Forecasts Predict Mobile Advertisement Spending to Increase

As technology continues to advance, the number of individuals who own and use a mobile phone a regular basis continues to advance as well. And, with such a huge growth in the use of mobile phones around the world, mobile advertisement spending is expected to grow as well, surpassing about $2.6 billion throughout this year of 2012. This information was provided by eMarketer. Mobile advertisement spending has already doubled within just the past few years. Each year it continues to grow and it is expected to increase by billions this year as well.

The company that provided this information, eMarketer, has estimated that the mobile advertisement spending in the United States was at about $1.45 billion during 2011. With this amount, it shows that there has been an 89 percent increase from the previous year of 2010. And, with that said, the advertisement spending on mobile devices will continue to grow by 80 percent throughout 2012, reaching $2.61 billion.

Noah Elkin, the principal analyst at eMarketer, has said, “Right now there are many researchers out there looking at nearly the same empirical data about the mobile marketplace and drawing completely disparate conclusions.” Elkin also says, “In order to form the most complete picture possible about the mobile ad market, we think it’s essential to evaluate multiple information sources—rather than a single dataset—especially as the market remains immature.”

Google is currently dominating the mobile display advertisement sector with its AdMob, reaching $127.5 million in advertisement revenue from last year alone. This would be a share of nearly 24.8 percent when I came down to the overall mobile ad revenue in the United States. Apple’s iAd platform took second place, with 6.4 percent share and generating $92.4 million of advertisement revenue throughout 2011.

As the market begins to double, these numbers could actually change at any given moment. However, as Android is currently dominating the market, it is possible that Google’s shares of mobile advertisement revenue will be consistent with its domination of mobile phones as well, as it is constantly beating Apple and Millennial. Elkin says, “While Google remains a leader in mobile display, it’s too early to call the race.” Elkin also explained, “Both Apple and Millennial have healthy, $90-million-plus US businesses, while companies with larger international footprints such as InMobi, Amobee, and JumpTap shouldn’t be discounted either.”

As of right now, the ad share for the Google Incorporation is at about 51 percent. Google has been working to expand its reach, making several improvements, especially when it comes to ad placement. Both Millennial Media and Apple are not in the mobile search ad space right now but within the next year, who knows what could possibly occur. Really, it could be anyone’s race.