Facebook And Twitter Outrank Google And Apple For US Mobile Display Ads in 2012
by Juli Clover
April 9, 2013
According to a new report from IDC, mobile publishers like Facebook, Pandora, and Twitter are snapping up mobile display advertising market share from ad networks like those run by Google, Millennial Media, and Apple.
In previous years, the aforementioned networks received the lion’s share of spending on mobile display ads, but strong sales growth in 2012 means publishers now control the market, with 52 percent of mobile display ad spending in 2012, compared to 39 percent in 2011.
“Mobile ad networks are losing market share to publishers, and we expect them to lose even more going forward,” said Karsten Weide, Vice President of Media & Entertainment at IDC. “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.”Though networks are getting a smaller piece of the advertising pie, there’s plenty of money to be had. The mobile advertising market grew 88 percent in 2012, reaching a total of $4.5 billion. Mobile now accounts for 11 percent of all digital advertising. Google still reigns supreme with $243 million gross revenue from mobile advertising, while Millennial media snagged $151 million and Apple earned $125 million. As for the publishers, Facebook netted $234 million, Pandora earned $229 million, and Twitter earned slightly less than Apple at $117 million. Apple's iAd program has never been particularly successful for the company. In 2011, Apple was forced to lower its minimum iAd buy in, and it looks like the lower price tag hasn’t brought in much extra revenue with competing ad services raking in far more cash.