Mobile ad dollars will reach USD 6 billion by end 2012
As published on GoMo News, Mobile Marketing Watch, DigitalJournal.com, Yahoo News, Mobile Marketing Quest:
Dale Carr, CEOofLeadbolt, a top advertising, content locking gateway and monetization platform for mobile and online, says that mobile ad sales will soar in the coming year reaching $6 billion by the end of 2012, with mobile and tablet ad delivery taking priority over online increasingly. Carr predicts 5 – 10% of next year’s buys will pull from online budgets and shift towards mobile.
“There are now more mobile devices being shipped than computers, and as mobile technology advances and becomes more sophisticated, consumers will prioritize handheld and tablets above laptops and netbooks. Equally sophisticated ad delivery methods encompassing these devices are hence becoming critical considerations for media buyers looking to enhance return on their digital ad spend,” Carr said.
“With 2011 mobile ad revenues expected to double from 2010 to over $3.3 million, we’re going to continue to see advertisers and publishers shift more attention to these platforms aiming to reach the always-on-the-go consumer.”Carr takes this statement further – projecting that accessing mobile based content will become more of a monetization opportunity given that application stores on Apple and Android are already serving 20 billion downloads. Separately, recent entrants RIM and Microsoft are increasingly contributing to those numbers. While Android holds greater U.S. market share than Apple (36% vs. 26%), Carr believes 2012 will be Android’s year to make a global play and will likely outship Apple given Android currently achieves a 4.4% weekly growth.
Carr does note however the incredible growth of mobile spend will not be at massive expense to online ad markets, it will rather be as a compliment due to the small magnitude. “With only $3.3 billion in revenues for this year alone, mobile represents less than 5% of online revenues. There will certainly be a move as brand marketers look to allocate more dollars to mobile but only by 5-10%. Until companies truly understand the unheralded opportunities on mobile, no dramatic spend shift will occur from online to mobile. We will continue to see great revenues in online advertising with mobile being complimentary rather than competitive, contributing to an overall greater digital ad spend across the media.”