Google benefited from almost 60 percent of U.S. mobile ad spend for both search and display ads in 2010. Apple grabbed 8.4 percent of the spend, but almost tied Google in display ads.
Google garnered 59 percent of a U.S.
mobile advertising market worth $877 million in 2010, thanks largely to the
search ad business the company claimed was operating at a $1 billion run-rate this year
Market researcher IDC said Apple was the
runner-up at 8.4 percent of the U.S.
ad spend, which rose 138 percent from the $368 million spent last year. Millennial
Media collected 6.8 percent of revenue share for the year.
IDC analyst Karsten Weide added search
and display ad revenues to calculate total market share. Weide, who factored in
Google's $1 billion search ad run-rate, said Google's 2010 gross revenue will
be $519 million. Apple will tally $73.5 million while Millennial will bank $60
Spend on search ads led spend on display ads 55.6 percent to 44.4 percent,
with Google all but putting the game out of reach from rivals Yahoo and
Microsoft by collecting 91.4 percent of total search ad revenue.
But it's the display market that has gotten interesting and
hyper-competitive. Google and Apple are virtually tied in display ads, with
Google edging Apple at 19 percent to 18.8 percent for the year. Millennial
ranks third with 15.4 percent, with Yahoo having 10 percent.
Apple's market share plot is spectacular considering it only launched its
iAd platform July 1. Clearly, many brand advertisers had little trouble ponying
up the $1 million entrance fee
for iAd to get prominent placement
on the iPhone, iPad and iPod Touch.
Google meanwhile made its display bank with
AdSense for Mobile and display ads
served by its AdMob team
, which the company acquired in May.
It will be interesting to watch the evolving battle between Google and Apple
in display ads in 2011. Both companies will add more brands that will want to
serve interactive ads to keep consumers engaged longer.
Still, Weide expects Google to eclipse Apple in display ad sales because
Android handsets are now outselling Apple iOS-based products.
While Apple shipped 14 million iPads in the fourth quarter, Android is
seeing 300,000 devices activated
each day, good for 9 million
devices switched on per month.
"We do expect Google to grow its display sales faster than Apple in
2011 because as Android devices outsell iOS devices, they will generate more
traffic, ad inventory and, eventually, sales than Apple through iOS
devices," Weide wrote.
"Taking into account search and display ads, Google will likely grow
its total 2010 mobile online ad market share of 59 percent even further."
Regardless, Google rivals Apple, Millennial, Yahoo and Microsoft may not
lack for ad dollar opportunities.
Weide estimates the U.S.
mobile ad market will top almost $2 billion in 2011, or 120 percent more than
the 2010 total.