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Mobile Advertising Market Size


Projected Us Mobile Advertising Expected To Increase In 2013

Projected US mobile advertising is expected to increase in 2013 from 2012. This projection is based on a comprehensive analysis of information collected from many research sources on a given topic which is then evaluated for methodology, historical accuracy, discrepancies in definitions before being incorporated into analytical models from which conclusions are made about the entire mobile advertising market.

The Biggest Advertisers in Mobile

To create bottom-up models for major players in the US mobile ad market, dozens of data types are gathered from over 100 research firms, over 50 interviews with industry execs, and over 300 data points. Research sources included ZenithOptiMedia, Credit Suisse, Apple, BIA/Kelsey, Barclays Capital, Cowen and Company, JPM Securities, Cantor Fitzgerald, Google, Facebook, J.P. Morgan, Yellowpages, Forrester, Jefferies, MAGNAGLOBAL, William Blair and Company, Pivotal Research Group, Millennial Media, Winterberry Group, PricewaterhouseCoopers, and Yankee Group.

Google’s Model

As an example, Google’s model was built by analyzing reported revenue figures, traffic acquisition costs and usage from Google as well as figures from outside sources. These include revenue estimates from research firms, ad impression estimates and pricing, interviews with industry executives, site traffic and other figures. As a result, Google had $3.9 billion in US mobile ad revenue. Other companies experienced high mobile ad revenue: $1.1 billion for Facebook; $378 million for YP; $375.7 million for Pandora; $266 million for Twitter; $212.9 million for Apple (iAD); and $94.4 million for Millennial Media.

Analyzing the Current Market

After incorporating findings for each company, models are then built for each mobile ad format by analyzing 42 data points from nine research sources which varied wildly. Pairing the findings with knowledge of the marketplace, it was concluded that there was a wide range of revenue estimates by research sources for display, search engine, messaging, video and other advertising formats. Final projected figures were: $3.5 billion for search engine advertising; $216 million for messaging advertising; $518 billion for video advertising; and $100 from other advertising formats.

Analyzing overall mobile ad market estimates showed projected increases in estimated total mobile ad spending dollars (billions) and in estimated percentage of mobile ad spending growth. This was done by comparing and validating 49 data points, 27 estimates of mobile ad spending, and 22 estimates for mobile ad spending growth to trends in mobile advertising media including smartphone use, tablets, and mobile social network usage. Economic growth trends, total media advertising spending, and digital spending growth were also examined. As a result, mobile ad spending estimates could be created for each of the companies.

As a final result of comprehensive analysis of 400 data points, over 100 research sources, dozens of data types ad multiple models, it was projected that there would be an increase of $7.5 billion in US mobile advertising in 2013 up from 2012.

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