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December 18, 2012

Mobile advertising to top $4bn this year

Mobile US advertising is expected to rise 180% this year.

By Tineka Smith

A report by eMarketer that US mobile ad spending has skyrocketed, with a large majority attributed to ad formats like Facebook’s newsfeed ads and Twitter’s promoted products.

"These products represent a seamless experience across platforms for consumers- which means platform owners are able to successfully earn revenue as consumers continue to increase time spent on mobile devices with smaller screens unsuited to the bulk of desktop display advertising inventory," said eMarketer.

eMarketer predicts that overall spending on mobile advertising will rise 180% this year to reach $4bn.

Mobile ad growth

Previously, the firm had predicted the US mobile advertising market would only growth 80% to just $2.61 bn. Now, eMarketer says that US mobile ad spending is likely to reach $7.19bn next year and nearly $21bn by 2016.

Facebook’s third quarter mobile performance is said to be the reason the mobile advertising market has grown so quickly.

The social network offered no mobile ad opportunities at the beginning of 2012 but grew its mobile ad platform quickly throughout the year.

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Before Facebook’s Q3 earnings announcement most analysts had predicted mobile U.S ad revenues of only $54-100m.

Emarketer predicts that Facebook US mobile ad revenues could hit $339m this year.

Google also outdid expectations of its mobile ad growth and the company is set to control over half of the US mobile ad market by the end of the year.



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