2013 report.
“The mobile advertising market took off even faster than we expected due to an increased uptake in smartphones and tablets, as well as the merger of consumer behaviors on computers and mobile devices,” said Stephanie Baghdassarian, research director at Gartner.
Interestingly, growth in mobile advertising comes in part at the expense of print formats, especially local newspapers, which currently face much lower advertising yields as a result of mobile publishing initiatives.
Karsten Weide, vice president of Media & Entertainment at IDC, said: “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.”
IDC says mobile advertising spending in the United States grew 88 percent in 2012 (down from 125 percent in 2011) to $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.
Gartner says geographical regions will also evolve at a different pace and in different directions. Large adoption of handsets for digital content consumption in Japan and South Korea has given the Asia/Pacific region an early lead in mobile advertising worldwide.
High-growth economies of China and India are expected to contribute increasingly to mobile advertising growth, as their expanding middle classes present attractive markets for global and local brands.
However, North America and Western Europe will close the gap on Asia/Pacific as the mobile channel gets more and more integrated with 360-degree advertising campaigns, eating up budgets historically allocated to print and radio.
