Thursday, January 12, 2012

Mobile Video Provides Biggest Growth for Ad Support

Ad-supported mobile content revenues will exceed $1 billion by 2015, eMarketer estimates, with the fastest growth coming from ad support for mobile video.
Last year, US mobile video revenues from advertising reached just $37.5 million, but by 2015, advertisers will spend $213.6 million on placements that support mobile video content. Despite such rapid growth, that figure will still be lower than the amounts spent on advertising against mobile games and mobile music, at $65.3 million and $181.4 million, respectively, in 2011 and rising to $269.1 million and $591.5 million, respectively, by 2015.
That year, eMarketer estimates, 29.9% of all mobile content revenues, or $1.07 billion, will come from advertising.

US Ad-Supported Mobile Content Revenue Growth, by Segment, 2010-2015 (% change)

Ad support as a share of total mobile content revenues will grow for each of the three content types over the forecast period. Currently, mobile music has the greatest share of dollars coming from ads, and it will hold that position, with ad dollars making up 73.9% of the total in 2011 and 79.3% by 2015.
But the fast growth of mobile video ad revenues will mean much more substantial changes in revenue composition. While ad dollars made up just 5.4% of mobile video revenues in 2011, by 2015 that figure will more than triple, to 16.5%.

Ad-Supported Share of US Mobile Content Revenues, by Segment, 2011-2015 (% of total in each segment)

Mobile gaming ad revenues will also rise as a proportion of the total, albeit more slowly, from 13.8% in 2011 to 17.4% by 2015.
eMarketer forms its estimates of mobile content spending through a meta-analysis of data from dozens of research sources as well as overall trends and consumer behaviors around mobile gaming, music and video.

Jason Kiwaluk

Mower & Shoveller,

Ecommerce | Adtech | Innovation | Strategy

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