IDC: Social Networks Overtaking Mobile Ad Networks

IDC Social Networks Overtaking Mobile Ad Networks 300x179 IDC: Social Networks Overtaking Mobile Ad NetworksOn Tuesday, IDC published an eye-opening new report highlighting that large mobile publishers like Facebook, Pandora, and Twitter are consistently gaining control over the display advertising market.

The aforementioned names – along with other industry heavyweights – now claim ownership of 52% of this space.

According to IDC, this reality understandably notes a major shift in mobile advertising that was previously controlled by mobile ad networks like Google, Apple, and no shortage of other large and small companies.

Strong growth in mobile advertising spending in the United States continues, even if annual growth rates continue to decline: the market grew by 88% in 2012 (down from 125% in 2011) to a total of $4.5 billion (up from $2.4 billion in 2011). Mobile market share within all digital advertising reached 11% in 2012, up from 7% in 2011. For 2013, IDC expects a growth rate of 55–65%, with spending coming in around $7 billion, for the United States.

“Mobile ad networks are losing market share to publishers, and we expect them to lose even more going forward,” observes 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.”

All of this information and more can be found in the new IDC report, 2012 U.S. Mobile Advertising Market Sizing and Vendor Market Shares.



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