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US mobile ad spend to reach $2.6B in 2012: study

Millennial Media

Millennial Media's mobile ads for VeeV

Mobile ad spend in the United States is expected to reach $2.6 billion in 2012, according to a new forecast from eMarketer.

The new eMarketer research suggests that mobile ad spend will increase 80 percent from 2011, fueled by the successful mobile ad performance on networks such as Google, Millennial Media and Apple. The research also predicts for the competition among these networks to heat up in 2012 as mobile advertising takes up a larger role in company’s advertising spend.

“There is more information about the direction of the market from key players,” said Noah Elkin, principal analyst at eMarketer, New York.

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“Understanding the strengths of mobile advertisers coupled with the larger trend towards mobile computing means that smartphones, tablets and Web-based activity is driving more search and display impressions,” he said.

Mobile hot spot
EMarketer previously reported that mobile advertising would generate $1.8 billion in 2012 and has adjusted its prediction based on recent announcements from mobile ad networks.

Per eMarketer, Google controls 51.7 percent of U.S. mobile ad revenue, which represents $750 million.

Apple’s iAd network claimed $90 million in revenue in 2011, making up 6.4 percent of the overall market share, and Millennial Media’s network earned 6.3 percent of the mobile advertising network share and $90.9 million.

Other ad networks added up to claim 35.7 percent of overall U.S. mobile ad spend with $517.4 million.

EMarketer predicts that in 2011, Google earned 24.8 percent of mobile display revenue, Apple owned 18 percent of mobile display revenue and Millennial claimed 17.7 percent.

EMarketer’s research combines banner, rich media, video, SMS and MMS advertising.

Going forward, mobile ad spend in the U.S. is on track to rake in $4.3 billion in 2013, representing a 65 percent year-to-year increase.

In 2014, eMarketer predicts that U.S. mobile ad spend will reach $6.46 billion and a 50 percent growth from the projected 2013 numbers.

Additionally, U.S. mobile ad spend is slated to reach $10.83 billion in 2016.

Ad on mobile
The eMarketer research predictions are proof that mobile advertising is one of the fastest-growing segments of mobile and shows that consumers are interacting with mobile ads.

Despite there being a plethora of mobile ad networks, Google, Apple and Millennial have a firm grasp on ad spend, and it will take a substantial shake-up for it to change.

There is no doubt that mobile advertising is increasingly becoming a larger part of brand’s overall marketing spend, but brands need to think of more innovative ways to target consumers with rich media and interactive features.

“Mobile is increasingly becoming a more progressively channel for marketers in terms of how consumers spend their time and engage with content and commerce,” Mr. Elkin said.

Final Take
Lauren Johnson is editorial assistant on Mobile Marketer, New York

Lauren Johnson is associate reporter on Mobile Marketer. Reach her at lauren@mobilemarketer.com.

 
Related content: Research, mobile marketing, mobile, eMarketer, Noah Elkin, research, mobile advertising

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