Recent figures from research firm IDC show that the US market for mobile advertising is growing at a rapid rate, doubling over the past year.
Even more interesting is the conclusion that Google currently represents almost 60% of this market revenue!
According to the IDC report, as quoted in Bloomberg Businessweek, the US market for mobile display and search advertising in 2009 was approximately $368 million. This year, it is expected to more than double to $877 million. This is a result of more and more brands devoting a larger share of their media budget to the channel.
“Advertisers have embraced this in a big way,” says Karsten Weide, a vice-president at IDC. “They think it’s a great marketing tool; they are flocking to it. The infrastructure and the audience are finally there to make this worthwhile.”
The big winner in this market seems to be Google, whose market share has jumped from 49% last year to 59% this year. In fact, in their Q3 2010 financial report, Google announced that they expect to generate $1 billion this from mobile. (see MobiAd article).
A large part of this growth comes from Google’s acquisition of of mobile network AdMob, which had 8% market share last year.
Google CEO Eric Schmidt famously stated “We can make more money in mobile than we do in the desktop eventually…” and the company seems to be moving to make that promise a reality.
IDC also predicted market share numbers for the other four key players in the US mobile ad market:
Apple, which was not in the mobile ad business in 2009 will end up 2010 with just over 8% market share. A large part of this is their purchase of Quattro which was 5% in 2009, combined with Apple’s own growth.
Millennial Media will be third in the market, with a share of 6.8 percent, growing from 5.4 percent in 2009.
Yahoo will drop to fourth place with 5.6%, down from 7% in 2009.
Finally, Microsoft is predicted to end the year with 4.3 percent, down from 6.3 percent in the previous year.
Although it is of course very hard to tell exactly what path the market will follow over the coming year, a couple of things seem fairly clear.
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