Mobile advertising networks have been losing their market share to mobile publishers such as Facebook, Pandora, and Twitter, which are currently taking over the mobile display advertising market in the US, according to a new report from IDC.
IDC’s new 2012 U.S. Mobile Advertising Market Sizing and Vendor Market Shares report revealed that Facebook, Pandora, Twitter, and The Weather Channel reported strong sales and captured 52% of US mobile display ad spending in 2012, up from 39% in 2011.
IDC Media & Entertainment vice president Karsten Weide said mobile ad networks are losing market share to publishers, and are expected to lose even more going forward.
"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," Weide said.
During 2012, the US mobile advertising market rose 88% to $4.5bn, a drop from 125% in 2011, while mobile market share in all digital ad reached 11%, up from 7% in 2011.
IDC anticipates a growth rate of 55-65% and spending to reach around $7bn for the US in 2013.
US reported 39% rise in mobile display advertising, which generated revenues of $1.7bn in 2012, over $0.7bn generated during 2011.
Content from our partners
Facebook topped the list of mobile publishers selling display advertising by generating $234m gross revenue, followed by Pandora and Twitter.
Within the ad network segment, Google topped the list with $243m revenues generated, followed by Millennial Media, Apple and Jumptap.
During the year, marketers spent $2.8bn on mobile search ads, when compared to $1.6bn in 2011, while growth rates dropped from 127% in 2011 to 68% in 2012, with market being dominated by Google.
