Mobile display ad spend in the U.S. will almost quadruple to exceed $1.2 billion in 2015, opening the battle for ad dollars between Apple's iPhone and iPad and Google's Android smartphones and tablets.
Spending on mobile display ads in the United States is around $313 million
today, but this will almost quadruple to exceed $1.2 billion in 2015, according
to ABI Research.
That means there will be a lot of dollars to be earned advertising on
Apple's iPhone and iPad and smartphones and tablets based on Google's Android
ABI conducted a survey and found that 28
percent of the mobile subscribers surveyed accessed the mobile Internet every
day. People are accessing information about news and sports, and are consuming
a lot of YouTube video from their smartphones.
They are also texting and searching and accessing pretty much any
application they do from their desktop. All of these provide great
opportunities for mobile ad specialists who strive to fit alluring pitches on
the so-called third screen.
"This is a huge increase over the number doing so just 14 months ago,
and is a powerful driver for the mobile marketing and advertising market,"
said ABI analyst Neil Strother.
Moreover, the emergence of Apple's tablet computer as a major mobile
computing device is creating more opportunities for mobile advertisers to get
their wares out on a larger touch screen.
"Marketers have increasingly been shifting budgets into mobile
campaigns," said Strother. "This became evident during our research
interviews with advertising agency executives, technology vendors and mobile ad
network operators, who said they have been seeing year-over-year increases of
25 percent to 30 percent in campaign spending."
To serve this market, Apple created
its iAd advertising platform, which serves ads within
applications for the iPhone and iPad. This platform launched July 1, charging
advertisers premium prices to serve ads on the popular smartphone and tablet.
Google's AdMob assets represent Apple's chief rival in the mobile display ad
camp. Apple had tried to buy AdMob before Google swooped in
with a better deal.
Combined with its Google AdSense for mobile product on Android-based
smartphones and tablet computers, the search engine company has strong
alternatives to Apple iAd.
Indeed, despite language in its developer terms that seem to prohibit
effective advertising on the iPhone by Google's AdMob or AdSense products,
Apple appears to be allowing users of Google's ad platforms to serve ads
on the popular smartphone.
That should promote some healthy competition. Apple sells the most popular smartphone
in the United States;
Google has the cachet of its decade-plus of advertising skills and a swiftly
proliferating Android platform.
Collecting the crumbs from Google's and Apple's tables are several
independent ad networks, including Millennial Media, Jumptap and Greystripe.