YORK — Following explosive entrances by Facebook and Twitter into the
marketplace, as well as a strong performance from Google, U.S. mobile
advertising spending grew 178 percent last year to $4.11 billion,
according to a new forecast by eMarketer. Spending, the firm said, is
expected to rise a further 77.3 percent to $7.29 billion in 2013.
a nearly fivefold increase in spending since just 2011 and includes ad
dollars spent on display, search and messaging-based formats sent to all
mobile devices, including tablets. By 2017, eMarketer projects U.S.
advertisers will devote $27.13 billion to mobile — just less than 45
percent of all digital ad spending and 13.8 percent of total media ad
spending that year.
Based on year-end reporting from several major
mobile publishers — along with estimates from other sources, including
research firms and eMarketer interviews with ad agency executives —
eMarketer revised its estimate for 2012 spending only slightly upward
from the previous forecast in December 2012.
figures were relatively unchanged since the previous forecast, there
were some small adjustments in market share and revenues for some of the
larger players following Q4 results.
Google, thanks to its
dominance of the mobile search market and strong showing in mobile
display, is by far the largest player in the space with 93.3 percent of
U.S. net mobile search ad dollars going to the company last year.
Overall, more than half of total U.S. mobile ad revenues will go to
Google this year, and its share will grow by nearly 3 percentage points
eMarketer believes further mobile monetization of YouTube
will contribute the lion’s share of incremental growth to Google’s
mobile display revenues, while search ad revenues will continue to rise
Facebook, the No. 2 mobile ad publisher in the country,
accounted for 9.5 percent of mobile ad revenues in 2012 and is expected
to take 13.2 percent this year. In the mobile display market, however,
Facebook is on top, projected to grab nearly three in 10 dollars this
year. eMarketer revised Facebook’s share of US mobile display
advertising ad revenue upward by several percentage points after fourth
quarter results came in higher than previously expected.
and Pandora round out the top three mobile display slots, with Twitter —
whose figures were also significantly increased in the new forecast —
making a strong push for the fourth spot. The microblogging service took
in 7.3 percent of net U.S. mobile display ad revenues in 2012, the
first year it offered such ads.
Both Facebook and Twitter have
benefited from their use of so-called native ad formats that are
seamlessly integrated within the core user experiences of their
respective products. The resulting ability for both companies to deliver
mobile ad impressions at much higher volume than many traditional ad
publishers has helped them capture market share very quickly.
most significant adjustment in the new forecast is a downward revision
to Millennial Media’s mobile display ad revenues and market share for
2012 through 2015. The company’s traffic acquisition costs (TAC) paid to
partners and ad publishers are not expected to fall in the next few
years, as eMarketer previously believed. Millennial will take an
estimated 2.8 percent of U.S. mobile display revenues this year,
excluding TAC. Apple will come in slightly higher at 6.3 percent,